A-shares at noon | Three major indices collectively closed higher, pharmaceuticals and biotechnology surged, gold and electric grid strengthened.

On August 20, the three major indices of A-shares opened higher collectively. After an early surge, the market saw a slight pullback and the gains narrowed, presenting a pattern of "collective increase in indices, broad-based gains in stocks, and pharmaceuticals and precious metals leading the rebound." By the close of the morning session, the Shanghai Composite Index rose by 0.28% to 3905.23 points, the Shenzhen Component Index increased by 0.97% to 14024.41 points, and the ChiNext Index gained 1.03% to 3509.44 points. More than 4,300 stocks in the market rose, while approximately 1,000 stocks fell, with over 80 stocks hitting the daily limit. The trading volume in the Shanghai and Shenzhen markets reached about 1.37 trillion yuan, a decrease of approximately 246.9 billion yuan from the previous trading day. Market Overview On the upside, the sectors of pharmaceuticals and biotechnology, precious metals, power grid equipment, and digital currencies saw significant gains. On the downside, agriculture, banking, coal, and oil and gas sectors dipped. Overall, driven by the overnight rebound in U.S. stocks, a sharp rise in spot gold, and positive results from the Phase III clinical trial of the mRNA cancer vaccine developed by Merck and Moderna, the sectors of pharmaceuticals and biotechnology, precious metals, and power grid equipment attracted investor attention, while the agriculture and coal sectors, which had risen the previous day, saw a pullback. Popular Sectors 1. Pharmaceuticals and Biotechnology Sector Experiences Collective Surge The pharmaceuticals and biotechnology sector opened high and continued to rise, with notable increases in vaccines, cell immunity, recombinant proteins, and gene editing. TRI-PRIME GENE 30CM hit the daily limit, while CSPC Innovation Pharmaceutical, Porton Pharma Solutions, Shanghai Obio Technology, CanSino Biologics Inc., Jenkem Technology, MGI Tech Co., Ltd., and others rose to the daily limit. Walvax Biotechnology and Chongqing Zhifei Biological Products also hit the daily limit, and Shenzhen Kangtai Biological Products increased by over 10%. Commentary: On the news front, Merck and Moderna announced on August 19 that their jointly-developed mRNA personalized cancer vaccine, intismeran autogene, had achieved preliminary positive results in its first Phase III clinical trial (INTerpath-001), significantly extending the time to recurrence for high-risk melanoma patients following surgery and reducing the risk of distant metastasis. This marks the first success of an mRNA cancer vaccine in a large Phase III clinical trial. As a result, Moderna's stock surged by nearly 177% to $174.38 in overnight trading, while Merck rose by over 12%. 2. Active Performance in the Power Grid Equipment Sector The power grid equipment sector fluctuated but trended upward, with Changshu Fengfan Power Equipment hitting the daily limit for the 14th day, and Zhejiang Chint Electrics also hitting the daily limit. Commentary: On the news front, on August 18, the State Grid and Southern Grid held talks in Guangzhou and signed a strategic cooperation framework agreement to implement the "14th Five-Year Plan" and accelerate the construction of a new power grid. The two parties will jointly promote the construction of new power systems, major power engineering projects, and a nationwide unified electricity market, boosting expectations for grid investment and activating the sector. 3. Precious Metals Sector Surges Higher The precious metals sector saw significant gains, with Inner Mongolia Xingye Silver & Tin Mining hitting the daily limit, Shandong Gold Mining and Shengda Resources increasing by over 8%, Chifeng Jilong Gold Mining rising by over 6%, and Zhongjin Gold Corp., Ltd., and Western Region Gold also following suit. Commentary: On the news front, spot gold rose by over 4%, returning above $4,500. The three major U.S. stock indices closed collectively higher overnight, the yield on 30-year U.S. Treasury bonds fell back from a high of 5.31%, and the dollar index weakened, leading to a rise in gold prices and driving the precious metals sector higher.