A-share closing review | Index jointly adjusted! Shanghai index fell by 1.52%, banking stocks active against the trend

Today, the market saw a volume adjustment with all three major indexes collectively closing lower. Funds shifted between high and low, with defensive sectors such as banks, consumer goods, and pork showing strong activity against the trend. The market had a total turnover of 3.3 trillion RMB, with over 4300 stocks in both markets decreasing. Looking at sectors, the consumer goods sector was active, with the pork concept showing strength. Tech-bank Food4, TianYu Bio-Technology, Zhejiang Huatong Meat Products, and Yunnan Shennong Agricultural Industry Group all hit the limit up. The liquor concept rose during trading, with Gansu Huangtai Wine-Marketing Industry and Anhui Golden Seed Winery hitting the limit up. The chemical sector was active against the trend, with Guangdong Redwall New Materials and Hongbaoli Group Corporation, Ltd. hitting the limit up. The silicon carbide concept shook and rose, with SICC Co., Ltd. and KCXC, Crystal Growth & Energy Equipment Inc. hitting the limit up. On the downside, the gas turbine concept saw a volatile adjustment, with Allied Machinery hitting the limit down. The power grid equipment sector continued to weaken during trading, with Henan Tong-Da Cable hitting the limit down. Looking ahead, CICC released a research report stating that in the medium term, they are optimistic about the A-share market continuing its trend of volatile upward movement, with the overall valuation of the A-share market still at a reasonable level. The restructuring of the international order resonating with China's industrial innovation trends is the core DRIVE behind the current market rally, and the A-share market is expected to remain stable and continue since 924. In terms of individual stocks, there were 1047 gainers and 4387 losers in both markets, with 81 stocks remaining unchanged. There were a total of 82 limit up stocks and 48 limit down stocks. At the close, the Shanghai Composite Index fell by 1.52% to 4177.92 points, with a turnover of 149.81 billion RMB; the Shenzhen Component Index fell by 2.14% to 15745.74 points, with a turnover of 186.41 billion RMB. The ChiNext Index fell by 2.16% to 3951.14 points. Capital flow Today, the main funds focused on breeding, banks, and chemical products, with top net inflows into stocks including Lingyi Itech, GCL System Integration Technology, and Zhongji Innolight. News review 1. The Ministry of Industry and Information Technology's Energy Conservation and Comprehensive Utilization Department conducted research and discussions on the recycling and utilization of new energy vehicle power batteries. According to the Ministry of Industry and Information Technology, from May 12 to 13, 2026, the Energy Conservation and Comprehensive Utilization Department's main officials led a team to conduct research on the recycling and utilization of new energy vehicle power batteries in Guangzhou and Shenzhen in Guangdong Province, and held discussions with key enterprises and experts in the industry to listen to their opinions and suggestions. Institutes such as Cidui Research Institute, China Resource Recycling Group, and the Guangdong Provincial Department of Industry and Information Technology participated in the research activities. 2. China's commercial liquid oxygen methane rocket enters the phase of large-scale application. At 11:00 on May 14, Zhuque 2 improved Long March 5 carrier rocket was successfully launched from the Dongfeng Commercial Space Innovation Test Area. The carrier rocket flew normally throughout the flight, and the second stage entered the designated orbit, achieving a complete success in the flight test mission. This mission was the 7th flight of the Zhuque 2 carrier rocket. The rocket successfully launched today is the first test flight of the improved Long March 5 carrier rocket, which has upgraded multiple technologies and marks the entry of China's commercial liquid oxygen methane rocket into the phase of large-scale application. Predictions for the future market 1. CICC: Optimistic about the A-share market continuing the trend of volatile upward movement, focusing on prosperity growth and cyclical improvement. CICC's research report stated that both the All A Index and the ChiNext Index reached historical new highs today, and the "924 market" in A-shares has continued for nearly two years. In the medium term, the bank is optimistic about the A-share market continuing its trend of volatile upward movement, with the overall valuation of the A-share market still at a reasonable level. The restructuring of the international order resonating with China's industrial innovation trends is the core DRIVE behind the current market rally and the revaluation of Chinese assets. The stable situation in the A-share market since 924 is expected to continue. In terms of allocation, prosperity growth is still advantageous in 2026, but relative performance with other sectors may converge. After experiencing the three-year de-capacity cycle, combined with policies such as "anti-inner cycling," more and more cyclical industries are expected to benefit from supply-demand rebalancing. It is recommended to focus on prosperity growth and cyclical improvement themes. 2. China Securities Co., Ltd.: A-share market will experience a structural slow bull market in the second half of the year. On May 14, China Securities Co., Ltd. stated in a research report that in the second half of 2026, the A-share market will experience a structural slow bull market, driven by structural prosperity and fund hoarding. They suggest investors follow an investment strategy based on "prosperity," focusing on the two major themes of "computing power bull" and "recovery bull." The AI computing power theme is far from being in a full-blown bubble stage, and attention should be paid to the diffusion of the entire industry chain's prosperity. The "recovery bull" driven by "PPI-external demand" is another key theme for this year. 3. CITIC SEC: The A-share market's technology and energy industries are expected to maintain a high level of prosperity. CITIC SEC's research report stated that in China, GDP growth in the first quarter exceeded expectations, with overall economic performance achieving a "good start," and exports and PPI being the major structural features. They expect no need for additional total policy adjustments, with structural policies focusing on supporting technological innovation and "anti-inner cycling." Overseas, the US economy continues to cool down, the European energy impact is changing growth expectations, and Japan's imported inflation brings economic uncertainty. They predict that after Washington takes office as the Federal Reserve Chairman in May, there will be a rate cut in the second half of the year, and the Bank of Japan may raise interest rates by 25bps in June. In terms of asset allocation, the A-share market's technology and energy industries are expected to maintain a high level of prosperity, and government bond rates may fluctuate at low levels, with caution advised for foreign bonds.