A-shares market closing review | Shanghai Composite Index down 1.61%, A-shares decline on shrinking volume, semiconductor sector surges in the afternoon.

Today, the market as a whole is down, with the Shanghai Composite Index stopping at four consecutive rises. In the afternoon, the semiconductor sector was relatively active. It is worth noting that Changxin will be listed next Monday, and there is a strong wait-and-see sentiment among investors, with the total turnover of the two markets only reaching 1.9 trillion, setting a new low for the stage. Looking at the market, hot rotation is accelerating, with sectors like military industry and banks active. Military industry reorganization and military equipment concepts continue to rise, with many stocks such as Hunan Tyen Machinery and Jianshe Industry Group hitting the daily limit. In the afternoon, the semiconductor equipment sector surged again, with Tolerance Technology rising for 3 consecutive days, and Shanghai Gentech, Circuit Fabology Microelectronics Equipment, Wuhan Jingce Electronic Group, Piotech Inc., and Kingsemi Co., Ltd. all rising by over 6%. The mining chip concept fluctuated and rebounded, with Guangdong AVCiT Technology Holding hitting the daily limit, and Aojet Technology rising by over 10%. Montage Technology, Muxi Shares, Hygon Information Technology, and Verisilicon Microelectronics (Shanghai) Co., Ltd. followed suit. In other sectors, advanced packaging concepts fluctuated and rebounded during the day, with Gl Tech Co., Ltd. hitting the daily limit, and TongFu Microelectronics, Circuit Fabology Microelectronics Equipment, Wuhan Guide Infrared, Optics Technology Holding, and Tianshui Huatian Technology following suit. Market analysts pointed out that after-hours trading of some semiconductor companies in the US saw stock price increases, effectively boosting market sentiment. At the same time, several A-share semiconductor companies have reported impressive half-year financial performances, attracting continuous attention from investors. Some institutions have stated that despite the recent volatility in the technology sector, the logic of the semiconductor industry's prosperity remains unchanged. They recommend focusing on expanding production capacity and key areas such as advanced packaging, wafer outsourcing, semiconductor equipment, and materials. On the decline side, precious metals, industrial metals, glass fiber, media, and other industries led the market down. Looking at individual stocks, 555 stocks rose in the two markets, while 4940 fell, and 36 remained unchanged. There were a total of 43 stocks hitting the daily limit and 25 stocks hitting the limit down. At the close, both markets fell, with the Shanghai Composite Index down 1.61% at 3814.20 points, with a turnover of 915.4 billion yuan; the Shenzhen Component Index fell 2.47% to 13774.68 points, with a turnover of 100.41 billion yuan. The ChiNext Index fell 2.65% to 3480.87 points. Looking ahead, Industrial believes that the logic of the semiconductor industry's prosperity remains unchanged, and the domestic storage industry chain still has great room for development and capital expenditure. Funds Trend Today, major funds focused on semiconductor, ground military equipment II, other electronics II, environmental governance, textile manufacturing and other industries; net outflows were seen in communication equipment, power, components, securities II, and industrial metals. Key News Recap 1. It was rumored that a brokerage submitted a risk control notification to guard against speculation on Changxin Technology's debut listing on the science and technology innovation board. However, personnel from several branch offices of the brokerage stated that they did not receive a similar notification. 2. The stock markets in Japan and South Korea closed down, with the Korean market dropping nearly 6%. 3. Morgan Stanley warned that the AI storage frenzy is approaching a turning point, and memory prices may peak in the fourth quarter. 4. Xiaopeng Robotics' Siasun Robot & Automation initiated small-scale trial production at its Guangzhou factory, with mass production lines entering the final commissioning stage. Market Outlook 1. Industrial: The logic of semiconductor prosperity remains unchanged, and the domestic storage industry chain still has great room for development and capital expenditure. 2. Caixin Securities: The market may stabilize, and there may be a style rebalancing trend in the short term. 3. Central China: The marginal impact of overseas volatility on A shares will gradually diminish. 4. Galaxy Securities: It is recommended to focus on the direction of semiconductor equipment and materials. This article was reprinted from "Tencent's Self-selected Stocks," edited by Liu Jiayin.