A-share market opening express | A-shares continue to rebound! The ChiNext Index rises over 1%, and pharmaceutical stocks are collectively strong.

On August 19, the A-shares continued to rebound in the morning session. As of 9:45, the Shanghai Composite Index rose by 0.44%, the Shenzhen Component Index rose by 0.57%, and the ChiNext Index rose by 1.04%. In terms of the market, pharmaceutical stocks were strong, with innovative drugs leading the way. Chimin Health Management hit the limit up; AI hardware stocks like CPO remained strong, with Eoptolink Technology Inc., and Zhongji Innolight hitting historical highs. On the downside, the film and media sectors saw a pullback, while the military, banking, oil and gas, and wind power sectors were among the top decliners. Looking ahead, Shenwan Hongyuan Group believes that in the short term, the bull market atmosphere will continue to dominate the market. Asset allocation is key before the beginning of September, focusing on securities, insurance, military, and rare earths. The pharmaceutical and overseas computing power scarcity sectors are still expected to have momentum. Hot Sectors: 1. Innovative drug sector on the rise The innovative drug sector surged, with Chimin Health Management, Jiangsu Kanion Pharmaceutical hitting the limit up, and NORTHLAND-BIO, Hefei Lifeon Pharmaceutical, Maiwei Biology, Wuhan Hiteck Biological Pharma, Guiyang Xintian Pharmaceutical, etc., all rising. 2. CPO concept remains strong CPO concept stocks remained strong, with Eoptolink Technology Inc., and Zhongji Innolight hitting historical highs, Cig Shanghai hit the limit up, and Optowide Technologies, Sai MicroElectronics Inc., Wuxi Taclink Optoelectronics Technology, etc., all followed suit. Institutional Views: 1. Shenwan Hongyuan Group: Short-term bull market atmosphere continues to dominate the market Shenwan Hongyuan Group believes that in the short term, the bull market atmosphere will continue to dominate the market. Before the beginning of September, the focus will be on securities, insurance, military, and rare earths. The pharmaceutical and overseas computing power scarcity sectors are still expected to have momentum. The key is to build a price alliance in China's manufacturing sector, especially in the areas of photovoltaics, chemicals, and key parts of some electrical machinery. 2. Huatai: Currently in the mid-term bull market Huatai believes that the market is currently in the mid-term of a bull market. The structural features of this year's uptrend market show that sector rotation is fast-paced and difficult to grasp the rhythm. This year's slow bull market has shown a slow rise and sharp fall characteristic, which can help prolong the uptrend cycle and favor the formation of a slow bull market. 3. Orient: No major adjustment risk for stock indices in August Orient believes that this round of the market shows a "local breakthrough, multi-point flowering" characteristic, and opportunities in various industries, sectors, and themes will continue to rotate. In the short term, there is no major adjustment risk for stock indices in August, but one should be cautious about the impact of high-rise stocks if the market experiences a pullback. It is recommended to continue focusing on trends in technology self-reliance, innovative drugs, military, Siasun Robot & Automation, etc.