A-share market closing review | Shanghai Composite Index fell by 1.25%, technology stocks weakened significantly, and the banking sector bucked the trend to stabilize the market.

Today, the market fluctuated downward, with the Sci-Tech 50 Index falling over 6% and the Shanghai Composite Index briefly dropping over 2%. The market traded at 2.5 trillion throughout the day, with a volume increase of over 180 billion compared to the previous trading day, and nearly 3,000 stocks in decline. Looking at the market, previously strong technology stocks saw a significant decline, with computing power and semiconductor industry chains leading the drop, and Hashi Corp dropping over 10%. On the other hand, the new energy sector and consumer goods sector, which were relatively low, showed strong performance. The banking sector rose against the trend, with Agricultural Bank Of China hitting a historical high. Regarding the current market trend, Orient believes that overall, recent large-cap technology stocks have driven the index to quickly rise, but as the market style shifts from extreme consensus to rebalancing, the market has entered a period of high-level volatility in the short term. The fluctuations have widened, but adjustments are more structured and controlled, with clear features of high-low switching and industry rotation. The expected downturn is limited, but the upside is also weak. Looking at individual stocks, there were 2,297 gainers and 2,990 decliners in the two markets, with 140 remaining unchanged. There were a total of 44 stocks hitting the limit up and 48 stocks hitting the limit down. At the close, the Shanghai Composite Index fell by 1.25% to 3765.88 points, with a turnover of 1.1079 trillion yuan; the Shenzhen Component Index fell by 2.83% to 12118.70 points, with a turnover of 1.4364 trillion yuan. The ChiNext Index fell by 4.25% to 2776.25 points. Regarding fund movements, today's main capital focus was on retail, battery, and photovoltaic equipment sectors. The top stocks in terms of net inflows included Better Life Commercial ChainShare, Suzhou Victory Precision Manufacture, and TDG Holding. Major News Recap: 1. Two departments issued the "Action Plan for Stable Growth in the Electronic Information Manufacturing Industry 2025-2026". The Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth in the Electronic Information Manufacturing Industry 2025-2026", which sets out targets for 2025-2026. The plan expects the average growth rate of value added in the computer, communications, and other electronic equipment manufacturing industries above a designated scale to be around 7%. Additionally, with related areas such as lithium batteries, photovoltaics, and component manufacturing, the annual revenue growth rate of the electronic information manufacturing industry is expected to exceed 5%. By 2026, it is expected that revenue scale and export proportion will remain at the forefront of 41 major industries, with the revenue of the electronic information manufacturing industry in five provinces exceeding one trillion, the server industry scale surpassing 400 billion yuan, the domestic market penetration rate of 75-inch and above color TVs exceeding 40%, and personal computers and smartphones progressing towards intelligence and high-end. 2. National Energy Administration: Actively promote the development of deep-sea wind power and solar thermal power and other emerging industries by studying policy measures. According to the National Energy Administration, on August 29th, a video conference was held on the national renewable energy electricity development and construction (August) dispatch. The meeting emphasized the need to focus on four areas to adapt to new situations and requirements. Speed up the implementation of the "Notice on Deepening the Market-oriented Reform of New Energy On-grid Electricity Prices to Promote the High-Quality Development of New Energy." To achieve the "dual carbon" target, new energy must maintain a stable development pace and relatively fast development speed overall, and local authorities must quickly promote specific implementation plans, organize mechanism bidding for electricity prices, stabilize market expectations, and further create a favorable market environment. 3. In the second quarter of 2025, global smartwatch shipments increased by 8% year-on-year, and Huawei's smartwatch shipments surpassed Apple's for the first time. According to the Counterpoint Research "2025 Q2 Global Smartwatch Shipment Tracker" report, Huawei's smartwatch shipments surpassed Apple's for the first time in the quarter, successfully ranking first globally. The global smartwatch shipments in the quarter increased by 8% year-on-year, marking the first rebound after five consecutive quarters of decline since Q1 2024. The Chinese market played an important role in the growth this quarter. This recovery was mainly due to the continuous improvement in consumer demand, especially driven by brands such as Huawei, Xiaomi, and Xiaotiancai in the Chinese market. Future Market Analysis: 1. GF SEC: Recommends sticking to the main line of the technology industry GF SEC believes that for investors who already hold investments in the current bull market technology sector, there is not a strong need to participate in "high-low switching" at the current valuation differentiation level. It is recommended to continue to stick to the main line of the technology industry. On one hand, the overseas computing chain and innovative medicines are still in the process of the bull market industry main line, and on the other hand, the expectations of the domestic computing power, domestic AI infrastructure, and AI end applications industries are also on the mend. The previously recommended sci-tech chips, while late but arriving. 2. Soochow: In the second stage of the bull market, focus on high-odds trading in AI applications Soochow believes that in the current market environment with abundant volume, the main focus is on technology centered around AI. If there is a loosening of chips in the upstream hardware side (such as a 20% or so adjustment in core targets), then just a few events that can catch the market's attention sufficiently (such as H20 security issues and the FP8 of the DS model making the domestic computing power market from dark to bright) will trigger the strong elasticity of the low-level branches of AI internally. However, adding at that point will result in a loss of some odds, facing the same choice dilemma as 'whether to chase the rise of computing power' right now. Therefore, it is recommended to actively lay out downstream AI applications such as AI+ innovative pharmaceuticals, AI+ defense, AIGC, edge AI, humanoid Siasun Robot & Automation, and intelligent driving as a kind of "bullish option" based on medium-term industrial logic. 3. Orient: Expects a limited downturn in the market, but the upside is also weak Orient believes that overall, in the recent bull market, large-cap technology leaders have driven the index to rise rapidly. As the market style shifts from extreme consensus to rebalancing, the market has entered a period of high-level volatility in the short term. The fluctuations have widened, but adjustments are more structured and controlled, with clear features of high-low switching and industry rotation. The expected downturn is limited, but the upside is also weak, with the main oscillation range for the Shanghai Composite Index being 3750-3900. This article is reproduced from "Tencent Self-selected Stocks", GMTEight Editor: Liu Jiayin.