A-shares at midday | ChiNext Index rises 4.83%, CPO and CRO concepts surge, over 3,700 stocks up

Market Overview The market shows a rebound pattern characterized by "collective rise of indices, broad gains in individual stocks, and prominent structural hot spots." On August 4, the three major A-share indices opened high and strengthened during the morning session, with the ChiNext Index leading the gains. By the close of the morning session, the Shanghai Composite Index rose by 0.16%, the Shenzhen Component Index increased by 2.74%, and the ChiNext Index surged by 4.83%; the Sci-Tech 50 rose by 2.91%, and the BSE 50 gained 1.67%. A total of 3,760 stocks in the market rose, while 1,599 stocks fell, including 85 hitting the daily limit up and 1 hitting the daily limit down. The turnover for the Shanghai and Shenzhen stock exchanges was approximately 1.36 trillion yuan, a decrease of about 4.4 billion yuan compared to the previous trading day. Market Review On the upside, the CPO (Co-Packaged Optics) and optical communication sectors exploded across the board, with Semight Instruments rising over 17%, Yuanjie Semiconductor Technology increasing by over 12%, and Zhongji Innolight, Eoptolink Technology Inc., and Suzhou TFC Optical Communication experiencing significant increases. Stocks like Suzhou Dongshan Precision Manufacturing, Jiangsu Etern, and Suzhou Shijia Science & Technology Inc. hit the daily limit up. The CRO (Contract Research Organization) concept saw a massive surge, with WuXi AppTec, Asymchem Laboratories, and Xinjiang Bai Hua Cun Pharma Tech hitting the daily limit up, while Porton Pharma Solutions and Pharmaron Beijing followed suit. The computing power leasing sector maintained its strong performance, with Mcc Meili Cloud Computing Industry Investment achieving three consecutive price limits, Glory View Technology hitting a 20% limit up in three days with two limits up, Qingyun Technology hitting a 20% limit up, and stocks like Jiangsu Lettall Electronic, RunJian Co., Ltd., and Nanjing Canatal Data-Centre Environmental Tech also hitting the limit up. The AI application sector remained actively engaged, with Jiangsu Chuanzhiboke Education Technology hitting seven consecutive price limits, Cashway Fintech achieving three consecutive price limits, and stocks like Fanli Digital Technology and China Science Publishing & Media recording three price limits in five days. On the downside, the banking sector saw notable declines, with the Industrial and Commercial Bank of China and Bank of China both dropping over 3%. The liquor sector weakened, with Kweichow Moutai decreasing by about 1.91%. The insurance and airport shipping sectors also performed poorly. Overall, funds flowed out of heavy-weight sectors like banking and liquor, into technology growth sectors like CPO, computing power, and innovative drugs, showing a clear characteristic of structural rebound in the market. Hot Sectors 1. CPO and Optical Communication Concept Exploded The sector experienced a surge of limit-up stocks, with Suzhou Dongshan Precision Manufacturing, Jiangsu Etern, Suzhou Shijia Science & Technology Inc., Hui Lyu Ecological Technology Groups, Shenzhen Everbest Machinery Industry, Tongyu Communication Inc. hitting the daily limit up, and Semight Instruments rising over 17%, Advanced Fiber Resources increasing by over 16%, East Point rising by over 16%, Sharetronic Data Technology increasing by over 14%, Henan Shijia Photons Technology rising by over 14%, Yuanjie Semiconductor Technology increasing by over 12%, Eoptolink Technology Inc. rising by over 11%, Suzhou TFC Optical Communication increasing by over 10%, and Zhongji Innolight rising by over 9%. Commentary: According to TrendForce, NVIDIAs next-generation Spectrum-X CPO switch has begun shipping to some partners, and Broadcom's 51.2T Bailly CPO switch continues to ship in small amounts, marking the official entry of Co-Packaged Optics (CPO) technology into production. NVIDIA's Senior Vice President Gilad Shainer stated that the biggest opportunity in the optical communication market lies in scale-up, requiring bandwidth performance ten times that of scale-out. Additionally, the four major cloud providers in North America are expected to see continued rapid growth in capital expenditures in Q2 2026, raising their full-year guidance and extending visible demand until 2028. Citigroup noted that the Chinese optical communication sector may present layout opportunities around the performance releases in the first half of 2026. 2. Massive Surge in CRO Concept The sector opened high and rose, with WuXi AppTec hitting the daily limit up, with a total market value exceeding 420 billion yuan; Asymchem Laboratories, Xinjiang Bai Hua Cun Pharma Tech, Hainan Shuangcheng Pharmaceuticals, Luoxin Pharmaceuticals Group Stock, and Harbin Medisan Pharmaceutical also hitting the daily limit up, while Porton Pharma Solutions, Pharmaron Beijing, Shanghai Medicilon Inc., Boji Medical Technology, Shanghai Haoyuan Chemexpress, and Novoprotein Scientific Inc. followed suit. Commentary: On the evening of August 3, WuXi AppTec released its semi-annual report for 2026, reporting revenue of 28.897 billion yuan in the first half, a year-on-year increase of 38.93%; net profit attributable to the parent company surpassed 10 billion yuan for the first time in the first half, reaching 11.08 billion yuan, a year-on-year increase of 29.43%. The company has comprehensively raised its full-year performance guidance for 2026, adjusting the overall revenue forecast from 51.3 billion to 53 billion yuan to a range of 58.5 billion to 60.5 billion yuan, while the year-on-year growth rate for revenue from ongoing operations has been adjusted from 18%-22% to 35%-39%. According to Wind data, as of August 3, 104 pharmaceutical and biotechnology companies in the A-share market have disclosed their semi-annual earnings forecasts for 2026, of which 58 expect net profit attributable to the parent company to grow in the first half and 28 expect a year-on-year growth of over 100%. 3. Computing Power Leasing Concept Maintained Strong Performance The sector continued to rise, with Glory View Technology hitting a 20% limit up in three days with two price limits, Mcc Meili Cloud Computing Industry Investment achieving three consecutive price limits, and Qingyun Technology hitting a 20% limit up. Stocks like Jiangsu Lettall Electronic recorded two price limits in three days, Goldlok Holdings (Guangdong) hitting the daily limit up, and Xingyun Technology, RunJian Co., Ltd., and Nanjing Canatal Data-Centre Environmental Tech also hitting limit up, while Sharetronic Data Technology, UCloud, and HIACENT rose over 10%. Commentary: According to data from the China Academy of Information and Communications Technology, domestic AI computing power demand grew by 417% year-on-year in Q1 2026, while effective supply increased by only 128%, continuing to widen the supply-demand gap. The current price of the top-end B300 spot has surpassed 14.5 million yuan, and the monthly rental for the H200 complete machine has also increased, indicating a situation of supply not meeting the high demand for advanced computing power. Additionally, media reports disclosed that the National Development and Reform Commission recently announced that direct investment in the construction of computing power networks during the 14th Five-Year Plan period will be increased by 4 trillion yuan, accelerating the construction of a nationwide integrated computing power system. 4. AI Application Sector Remained Actively Engaged The sector continued to strengthen, with Jiangsu Chuanzhiboke Education Technology hitting a daily limit up to achieve seven consecutive price limits, Cashway Fintech achieving three consecutive price limits, while China Science Publishing & Media and Fanli Digital Technology recorded three price limits in five days. Easy Click Worldwide Network Technology increased by over 15%, Beijing Hanyi Innovation Technology hit a 20% limit up, and companies like Hangzhou Raycloud Technology Co., Ltd., Fujian Fuxin Software Development Joint Stock, and BlueFocus Intelligent Communications Group followed suit. Commentary: Overnight in the U.S. stock market, AI application concept stocks Palantir and Snap both reported earnings that exceeded expectations. Palantir reported second-quarter revenue of 1.94 billion USD, a 93% year-on-year increase, far exceeding analysts' expectations of 1.8 billion USD; Snap's second-quarter revenue reached 1.6 billion USD, surpassing the expected 1.54 billion USD. The stock prices of both companies rose over 14% in after-hours trading. Regarding Jiangsu Chuanzhiboke Education Technology, the company recently officially launched the new subject "AI Embodied Intelligent Siasun Robot & Automation Development" and released six teaching Siasun Robot & Automation hardware, with the first courses set to begin in October.