A-share Daily Review | The three major indexes all rose over 1%, with computing hardware and storage chips leading the gains.

On August 27, all three major A-share indexes closed higher, with the Science and Technology Innovation 50 leading the gains, and the entire market showing an overall upward trend. By the close, the Shanghai Composite Index rose by 1.13% to 3956.57 points, the Shenzhen Component Index increased by 1.50% to 14048.88 points, the ChiNext Index climbed by 1.71% to 3473.35 points, the Science and Technology Innovation 50 surged by 3.77% to 1693.48 points, and the BSE 50 was up by 0.65% to 1074.96 points. The total trading volume in the Shanghai and Shenzhen markets was approximately 21,259.27 billion yuan, an increase of about 3,172.04 billion yuan compared to the previous trading day. A total of 3,394 stocks in the market rose, while 1,944 fell, with 78 stocks hitting the daily limit up and 4 hitting limit down, resulting in a gain ratio of about 61% for rising stocks. In terms of sectors, non-metallic materials (+9.63%), electronic chemicals (+5.56%), glass fiber (+5.36%), components (+5.09%), semiconductors (+4.54%), and agriculture (+4.39%) saw substantial gains; conversely, photovoltaic equipment (-2.33%), flavoring and fermentation products (-1.96%), white goods (-1.56%), grid equipment (-1.21%), state-owned banks (-1.16%), and liquor (-0.80%) experienced notable declines. Driving Factors The three major indexes closed higher collectively, with the Science and Technology Innovation 50 leading with a gain of 3.77%, followed by the Shanghai Composite Index up by 1.13%, the Shenzhen Component Index by 1.50%, and the ChiNext Index by 1.71%. Approximately 61% of stocks in the market rose, with a total trading volume of about 21,259.27 billion yuan, which was an increase of around 3,172.04 billion yuan from the previous day. The computing hardware sector led the market, with strong performances in PCB and copper-clad board concepts, resulting in multiple stocks like Goldenmax International, Epoxy Base Electronic Material Corporation, and Yangtze Optical Fibre And Cable Joint Stock hitting their daily limits. Additionally, NVIDIA reported overnight that its revenue for the second quarter of fiscal year 2027 was approximately $96.2 billion, a year-on-year increase of 106%, and provided guidance of a median revenue of $108 billion for the upcoming quarter, nearly a 90% year-on-year growth. The storage chip sector also saw strength, with Shenzhen Techwinsemi Technology hitting the limit up, and Dapumei up by 20CM. Dapumei announced on August 26 that it secured $515 million in enterprise-level PCIe SSD sales orders, while the export price of Korean DRAM skyrocketed by 401% year-on-year. The seed and grain sector continued to perform strongly, with stocks like Xinjiang Talimu Agriculture Development, Wanxiang Doneed, Jinjian Cereals Industry, and Xinjiang Sailimu Modern Agriculture hitting limit up. Notably, the global food price index rose for three consecutive months in July, and the global corn inventory-to-consumption ratio fell to its lowest level in nearly a decade. The gold sector also saw gains, with Shenzhen China Bicycle achieving six consecutive limit ups. Meanwhile, the photovoltaic equipment sector lagged behind, with Sungrow Power Supply dropping by 12.24% after the U.S. president signed an executive order on August 26, banning the procurement of certain foreign-manufactured large power system equipment. Hot Sectors 1. **Computing Hardware**: The PCB and copper-clad board concepts saw a comprehensive upswing, with copper-clad boards rising by 7.92%, components up 5.09%, and non-metallic materials jumping 9.63%. Stocks such as Goldenmax International, Jiangsu Xiehe Electronic, Epoxy Base Electronic Material Corporation hit limit up, while Shengyi Electronics surged 14.32%, and Guangdong Kingshine Electronic Technology and Changzhou Zhongying Science & Technology gained over 10%. This surge was catalyzed by NVIDIA's overnight announcement of $96.2 billion in revenue for the second quarter of fiscal year 2027, a year-on-year increase of 106%, along with guidance of $108 billion in median revenue for the next quarter, nearly a 90% year-on-year increase, compounded with significant profit growth reported in the semi-annual reports of various PCB industry chain companies like Hengtong Optic-Electric and Shennan Circuits. 2. **Storage Chips**: The storage chip sector rose sharply, contributing to a 4.54% gain in the semiconductor sector as a whole. Shenzhen Techwinsemi Technology hit limit up, Dapumei and Sai MicroElectronics Inc. increased by 20CM limit up, with Zbit Semiconductor, Inc., Montage Technology, Maxio Technology, Shannon Semiconductor Technology, and others up by more than 6%. This rally was boosted by Dapumei's announcement on August 26 of securing $515 million (approximately 3.49 billion yuan) in enterprise-level PCIe SSD sales orders, alongside a 401% year-on-year rise in the export price of Korean DRAM, as well as plans from Samsung Electronics and SK Hynix to increase their supply of 8-layer HBM4 to NVIDIA in the second half of the year. 3. **Agriculture**: The agriculture and grain sectors continued their strong performance, with the agriculture sector rising by 4.39%. Stocks like Xinjiang Talimu Agriculture Development, Xinjiang Sailimu Modern Agriculture, Jinjian Cereals Industry, and Wanxiang Doneed hit limit up, while QIULE SEEDS, China Agriculture Development Seed Group, and Gansu Yasheng Industrial also rose. This was propelled by a global food price index of 131.1 points in July, marking three consecutive months of increases, and the corn inventory-to-consumption ratio dropping to a near-decade low of 17.9%. Additionally, the UK Meteorological Office forecasted that this year's El Nio could be the strongest since modern meteorological records began. Sector Adjustments Photovoltaic equipment, flavoring and fermentation products, white goods, grid equipment, banks, and liquor sectors experienced the biggest declines, with photovoltaic equipment falling by 2.33%, the largest drop among secondary industries. State-owned banks dropped by 1.16%, while joint-stock banks fell by 1.10%, and liquor declined by 0.80%. In the photovoltaic equipment sector, Sungrow Power Supply fell 12.24% with a trading volume of 14.133 billion yuan. News-wise, on August 26, the U.S. president signed Executive Order 14420, which prohibits the procurement or installation of certain foreign-manufactured large power system equipment and related software (including battery storage systems) in the U.S. under the guise of national security.