A-shares midday | Technology sector makes a strong comeback, ChiNext rises 5.04%

According to Zhitong Finance APP, on July 31, the overnight surge in U.S. semiconductor stocks and the violent rebound in the Japanese and South Korean markets created a strong transmission effect, leading to a collective high opening of the three major A-share indices. After fluctuating higher in the early session, the gains narrowed as it approached noon. As of the midday close, the Shanghai Composite Index was at 3833.65 points, up 0.76%; the Shenzhen Component Index was at 13705.42 points, up 3.16%; the ChiNext Index was at 3408.15 points, up 5.04%; and the STAR 50 Index was at 1682.27 points, up 5.91%.

In the entire market, 4517 stocks rose, 903 fell, and 131 were flat, with 80 hitting the daily limit up and 0 hitting the daily limit down. The half-day trading volume was approximately 1.80 trillion yuan, an increase of about 340 billion yuan compared to the previous trading day (1.46 trillion yuan). Major funds net flowed into sectors such as electronics, semiconductors, and communications, while net outflows occurred in banking, food and beverage, and non-bank financial sectors; among them, the electronics sector saw a net inflow of over 31.1 billion yuan. The top net purchases were Dongshan Precision (3.34 billion), Zhongji Xuchuang, and Xinyi Sheng, while the top net sales were CATL (over 900 million), Kweichow Moutai, and China Yangtze Power. The median net inflow of major funds in the entire market was approximately 12.6 million yuan.

Market Overview

In the market, the technology sector rebounded across the board, with the overnight Philadelphia Semiconductor Index surging over 8% and the South Korean KOSPI Index soaring over 16%, creating a strong transmission effect. On the upside, memory chips opened significantly higher, leading the entire market, with Zhaoyi Innovation, Demingli, and Taiji Industry hitting the daily limit up; the CPO concept stocks collectively surged, with Robotech rising over 17%, Lianxun Instruments up over 15%, Xinyi Sheng up over 13%, Tianfu Communication up over 12%, and Zhongji Xuchuang up over 10%; multiple stocks in the AI application sector hit the daily limit up, including Kunlun Wanwei, Chinese Online, BlueFocus, and Yidian Tianxia; the computing power leasing concept expanded its gains, with Litong Electronics hitting the daily limit up, Hongjing Technology up 20%, and Meili Cloud, Yunsai Zhili, and others also hitting the daily limit up; the semiconductor equipment sector continued to strengthen, with Xianfeng Jingke, Zhongke Feice, and Tuo Jing Technology seeing multiple stocks rise over 10%.

On the downside, the banking sector fell against the trend, with Agricultural Bank down 4.36%, Bank of China and Bank of Communications down over 3.5%, Industrial and Commercial Bank down 3.56%, and China Construction Bank down 3.19%; the coal sector fell 1.01%, and the oil and petrochemical sector fell 0.87%. Overall, the clear pattern of a broad-based rise led by technology stocks was evident, with gains narrowing after an early session surge, and some stocks that hit the daily limit up in the morning (Zhaoyi Innovation, Demingli) saw a pullback during the session. Funds showed some differentiation before noon, but the overall market volume significantly expanded compared to yesterday.

Popular Sectors

Memory Chips: Zhaoyi Innovation, Demingli hit the daily limit up, with differentiation during the session

The memory chip sector opened significantly higher in the morning, with Zhaoyi Innovation, Demingli, and Taiji Industry hitting the daily limit up, while Zhaoyi Innovation and Demingli saw a pullback during the session; Puran Co. rose over 10%, and multiple stocks such as Beijing Junzheng, Baiwei Storage, Jiangbolong, and Dapu Micro saw significant increases. Changxin Technology rose over 13% during the session, with its total market value briefly exceeding 4 trillion yuan, and it was up over 8% by noon. In terms of consecutive limit-ups, Chuan Zhi Education hit the daily limit up, achieving five consecutive limit-ups Commentary: Overnight, the Philadelphia Semiconductor Index surged over 8%, with Microsoft soaring over 15%, marking its largest single-day gain since 2008. In the Asia-Pacific market, South Korea's KOSPI index skyrocketed over 16%, setting a record for the largest single-day intraday gain in history. SK Hynix rose over 27%, and Samsung Electronics increased over 24%, both triggering the temporary suspension mechanism of the Korean Exchange. Previously, Samsung Electronics had retraced over 42% from its peak, while SK Hynix had retraced over 54%. The extreme overselling, combined with the sustained demand in the AI industry, has jointly propelled this strong rebound.

CPO Concept Collective Surge, Multiple Stocks Up Over 10%

The CPO concept saw a collective surge, with Robotech rising over 17%, Lianxun Instruments up over 15%, Taichengguang increasing over 13%, Xinyi Sheng up over 13%, Tianfu Communication rising over 12%, and Zhongji Xuchuang up over 10%; Keri Technology, Kuaike Intelligent, and Taijing Technology hit the daily limit.

Commentary: Overnight, Amazon released its financial report, with CEO Andy Jassy stating that the company's capital expenditure is expected to reach $220 billion this year, up from the previous forecasts of $200 billion made in February and April. The upward adjustment in capital expenditure reinforces expectations for continued growth in AI computing infrastructure demand, directly benefiting the optical communication industry chain. Microsoft's better-than-expected financial report has also reshaped market confidence in AI investment returns, leading to a broad recovery in the US AI computing chain.

AI Applications: Multiple Stocks Hit Daily Limit of 20cm

AI applications saw another surge during the trading session, with Kunlun Wanwei, Chinese Online, BlueFocus Communication, Yidian Tianxia, and Rongxin Culture hitting the daily limit of 20cm. Wansheng Technology, Dingjie Smart, and over 30 other stocks rose over 10%. The advertising and marketing sector also strengthened, with BlueFocus Communication and Liou Co., Ltd. hitting the daily limit, while Shengguang Group saw significant gains.

Commentary: In terms of news, Kimi AI released the Kimi K3 model weights and open-sourced key Infra technologies. The Dark Side of the Moon has sent a listing proposal to investors, expecting to complete its Hong Kong listing within six months at the earliest. OpenAI announced today (31st) a significant price reduction for the GPT-5.6 series models, with Luna seeing an 80% drop, further lowering the cost of AI application implementation. Additionally, the State Administration for Market Regulation and five other departments issued the "Opinions on Promoting High-Quality Development of the Advertising Industry in the New Era" in May, clearly promoting the deep integration of AI and the advertising industry and supporting domestic brands in overseas marketing, bringing multiple benefits to the advertising and marketing sector during the peak summer brand launch season.

Computing Power Leasing: Surge Expands, Multiple Stocks Hit Daily Limit

The computing power leasing concept saw an expanded surge during the trading session, with Litong Electronics hitting the daily limit, Hongjing Technology up 20cm, Meili Cloud and Yunsai Zhili hitting the daily limit, Xiechuang Data rising over 16%, and Dongyangguang, Youkede, and Wangsu Technology all seeing significant increases.

Commentary: In terms of news, Beijing is accelerating the creation of a new form of intelligent economy and is about to formulate Token economic development policies, focusing on key aspects such as Token production, distribution, and application, planning to build "Token factories" and distribution platforms, aiming to break through a total computing power scale of 130,000 P within the year. Additionally, the People's Bank of China and nine other departments jointly issued the "Notice on Strengthening Data Development and Utilization in the Field of Science and Technology Finance," proposing to carry out pilot projects for innovative development of trustworthy data spaces in science and technology finance, achieving cross-domain sharing and efficient docking of data resources in the field