A-shares at noon | The Shanghai Composite Index rose 0.42%, and the ChiNext Index increased by 1.61%. The pharmaceutical sector experienced a surge in computing power.

On August 13, the three major indices of A-shares opened higher collectively and fluctuated, with heavyweight stocks strengthening to drive the indices upwards. However, most individual stocks declined while few rose, leading to a divergent pattern of "index rises, individual stocks generally fall, and structural hotspots continue." By the end of the morning session, the Shanghai Composite Index was up 0.42% at 3963.15 points; the Shenzhen Component Index was up 0.73% at 14519.97 points; the ChiNext Index was up 1.61% at 3660.25 points. The Sci-Tech Innovation 50 increased by 1.90% to 1770.03 points. Across the market, 2287 individual stocks rose, while 3095 fell, with 56 hitting the daily limit. The total trading volume of the Shanghai and Shenzhen stock markets reached 1.59 trillion yuan, an increase of approximately 207.6 billion yuan compared to the previous trading day. Market Overview On the upside, the pharmaceutical and CRO sectors witnessed a collective breakout, with multiple stocks hitting the daily limit of a 20% increase; the computing power leasing concept maintained its strength, with Shanghai CDXJ Digital Technology achieving three consecutive limits; the CPO and optical communication concepts were active, with Suzhou TFC Optical Communication rising over 10%; the food and beverage sector remained active, with Royal Group Co., Ltd. and Zhejiang Yiming Food achieving four consecutive limits; the ultra-node concept showed a strong upward trend, with Shenzhen Gongjin Electronics hitting the limit. On the downside, the precious metals sector collectively declined, with Zhaojin International Gold and Hunan Silver falling over 5%; the oil and gas sector fluctuated lower, with Tong Petrotech Corp. dropping over 5%; the real estate sector corrected, led by CCCG Urban Development Holding Group. Overall, a clear divergence was observed between the yellow and white lines, with heavyweight stocks performing strongly while funds flowed out of cyclical sectors such as non-ferrous metals and into technology growth sectors including electronics, communications, and semiconductors. Data showed that major funds net flowed into the electronics, communications, and semiconductor sectors in the morning, while experiencing a net outflow from non-ferrous metals, industrial metals, and small metals, with the non-ferrous metals sector seeing a net outflow exceeding 8.2 billion yuan. Hot Sectors 1. Pharmaceutical/CRO Concept Collective Breakout The pharmaceutical and CRO sectors experienced a collective breakout in the morning, with Shanghai Model Organisms Center, Inc., Boji Medical Technology, Anhui Wanbang Pharmaceutical Technology, and Novoprotein Scientific Inc. hitting the limit with a 20% increase; Gansu Longshenrongfa Pharmaceutical Industry also reached the limit; Harbin Gloria Pharmaceuticals achieved four limits in five days, and Jilin Yatai saw three consecutive limits, while Shanghai Haoyuan Chemexpress, ChemPartner PharmaTech, Shanghai OPM Biosciences, and Biocytogen Pharmaceuticals were among the top gainers. Commentary: On the news front, with strong demand for new molecular types such as triple-target drugs, oral GLP-1, cyclic peptides, and small nucleic acids, coupled with the competitive advantages of Chinese companies in cost, response speed, and global delivery capability, the performance of CDMOs driven by external demand is expected to continue to materialize. Meanwhile, domestic innovation drug financing is gradually recovering, with a resurgence in biotech R&D activity, and the entry of AI drug development into commercial closed-loop verification is expected to benefit upstream protein synthesis and preclinical CRO segments first. Additionally, on August 10, three innovative drug outbound BD transactions were completed in one day, involving BeOne Medicines Ltd., INNOVENT BIO, and Gan & Lee Pharmaceuticals. 2. Computing Power Leasing Concept Maintains Strength The computing power leasing concept maintained its strength, with Shanghai CDXJ Digital Technology achieving three consecutive limits; Guangdong Qunxing Toys Joint-stock hitting the daily limit; Jiangsu Lettall Electronic reaching its limit; Leon Technology hitting the limit with a 20% increase; and Anhui Zhongding Sealing Parts, Xingyun Technology, Glory View Technology, Hongbo Co., Ltd., and others following suit. Commentary: On the news front, U.S. AI computing power leasing company Nebius reported second-quarter revenue of $582.3 million, a year-on-year increase of 454%, with its stock price rising over 34% overnight; CoreWeave's second-quarter revenue doubled to $2.58 billion, with its stock price rising over 19% overnight. It should be noted that Shanghai CDXJ Digital Technology announced on the evening of August 12 that its current main business is IDC investment and operation and comprehensive IDC solutions and that it has not yet engaged in computing power leasing. 3. Food and Beverage Sector Remains Active The food and beverage and dairy sectors remained active in the morning session, with Royal Group Co., Ltd. achieving four consecutive limits, Zhejiang Yiming Food also reaching four consecutive limits, Kuaijishan Shaoxing Rice Wine hitting the limit, and Panda Dairy Corporation, Weihai Baihe Biology Technological, Haoxiangni Health Food, among others, rising; the liquor sector fluctuated higher, with Shanxi Xinghuacun Fen Wine Factory increasing over 4%. Commentary: On the news front, data showed that on the first day of autumn (August 7), Luckin Coffee's "first cup of milk tea for autumn" reached sales of 25 million cups, a record high for single-day sales. Mixue Bingcheng also announced that its related sales refreshed the annual record. Multiple brokerages are optimistic about the upward trend in milk prices, with institutions indicating that since April, wholesale milk prices in some regions have surged, and the average price of raw milk in major producing areas has risen from the bottom, signaling a clear reversal for milk prices; institutions expect that supply and demand will basically balance by 2026, and the gap between supply and demand will widen again in 2027. 4. Ultra-Node Concept Fluctuates Strongly The ultra-node concept fluctuated strongly, with Shenzhen Gongjin Electronics hitting the limit, and Huaqin Co., Ltd., Jwipc Technology, Unisplendour Corporation, Fujian Star-net Communication, Ruijie Networks, Inspur Electronic Information Industry, among others, following suit. Commentary: On the news front, on August 12, Alibaba Cloud's Lingjun Zhenwu M890 ultra-node instances officially went online, with the first batch already available for sale in Ulanqab.