On Wednesday, the A-share market showed extreme differentiation. Thanks to the strength of hard technology stocks represented by memory chips, the Science and Technology 50 Index bucked the trend and rose. However, major stock indexes such as the ChiNext Index and the Shenzhen Component Index continued to fall, and the Prev Index barely guarded the 3,200-point mark. AI concept stocks continued to be active against the trend, led by state-owned cloud and data, and computing power concept stocks rose again. In late trading, the adjustment of MSCI constituent stocks took effect, and a number of individual stocks changed in late trading.
As of yesterday’s close, the Shanghai Composite Index fell 0.61% to 3204.56 points; the Science and Technology Innovation 50 Index rose 0.91% to 1053.91 points; the Shenzhen Component Index fell 0.7% to 10793.85 points; the ChiNext Index fell 1.14% to 2193.41 points. So far, the A-share market in May has come to an end with a sharp drop: the Shanghai Composite Index fell 3.57%, the Shenzhen Component Index fell 4.8%, and the ChiNext Index fell 5.65%. In May, the cumulative reduction of northbound funds exceeded 12 billion yuan, showing a net selling trend for two consecutive months.
Memory chip concept plate pulls up
Yesterday, the state-owned cloud, information security and other digital economy directions led the rise. Tongniu Information had a daily limit of 20%, and Shensangda A, COSCO Haike, Qiming Information, etc. had a daily limit. The General Office of the Beijing Municipal People's Government issued "Several Measures for Beijing to Promote the Innovation and Development of General Artificial Intelligence", proposing 21 measures to improve the ability to coordinate the supply of computing resources and improve the supply of high-quality data elements.
Yesterday, the concept of computing power continued to be strong. The science and technology innovation board Obi Zhongguang received a 20% daily limit, Hongbo shares, Jingwang Electronics daily limit, Capital Online, Zhongke Chuangda, and Victory Giant Technology were among the top gainers. Recently, Nvidia released a financial report that far exceeded expectations, and its stock price continued to strengthen, and its market value once exceeded $1 trillion. A-share related concept stocks have also shown a strong continuity.
The concept of memory chips rose rapidly yesterday afternoon and led to a significant recovery in market sentiment. As of the close, Biwin Storage’s 20% daily limit was reported at 99.32 yuan; Ruineng Technology’s daily limit, Wanrun Technology, and Longsys were active.
Hong Kong Union Securities believes that in the long run, China's memory chip manufacturers will benefit from the incremental demand brought about by the wave of artificial intelligence.
Changes in late-day call auctions for multiple stocks
Yesterday, many individual stocks changed their bids in late trading, and Emma Technology, Giant Network, Defang Nano, Huagong Technology, Spring Airlines, etc. all rose sharply.
On the news, MSCI announced the quarterly adjustment results of the global index series in May, which will come into effect after the market closes on May 31. During this adjustment, 86 new stocks were added to the MSCI Global Standard Index, including 51 A-shares; 39 stocks were removed at the same time, including 13 A-shares.
This adjustment of MSCI also triggered a change in northbound funds. The data shows that on May 31, the northbound funds once sold more than 6 billion yuan in net sales, and there was a significant return towards the end of the day, and finally sold 3.798 billion yuan in net sales throughout the day. Among them, the Shenzhen Stock Connect net sold 2.569 billion yuan, and the Shanghai Stock Connect net sold 1.229 billion yuan.
The cumulative net sales of northbound funds in May was 12.136 billion yuan. Among them, Shanghai Stock Connect has a total net purchase of 2.6 billion yuan, and Shenzhen Stock Connect has a total net sale of 14.736 billion yuan.
The characteristics of the stock game are obvious
How will A shares be interpreted in the market outlook?
Hong Kong Union Securities said that the current market has obvious characteristics of stock games, and the market has increased its attention to performance. The allocation thinking should focus on the direction of low congestion and economic recovery. The allocation direction includes the subdivision of the large consumer sector, the bottom improvement of the manufacturing sector, and the undervalued pro-cyclical state-owned enterprise sector.
In terms of hot spots in the market outlook, Guosheng Securities believes that with the strengthening of the concept of computing power, the popularity of the concept of AI has picked up, and the direction of AI computing power may continue to use trend-following strategies to participate. At the same time, the main line of "China Special Evaluation" may return again.
Hong Kong United Securities recommends continuing to pay attention to conceptual sectors such as semiconductors, computing power, and "China Special Evaluation". With the layout of AI large models and the construction of digital industrialization in various places, it is expected to bring certainty and high growth space for related infrastructure, and the fields of computing power, optical modules, and servers are expected to maintain a high degree of prosperity. The improvement of the localization rate in the field of semiconductor chips is a major trend, and all links including semiconductor equipment, materials, design, and manufacturing need to make up for shortcomings. In addition, the "China Special Estimation" concept sector can also be deployed on dips.