A-share market closing review: the Shanghai Composite Index closed up 0.07%, technology stocks fell again, with significant declines in storage, CPO, and other sectors.

This afternoon, the market took a dive, with technology stocks leading the decline in both markets. Trading volume shrank again, and three major news items are likely to impact the market: 1. The South Korean stock market suddenly plunged in the afternoon, leading to a weakening of the entire Asia-Pacific market. The South Korean KOSPI index closed up 49.75 points, or 0.74%. In the morning, the index had risen by over 6%. 2. The previous day, A-shares rose sharply, leading to a large amount of short-term profit-taking. There is a strong demand for volatile pullbacks based on technical analysis. 3. There has been a major change in the top ten holdings of public funds. Zhongji Innolight remains the top stock, with Eoptolink Technology Inc., Suzhou Dongshan Precision Manufacturing, and other technology stocks showing strong performance. The accumulation of significant profits in the first half of the year in the technology sector has led to fluctuations in market sentiment. In terms of the market, technology stocks weakened significantly in the afternoon, with storage chip concepts fluctuating and falling back, Shenzhen Techwinsemi Technology hitting the limit down 6 times in 8 days, and Shenzhen Longsys Electronics, Biwin Storage Technology, and others following suit. The CPO concept weakened, with Zhongji Innolight, Eoptolink Technology Inc., and others pulling back. The humanoid Siasun Robot & Automation concept saw a decline across the board, with Shanghai Smith Adhesive New Material hitting the limit down. In terms of rising sectors, oil and precious metals led the two markets, and funds returned to old listed stocks, such as coal, power, and banking sectors, which were active against the market. Looking at individual stocks, there were 1530 gaining stocks, 3876 declining stocks, 124 stocks with stable gains, and 48 stocks with limit up. There were 10 stocks with limit down. At the close, the Shanghai Composite Index rose 0.07% to 3867.03 points, with a turnover of 1.2582 trillion yuan; the Shenzhen Component Index fell 1.42% to 14061.44 points, with a turnover of 1.3832 trillion yuan. The ChiNext Index fell 3.23% to 3566.73 points. Looking ahead, GF SEC analyst Liu Chenming believes that there is limited downside space for A-shares, and that AI has not yet reached a bubble. Capital flow Today, major capital focused on industrial metals, semiconductors, power, precious metals, and photovoltaic equipment. Funds flowed out of communication equipment, optical optoelectronics, glass fiber, components, and batteries. Major news review 1. Apple's iPhone 18 series has started production. According to sources from the supply chain, as of July, Apple's iPhone 18 series smartphones have begun production and are in the stage of ramping up capacity. It is reported that Foxconn, Apple's assembly partner, has entered a peak hiring period. 2. South Korean KOSPI index closed up 0.7%, with an early morning increase of over 6%. The Nikkei 225 index fell by 116.59 points on July 22 (Wednesday), a decrease of 0.18%, to 66115.60 points. The South Korean KOSPI index closed up 49.75 points on July 22 (Wednesday), an increase of 0.74%, to 6797.7 points. In the early morning, the index had risen by over 6%. SK hynix fell by 0.32%, while Samsung Electronics rose by 0.57%. 3. Yu Tree Technology CEO Wang Xingxing: The moment of "ChatGPT with embodied intelligence" is likely to come within two to three years. At the 2026 World Internet Conference Digital Silk Road Development Forum on July 22nd, held in Xi'an, Shaanxi, Yu Tree Technology founder and CEO Wang Xingxing attended the opening ceremony and gave a speech. In the past few years, Siasun Robot & Automation has made rapid progress from walking to dancing, kung fu fighting to simple services. Wang Xingxing believes that the moment of "ChatGPT with embodied intelligence" is likely to come within two to three years: at that time, Siasun Robot & Automation will be able to work directly in most unfamiliar situations and perform many basic functions. Therefore, everyone should make various plans and arrangements according to their actual situation in advance in order to seize the new opportunities of the intelligent era. 4. China's first quantitative hyperspectral intelligent computing satellite successfully put into orbit. At 10:54 on July 22, 2026, the first domestic quantitative hyperspectral intelligent computing satellite, "Xiguang Number 01 (Caiyun Hyperspectral 01)" developed independently by Xi'an Zhongxi Aerospace Hi-Tech Holding Group Co., Ltd., was successfully launched into orbit by the Long March One Y4 carrier rocket in the East China Sea. The satellite is the first satellite customized and developed by Zhongxi Aerospace for the Yunnan Geological and Mineral Prospecting and Development Bureau, and the first hyperspectral satellite of the Yunnan Geological Survey "Caiyun Constellation" series. It is also the first AI computing satellite that combines breakthroughs in hyperspectral quantitative remote sensing technology with real-time intelligent processing in orbit after the strategic cooperation between Zhongxi Aerospace and Zhejiang Laboratory. Future market analysis 1. Huaxi: Technically, the rebound space has been opened. Huaxi stated that from the perspective of market operation rules, this round of correction is essentially a benign technical repair for the previous rapid rise. Since April 2026, the technology sector has continued to strengthen, with some sectors seeing a rapid increase in valuation. There is an inherent need in the market for valuation reversion and chip exchange. After the recent continuous adjustment, the accumulated profits have been to some extent digested, and the irrational selling pressure has been partially released. The conditions for the market rebound are gradually maturing. From a valuation perspective, major broad-based indices have fallen back to relatively low levels for the year, significantly increasing safety margins. From a liquidity perspective, market leverage risks have been effectively cleared, margin balances have significantly decreased, and mainstream broad-based ETFs have continued to attract funds at low levels, indicating an increasing acceptance of the current levels by medium- to long-term funds. With the decrease in crowdedness and the balance of trading structure, the technical side has opened up space for rebound repairs. 2. GF SEC Liu Chenming: Limited downside space for A-shares, AI has not yet become a bubble. GF SEC's chief strategist Liu Chenming commented that the current A-share market correction is mainly driven by external input factors, emotional and financial shocks, with the core pricing factor being liquidity shocks both internal and external, rather than a directional reversal of domestic fundamentals or industry trends. Based on a triple judgment of "AI industry trend continuation + sufficient adjustment range + clear ETF incremental funds signal", the second "win-lose hand" of 2026 is approaching, and the conditions for rebound are gradually maturing. 3. CITIC SEC: Dividend assets in the second half of 2026 are expected to enter the valuation repair range. A CITIC SEC report stated that in the first half of 2026, impacted by multiple factors such as geopolitical disturbances and tightening liquidity, major asset classes showed significant differentiation and volatility. Looking ahead to the second half of 2026, dividend assets are expected to enter the valuation repair range; gold is expected to undergo short-term oscillations and bottoming out with long-term structural support; style-neutral portfolios in active equity funds are expected to benefit; quantitative funds' excess returns or improvement may be realized; absolute return "fixed income +" funds are more adaptable in differentiated markets; macro allocation strategies may be less affected by liquidity disturbances; subjective CTA strategies are expected to have a stronger advantage. This article was reprinted from "Tencent Stocks", Editor: Liu Jiayin.