Broad Market Under Pressure, Indices in Correction
Influenced by overnight declines in U.S. stocks and weakness in the Hong Kong market, China's three major A-share indices opened lower and extended losses this morning. By the midday close, the Shanghai Composite Index fell 0.7%, the Shenzhen Component Index dropped 0.67%, and the ChiNext Index declined 0.96%. Trading volume shrank compared to the previous session, with over 2,600 stocks falling. Sectors such as oil & gas, shipping, photovoltaic equipment, and non-ferrous metals led the declines.
Structural Bright Spots: Semiconductors and Defense Outperform
Amid the broad sell-off, the semiconductor and defense sectors stood out as rare bright spots. The semiconductor sector continued its upward momentum from yesterday, with stocks like Wide Nano (688147.SH), Fortune Precision (688409.SH), and Centec Communications (688702.SH) leading the gains, reflecting sustained capital interest in import substitution and technological innovation. The defense sector benefited from a major technological breakthrough—China's first successful sea recovery of a rocket first-stage core—boosting industry sentiment.
Continuous AI Catalysts, Clear Long-Term Trend
Despite the market correction, significant news emerged from the AI sector. Ant Group open-sourced a trillion-parameter thinking model, while ByteDance's image generation model received a major upgrade. Concurrently, the stock price of Zhipu AI, the "world's first large model stock" listed in Hong Kong, hit a new high. These developments confirm the accelerating iteration of AI technology, providing solid support for the long-term growth of the related industrial chain. Industry experts also pointed out that serving China's space strategy is a significant opportunity for the photovoltaic sector, with the future "ground-space integrated" energy system worth anticipating.
Market Outlook: Focus on Policy and Earnings Inflection
The current market is in a phase of sentiment repair, facing both external disturbances and internal structural adjustments. As noted by Ren Zeping, monetary easing is a leading indicator for stock market rallies. While paying attention to short-term volatility, investors should focus more on "hard assets" that can weather cycles and industries representing future directions, such as AI, advanced manufacturing, and national defense. Building a market bottom takes time, requiring patience for the lagging signal of improved corporate earnings.
This article does not constitute any investment advice. The stock market involves risks, and investment requires caution!