A shares market closing review | Three major factors suppress! Index fluctuates and falls

Today, the Asia-Pacific stock markets collectively fell, with the Nikkei 225 index closing down 1.99% and the South Korean KOSPI index dropping 6.12%. The three major A-share indices initially turned red in the morning session, but fell again in the afternoon, with the Shanghai Composite Index dropping more than 1%. On the market, Siasun Robot & Automation and the chemical industry sector showed opposite trends. The market turnover for the day was 3.3 trillion, slightly lower than the previous trading day, with over 3500 stocks experiencing declines. According to public market information and the latest analysis from securities firms, the recent significant adjustments in the A-share market are not solely due to a single negative factor, but rather the result of a triple resonance of "internal profit-taking + external liquidity disturbance + micro-performance disappointments." Firstly, profit-taking from high positions is concentrated. After the Spring Festival, A-shares (especially ChiNext and the STAR Market) rose continuously, with popular sectors like AI computing power and optical communication seeing significant gains and accumulating substantial profits. When the index neared the key resistance level of 4200 points, some major players "took profit and ran," triggering a stampede-like exodus. Secondly, external disturbances, including the situation in the Middle East (repeated conflicts between the US and Iran) and the changing expectations of a US Federal Reserve interest rate cut. The market is concerned that the Fed's rate cut pace will be further delayed, leading to a rise in the 10-year US Treasury bond yield. This has directly suppressed the valuations of global growth stocks (especially AI and semiconductor stocks in A-shares). Thirdly, frequent "earning surprises" during the performance validation period. The performance forecasts and actual data of popular stocks such as Taiji Computer Corporation, Fujian Start Group, and Shanghai Wondertek Software have shown significant deviations, directly triggering trading halts for these related stocks and increasing risk aversion sentiment among investors. In the market, the Siasun Robot & Automation concept surged, with over ten component stocks hitting the limit up. Greatoo Intelligent Equipment Inc., China Leadshine Technology, Keli Motor Group, Zhejiang Zomax Transmission, and Shandong Daye all hit the limit up. The industry has seen ongoing positive developments, with the local government regulation "Hangzhou City Regulation on Promoting the Development of Siasun Robot & Automation Industry" officially implemented in May this year. On the enterprise side, Tesla announced the commencement of preparations for the construction of its first large-scale humanoid Siasun Robot & Automation factory in the second quarter, and the third-generation humanoid Siasun Robot & Automation Optimus V3 is expected to debut in mid-year with formal production starting in July-August. Additionally, the fluoride chemical industry sector showed collective strength, with Befar Group, Zhejiang Zhongxin Fluoride Materials, and Do-Fluoride New Materials hitting the limit up. According to reports, several Korean anhydrous hydrofluoric acid manufacturers have begun purchasing anhydrous hydrofluoric acid from China starting this month, with purchase prices up by about 40% from the beginning of the year. Semiconductor equipment stocks continued to rise, with NAURA Technology Group hitting the limit up and reaching a historical high stock price, with a total market value exceeding 450 billion. AI application companies saw upward movements, with game and cultural media stocks collectively rising, and Inly Media Co., Ltd and Guangdong Guangzhou Daily Media hitting the limit up again. The liquid cooling concept became active once more, with JinFu Technology and Zhejiang Dayuan Pumps Industry reaching the limit up. On the downside, precious metals and non-ferrous metal stocks collectively declined, with Ningbo Zhongbai approaching the limit down; the power and electrical equipment concepts experienced a volatile adjustment; the photovoltaic equipment concept also saw a volatile decline; pork and breeding sector saw a pullback; and Baijiu stocks underwent an adjustment, with Jiugui Liquor and Luzhou Laojiao declining. Looking ahead, CAXIN Securities believes that the current market environment has not fundamentally changed, and the short-term trend of volatile upward movement has not been completely disrupted. A thorough adjustment will help build up momentum for an upward move. In the short term, the technology sector may remain the main trend, with a focus on rotation in other sectors. It is recommended to grasp the market rotation rhythm and focus on the recovery opportunities after the divergence of core stocks. In terms of individual stocks, 1816 stocks in the two markets rose, while 3584 stocks declined, and 117 stocks remained unchanged. There were a total of 72 stocks hitting the limit up and 45 stocks hitting the limit down in the two markets. At the close, both markets moved lower, with the Shanghai Composite Index down 1.02% at 4135.39 points, with a turnover of 151.93 billion yuan; the Shenzhen Component Index fell 1.17% to 15561.37 points, with a turnover of 180.93 billion yuan. The ChiNext Index fell by 0.56% to 3929.06 points. Capital Flow Today, major funds focused on the automotive parts, chemical products, and general equipment sectors, with top net inflows going to individual stocks such as Do-Fluoride New Materials, Zhejiang Sanhua Intelligent Controls, and Sungrow Power Supply. News Review 1. Foreign Ministry Spokesperson on US President Trump's visit to China responds to questions The spokesperson responded to questions about US President Trump's visit to China, stating that the leaders of the two countries agreed to build a "constructive strategic stable relationship between China and the United States" as a new positioning for China-US relations, providing strategic guidance for the future of bilateral relations over the next three years and beyond, promoting stable, healthy, and sustainable development of the two countries' relations, and bringing more peace, prosperity, and progress to the world. The two leaders also reached important consensus on handling each other's concerns properly and agreed to enhance communication and coordination on international and regional issues. 2. Did the sharp drop in stock prices result from "failed price negotiations"? Victory Giant Technology responds: False information There were reports linking the sharp drop in Victory Giant Technology's stock price on May 14 to a failed negotiation for a price increase by a major PCB manufacturer, leading to market attention. However, on May 15 noon, when a reporter contacted Victory Giant Technology as an investor, the company representative responded, "That news (circulating online) is false information. There are many factors influencing stock price fluctuations, and today there has been a significant pullback in the overall PCB market." 3. Focus on investor protection - CCAC solicits opinions on two standards In the context of continuous improvement of investor protection in the Chinese capital market, the China Securities Industry Association publicly released two important draft industry group standards for public opinion, focusing on dispute mediation and suitability management, seeking market optimization suggestions. The draft standards detail requirements for investor risk assessment, continuous evaluation, and information verification, specifying suitability rules for business areas such as the Sci-Tech Innovation Board, CHINEXT, the Beijing Stock Exchange, the Hong Kong Stock Connect, margin trading, asset management, and product sales; emphasizing internal control assessments and accountability mechanisms, incorporating suitability management into compliance and performance evaluations, strengthening the responsibilities of securities firms. Next, the CCAC will revise and improve the two standards based on feedback, officially publish and implement them after the approval process, promoting the formation of a closed-loop for "prevention, resolution, and remedy" in investor protection and increasing the sense of investor satisfaction and market confidence. Market Prediction 1. CAXIN Securities: Short-term trend of volatile upward movement not completely disrupted CAXIN Securities believes that on May 14, the A-share market experienced an adjustment without significant external negative factors, mainly due to profit-taking pressure after the CHINEXT hit a new high and the positive news surrounding the "Trump visit to China" event. Although the Shanghai Composite Index fell below the 5-day moving average, the market environment has not fundamentally changed, and the short-term trend of volatile upward movement has not been completely disrupted. A thorough adjustment will help build up momentum for an upward move. In the short term, the technology sector may remain the main trend, with rotations in other directions. It is recommended to grasp the market rotation rhythm and focus on the recovery opportunities after the divergence of core stocks. 2. Zhongtai: Market has entered "mid-summer" with brokerage valuations still at "freezing point"; the divergence may be difficult to sustain Zhongtai's research report states that since 2025, market trading activity has been continuously increasing, but the brokerage sector has significantly underperformed the overall trend, with a PB ratio currently at only 1.3 times, showing a stark contrast to positive fundamental expectations. Comparatively, as of the end of April 2026, the brokerage sector index was equivalent to the recent Shanghai Composite Index at around 3400 points, with a difference of about 20%. Brokerage firms often play a leading role in the market as "the first to see signs of warming spring water," but now that the market has entered "mid-summer," brokerage valuations remain at a "freezing point." Zhongtai believes that this divergence may be difficult to sustain. Top-tier (preferential allocation): low-valuation leading comprehensive brokerages (CITIC, CICC, Huatai), with strong overall capabilities, benefiting from industry concentration, mergers and acquisitions, and policy dividends, offering ample room for valuation recovery. Second-tier (flexible allocation): feature brokerage firms with high cost-effectiveness and clear improvement in ROE (GF Securities, Industrial Bank, Orient Securities), with a high proportion of light asset businesses such as wealth management, asset management, and follow-up investment, showing significant elasticity. 3. Guosheng: Continuous trend of rising rental prices for computing power The demand side has seen a structural surge in demand driven by Agent and AI coding, leading to a rise in rental prices for computing power and cloud services. Computing rental refers to enterprises or individuals renting the computing power they need from service providers with large computing resources by paying rent, essentially exchanging OPEX for CAPEX, with channels, customers, and funds driving the flywheel. Looking at the Chinese computing rental market, high-end computing power is in short supply, initiating a positive profit flywheel. Some computing rental companies have relied on the early deployment of large computing clusters, gradually completed delivery, acceptance, and entered the substantial billing phase, gradually completing the commercial loop, accelerating profit release in Q1 26. This article was reprinted from "Tencent Stock Selection," edited by Liu Jiayin.