A-share market rebounded strongly! The financial and energy sectors are bright, the concept of online games has exploded, and the real estate sector as a whole has picked up.

As soon as the A-share market changed its depressed state a few days ago, the major indexes rose one after another. By midday, the Shanghai Composite Index rose 1.04% to 2,880.23 points, the Shenzhen Component Index rose 1.07% to 8,400.12 points, and the Growth Enterprise Market Index rose 0.99% to 1,599.96 points. The market turnover reached 396.5 billion yuan, with more than 4,300 stocks rising.

During the morning trading session, the coal, insurance and brokerage sectors in the A-share market were among the top gainers. Six stocks in the online game sector have daily limit, and the concept sectors such as short play, virtual human and AIGC have also risen. Among the 31 first-class industries, the main funds of electronics, media, non-bank finance, power equipment, automobiles and other industries all flowed in net.

This morning, the People’s Bank of China conducted a 7-day reverse repurchase operation of 577.7 billion yuan with an operating interest rate of 1.70% in order to hedge against the impact of the expiration of the Medium Term Loan Facility (MLF), the peak tax period and the payment of government bonds. MLF, which expires today, will be renewed on August 26th.

Financial and energy sectors performed brilliantly.

After the opening of the brokerage sector, it continued to rise. Guosheng Financial Holdings once had a daily limit, and closed up more than 8% at noon. Haitong Securities, TF Securities Securities and Pacific Securities also rose to varying degrees.

Financial technology ETFs also rose significantly, with its Chungbo CSI financial technology theme ETF rising by 2.2%, Bosera financial technology ETF rising by 1.94% and Huaxia CSI financial technology theme ETF rising by 1.67%.

In the energy sector, coal stocks are red in a large area, and Lu ‘an Huaneng, Jinkong Coal, Shanxi Coking Coal and Shaanxi Coal rose by more than 3%. The construction machinery sector rose as a whole, with Anhui Heli, Hangcha Group and Nanfeng shares rising more than 5% in intraday trading, while Xugong Machinery, Zoomlion and Sany Heavy Industry rose more than 2%.

According to the Shanghai Securities Research Report, with the steady progress of the equipment renewal policy and the formation of physical workload of national debt projects, the domestic construction machinery market is expected to continue to repair. At the same time, domestic brands continue to strengthen the layout of overseas channels and accelerate the globalization trend of supply chain. Overseas markets have become the main driving force for the growth of construction machinery industry, and OEMs with global layout are expected to benefit.

The concept of online games broke out, the concept of monkeypox rose sharply, and the real estate sector picked up.

Online game concept stocks broke out, Fuchun shares rushed to the 20CM daily limit, day boat culture rose by nearly 19%, Dasheng culture, national culture, celebrity health, Caesar culture and other stocks went up, while Zhongguang Natural Selection, Shanghai Film and other stocks hit the daily limit. Recently, "Black Myth: Wukong" officially opened the PC version of the performance test tool download on the Steam platform, and the game will be officially released on August 20, with a hot pre-sale situation and sales exceeding 100 million yuan.

The pharmaceutical sector was active in early trading, with Haichen Pharmaceutical’s 20% daily limit, Asia-Pacific Pharmaceutical’s 10% daily limit and West Point Pharmaceutical rising. According to reports, Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization (WHO), announced that the epidemic situation of monkeypox mutant strain that is spreading rapidly in Africa constitutes a "public health emergency of international concern", which is the highest-level global epidemic alert under the framework of the International Health Regulations. To this end, WHO initiated the emergency use list procedure of monkeypox vaccine, requiring monkeypox vaccine manufacturers to submit a letter of intent for emergency use list to speed up the supply of vaccine.

The A-share real estate sector recovered as a whole, and Jintou City opened its daily limit, with gemdale and World Bank among the top gainers. According to the spokesperson of the National Bureau of Statistics, the main data in the real estate sector in July showed that under the influence of a series of policies, the decline of some real estate-related indicators continued to narrow, but the real estate market as a whole was still in adjustment. The government will continue to take measures to promote the stable and healthy development of the real estate market.

In terms of Hong Kong stocks, China Aoyuan rose sharply after the opening, with intraday gains exceeding 28% and midday closing gains exceeding 26%. According to the announcement of China Olympic Park, it is estimated that the first half of 2024 will record a net profit of 21 billion to 23 billion yuan, compared with a loss of 2.9 billion yuan in the same period last year. The sharp increase in profits was mainly due to the fact that the company completed the restructuring of overseas debts and recorded the restructuring income. After removing the impact of restructuring income, China Aoyuan still recorded a loss in the first half of this year, mainly due to the continuous decline in the industry operating environment, the decrease in delivery volume, which led to a decrease in property sales revenue recognition and an increase in financing costs.

More than one rising stock suggests risk.

Recently, many stocks in large infrastructure, consumer electronics, medicine and other sectors have been connected. On the basis of three consecutive 20% daily limit, Doctor Glasses hit the daily limit again today, and closed up more than 18% at noon. Jinlong Automobile’s share price rose sharply due to news related to driverless driving, with an increase of more than 100% since July 9.

However, Jinlong Automobile said that the sales revenue of driverless buses in 2023 was relatively small, accounting for only 0.3% of the company’s operating income. In addition, Star Network Yuda continued its daily limit on August 13th and 14th, but once fell by nearly 10% on the 15th. On August 12th, Guangshengtang announced that its innovative drug GST-HG141 for hepatitis B treatment had obtained the preliminary results of phase II clinical trial, which aroused widespread concern in the market.

This article comes from: financial circles

Author: Gui Lin