Midday Review: ChiNext Index Up Nearly 1%, Semiconductor and Other Sectors Rally, Computing Power Concepts Active

On the morning of the 18th, the Shanghai Composite Index fluctuated and declined, while the ChiNext Index rose strongly. Nearly 2,800 A-share stocks were in the red.

At midday, the Shanghai Composite fell 0.4%, the Shenzhen Component Index rose slightly by 0.05%, and the ChiNext Index increased by 0.89%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was approximately 1.25 trillion yuan.

In terms of sectors, oil, coal, real estate, and brewing industries declined, while non-ferrous metals, semiconductors, and electricity sectors rose. Storage chips, computing power, and CPO concepts were active.

Caitong Securities believes that in the short term, after significant adjustments in the three major indices, technical indicators show a further weakening trend. Coupled with ongoing uncertainties in the overseas energy supply crisis and the upcoming period of intensive earnings disclosures in the domestic A-share market, broad fluctuations in the A-share market will remain the main theme in the near future. In the medium term, driven by continued “double easing” of fiscal and monetary policies, persistent inflows of household savings into the market, improvements in corporate performance through anti-inflation measures, and ongoing breakthroughs in global AI technology, the foundation of this round of A-share market remains solid. It is expected that the current Middle East conflict will only affect short-term market sentiment and trading rhythm, without changing the market direction. Confidence in the medium- to long-term upward trend remains, and excessive worry is unwarranted.