A-share Midday Review | Shanghai Composite Index rises 0.27%, innovative drugs and CRO concepts strengthen, STAR 50 falls over 2%

Title context: A-share Midday Review | Shanghai Composite Index rises 0.27%, innovative drugs and CRO concepts strengthen, STAR 50 falls over 2% Text: On September 30, the three major A-share indices opened higher collectively, then diverged after an intraday surge. The Shanghai Composite Index fluctuated in positive territory, while the Shenzhen Component Index and ChiNext Index turned negative successively. The market showed structural characteristics of "pharmaceuticals leading gains, technology pulling back, and themes rotating rapidly." As of the midday close, the Shanghai Composite Index rose 0.27% to 3,840.83 points, the Shenzhen Component Index fell 0.06% to 12,894.61 points, and the ChiNext Index fell 0.17% to 3,137.11 points; the STAR 50 fell 2.09%. In the Shanghai and Shenzhen markets, 2,623 stocks rose and 2,743 stocks fell. Half-day turnover in the Shanghai and Shenzhen markets was 909.3 billion yuan, an increase of 33.1 billion yuan from the previous trading day. On the capital front, in the morning session, main funds recorded net inflows into sectors such as pharmaceuticals, chemical pharmaceuticals, and optical optoelectronics, and net outflows from sectors such as electronics, semiconductors, and computers, with the electronics sector seeing net outflows of more than 7.2 billion yuan. Market Overview On the board, on the upside, pharmaceutical directions such as innovative drugs, CRO, and biological products led gains, while the planting industry and commercial vehicle sectors were among the top gainers; stocks in theme directions such as Siasun Robot&Automation and disperse dyes were repeatedly active. On the downside, the semiconductor and electronics sectors were among the biggest decliners. The real estate sector underwent a sharp correction in the morning session, with multiple stocks in the sector hitting the limit down at one point, before fluctuating upward. ShenZhen Properties & Resources Development(Group)Ltd. staged a "floor-to-ceiling board" move, while Zhongtian Service and Shanghai Lujiazui Finance & Trade Zone Development hit the limit up. Overall, on the last trading day before the holiday, market themes rotated rapidly, main funds concentrated toward the pharmaceutical direction, technology sectors such as semiconductors came under pressure, and market-wide turnover increased slightly from the previous trading day. Hot Sectors 1. Innovative drug and CRO concepts strengthened collectively Innovative drug and CRO concepts extended gains during the session. CanSino Biologics Inc. and Tainomab hit the 20CM limit up, Joinn Laboratories, Ningbo Menovo Pharmaceutical, Beijing Konruns Pharmaceutical, and Beijing Aosaikang Pharmaceutical hit the limit up, Shanghai Model Organisms Center, Inc. rose more than 18%, Novoprotein Scientific Inc. rose more than 13%, and Acrobiosystems rose more than 10%. Comment: On the news front, on September 29, AKESO's overseas partner Summit announced that AstraZeneca will make a strategic equity investment of US$2 billion in Summit and lead the advancement of clinical research on ivonescimab combined with AstraZeneca's CLDN18.2 ADC drug for multiple gastrointestinal tumors. In addition, CanSino Biologics Inc. and Tianjin JenKem, a wholly owned subsidiary of JenKem Technology, signed a collaborative development agreement for an mRNA vaccine for glioblastoma (GBM). At the same time, multinational pharmaceutical companies continue to increase their bets on AI drug discovery. Swiss pharmaceutical giant Roche disclosed during an investor event that it will advance the construction of an autonomous artificial intelligence laboratory to accelerate new drug discovery. 2. The automobile sector surged intraday The automobile sector surged intraday. Anhui Jianghuai Automobile Group Corp.,Ltd. touched the limit up at one point during the session and rose more than 6% in the half-day, Songz Automobile Air Conditioning, Zhejiang Songyuan Automotive Safety Systems, and Dong Feng Electronic Technology hit the limit up, Nanjing Chervon Auto Precision Technology touched the limit up intraday, and Guangzhou Automobile Group and BAIC BluePark New Energy Technology surged. Comment: On the news front, Huawei Executive Director Yu Chengdong recently said that HIMA will allocate more resources and energy to further strengthen investment in the "four realms" of Zunjie, Xiangjie, Zhijie, and Shangjie, and revealed that the Zunjie SUV model developed by Huawei in cooperation with Anhui Jianghuai Automobile Group Corp.,Ltd. is expected to go on sale in early 2027; Anhui Jianghuai Automobile Group Corp.,Ltd. Chairman Xiang Xingchu said that Zunjie's long-term investment in the ultra-luxury market will continue, and the product matrix will be further expanded in the future to cover more segments such as SUVs and sports luxury. 3. The yellow rice wine concept strengthened sharply The yellow rice wine concept opened higher and strengthened. Zhejiang Guyuelongshan Shaoxing Wine hit the limit up immediately after a high open, ShangHai JinFeng Wine rose more than 3%, and Kuaijishan Shaoxing Rice Wine rose more than 6% intraday before pulling back. Comment: On the news front, since the second quarter of this year, a number of major baijiu distributors have accelerated their layout in yellow rice wine channels. Kuaijishan Shaoxing Rice Wine successively signed with regional liquor distributors such as Henan Maowujian and Guangdong Guangxinghu Liquor Industry, while Zhejiang Guyuelongshan Shaoxing Wine joined hands with Beijing Sugar Tobacco and Wine Group to deepen the northern market; Zhejiang Guyuelongshan Shaoxing Wine disclosed that in the first half of the year, out-of-region markets accounted for more than 40%, with 102 new distributors added, and sales of the Qinghuazui series increased 35.2% year on year. In addition, the Ministry of Industry and Information Technology and five other departments previously issued the "Opinions on Promoting the High-Quality Development of Historical Classic Industries," proposing the cultivation of leading enterprises with a scale of 10 billion yuan. Yellow rice wine, as a historical classic industry, has attracted policy attention. 4. The solid-state battery direction remained active Stocks in the solid-state battery direction remained active. Jiangsu Transimage Technology, Zizhu Hi-Tech, and Shanghai Emperor of Cleaning Hi-Tech all recorded two consecutive limit-up boards, Sunyes Manufacturing and Jiangsu Lopal Tech. Group hit the limit up, and multiple stocks in the sector followed higher. Comment: On the news front, seven departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Transport jointly issued the "15th Five-Year Plan for the Development of the New Battery Industry" on September 28, proposing that by 2030 all-solid-state batteries will initially achieve large-scale application, the cycle life of long-life lithium batteries will reach 15,000 cycles, and the product defect rate of leading enterprises will reach the PPB level.