A-shares market wrap-up: Index collectively fell, with more than 4100 stocks declining in both markets! ChiNext Index rose against the trend.

On June 4th, the A-share market experienced a day of volatility and adjustment, with all three major indices collectively falling. By the closing bell, the Shanghai Composite Index dropped by 0.64%, the Shenzhen Component Index fell by 0.27%, and the ChiNext Index declined by 0.83%. Most stocks in the market experienced more declines than gains, with over 4100 stocks falling. The total market turnover for the day was 2.74 trillion yuan, a decrease of 387.1 billion yuan compared to the previous day. In terms of sector performance, the semiconductor industry chain remained strong, with industrial gases, lithography machines, and storage chips all seeing collective increases. Stocks like Peric Special Gases, Vantone Neo Development Group, and Wuxi Taiji Industry all hit the limit up. The power sector also rose, with Zhejiang Xinzhonggang Thermal Power and Henan Yuneng Holdings hitting the limit up. The PCB concept experienced a rebound, with stocks like Zhejiang Hengtong Holding and Olympic Circuit Technology hitting the limit up. The coal sector also saw increased activity, with Shanxi Antai Group and Pingdingshan Tianan Coal. MiningCo., Ltd. both hitting the limit up. On the downside, the non-ferrous metals sector experienced a significant decline, while the oil and gas industry chain showed weak trends. Consumer stocks like liquor and retail collectively declined, as did AI application concepts and major financial stocks. Additionally, sectors like chemicals, rare earths, and electric grid equipment performed poorly. Looking ahead, BOC International believes that in the next month, factors such as bank MPA assessments and tightening liquidity due to IPO volume increases may lead to a slight tightening of market micro-liquidity. Overall, it is expected that there may be some volatility in market risk preferences in the near term, potentially resulting in a slight phase of pullback pressure. Based on these macro assumptions, the market may see a phase of style balance performance in the coming month, with large market capitalization, low profitability, and low valuations becoming the dominant style direction. Popular Sectors: 1. The semiconductor industry chain remains strong, with stocks like Peric Special Gases, Vantone Neo Development Group, and Wuxi Taiji Industry all hitting the limit up. 2. The power sector rose, with Zhejiang Xinzhonggang Thermal Power and Henan Yuneng Holdings hitting the limit up. 3. The PCB concept rebounded, with stocks like Zhejiang Hengtong Holding and Olympic Circuit Technology hitting the limit up. 4. The coal sector saw increased activity, with Shanxi Antai Group and Pingdingshan Tianan Coal. MiningCo., Ltd. both hitting the limit up. Institutional Views: - BOC International: Market risk preferences may fluctuate in the high range in the short term, with a potential for slight pullback pressure. - Huatai: Following extreme differentiation in the market, there may be a high demand to low demand phase. - Tianfeng: The speed of industry rotation is increasing, and the sustainability of the market's short-term strong direction remains limited. - Tianfu Securities: The current market has strong fund divergences, making trading more difficult. Holding positions, taking profits, and protective operations are recommended.