A-share market closing report | A-share market rebounded sharply! Semiconductor stocks leading the charge, Kechuang 50 index closing up 3.81%

On May 19, A-shares hit bottom and rebounded throughout the day, with the Sci-Tech Innovation 50 Index rising nearly 4%. By the close, the Shanghai Composite Index rose 0.92%, the Shenzhen Component Index rose 0.26%, the ChiNext Index fell 0.16%, and the Sci-Tech Innovation 50 Index rose 3.81%. The total trading volume of the Shanghai and Shenzhen stock markets was 2.89 trillion yuan, a decrease of 74 billion yuan from the previous trading day. In terms of the market, the semiconductor chip industry chain hit bottom and rebounded, with multiple stocks such as Nextool Technology, Acter Technology Integration Group, and Hangzhou Lion Microelectronics hitting the daily limit. The electric power sector continued to rise, with more than ten component stocks such as Shanghai Electric Power and Chongqing Fuling Electric Power Industrial hitting the daily limit. The electric grid equipment concept fluctuated and strengthened, with stocks like Newonder Special Electric and Sunway Co., Ltd. hitting the daily limit. The optical module concept also fluctuated and rebounded, with Xiamen Guang Pu Electronics hitting the daily limit. There was also fluctuation in the PCB concept, with stocks like Baoding Technology and Ganzhou Yihao New Materials hitting the daily limit. The Siasun Robot & Automation concept continued to strengthen, with multiple stocks like BZS and Zhejiang Fulai New Material hitting the daily limit. The computing power leasing concept remained strong, with stocks like Linewell Software, Bestlink Technologies, and Xiamen Hongxin Electronics Technology Group Inc. hitting the daily limit. AI applications, such as cultural media and gaming, were also active, with stocks like Jishi Media and Shanghai Fengyuzhu Culture Technology hitting the daily limit. In terms of declines, rare earth and non-ferrous metal concepts continued to adjust, with stocks like Guangdong Xianglu Tungsten and Shanghai Rychen Technologies falling by more than 5%. Lithium mining stocks fluctuated lower, with Jinyuan EP Co.,Ltd. falling by nearly 7%. The commercial aerospace concept also fluctuated lower, with China Spacesat and Shanghai Geoharbour Construction Group Co., Ltd. hitting the limit down. The sports concept continued to decline, with stocks like Shuhua Sports and Guangdong Guangzhou Daily Media hitting the limit down. Chemical stocks showed a weaker trend, with Hubei Heyuan Gas Co.,Ltd. and Peric Special Gases falling by more than 5%. Looking ahead, China Securities Co., Ltd. believes that the new round of market trend may be characterized by slow and steady growth, making it difficult to replicate the strong main ascending rhythm seen in April and May. Guotai Haitong has released a research report suggesting to pay attention to opportunities in the commercial aerospace sector due to the intensive launch missions domestically and internationally. Popular Sectors: 1. Semiconductor leading the charge The semiconductor industry chain collectively strengthened, with Nextool Technology hitting a record high daily limit, and stocks like Hangzhou Lion Microelectronics, National Silicon Industry Group, and Acter Technology Integration Group also hitting the daily limit. Comment: Huatai believes that with the expansion of wafer fabs and storage companies, as well as the development of chips in new storage technologies, advanced processes, and advanced packaging, the global semiconductor materials market is expected to experience rapid growth. Currently, China's overall domestication rate of semiconductor materials remains low, but with the increasing demand for independent controllability and competitiveness of domestic enterprises, the domestication rate is expected to increase. 2. Electric power sector active The electric power sector was active, with Liaoning Energy Industry hitting the daily limit three times in five days, and stocks like Shanghai Electric Power and Inner Mongolia Mengdian Huaneng Thermal Power Corporation also hitting the daily limit. Comment: On the news front, the deputy secretary-general of the Shanghai Municipal Government and director of the Shanghai Development and Reform Commission proposed to promote the construction of a new power system to ensure energy security and create four 10-million-kilowatt green energy bases. 3. Strength in Siasun Robot & Automation concept The Siasun Robot & Automation concept remained strong, with BZS hitting the daily limit four times, and stocks like Shanghai Mechanical & Electrical Industry and Zhejiang Jingxing Paper Joint Stock also hitting the daily limit. Comment: According to data from the National Bureau of Statistics, in April, the output of Siasun Robot & Automation reducers and industrial Siasun Robot & Automation in China increased by 38.3% and 15.1% respectively. 4. AI application sector active The AI applications sector, including cultural media and gaming, remained active, with Jishi Media and Shanghai Fengyuzhu Culture Technology hitting the daily limit. Comment: According to ticketing platform data, the box office revenue for 2026 has exceeded 14.5 billion yuan. The continuous release of new films during the May Day holiday has led to a sustained long-tail effect, with films like "Love Letter to Grandma" topping the daily box office chart for nine consecutive days. Institutional Views: China Securities Co., Ltd.: The new round of market trends may be characterized by slow and steady growth Looking ahead, the new round of market trends may be characterized by slow and steady growth, making it difficult to replicate the strong main ascending rhythm seen in April and May. The focus of investment remains on two main core areas: one is high-quality tracks with stable performance and solid fundamentals, and the other is hot topics supported by policies. In May, sectors like commercial aerospace, domestic computing power, AI, and electric power have performed well, while other sectors have yet to see rotation and catch-up. As funds gradually shift from differentiated adjustment to hard AI technology tracks, the market funds are expected to move towards low-level themes, focusing on potential stocks with low positions, policy support, and industrial catalysis. Galaxy Securities: Cloud service industry enters a period of high demand and resonant growth in quantity and price Galaxy Securities released a research report stating that the consumption of word elements continues to rise, corresponding to the large-scale volume increase in AI reasoning demand in the whole society, which is a certainty for cloud service providers like Alibaba Cloud. As word elements become the unified value settlement unit in the intelligent era, the cloud computing business model is undergoing a fundamental restructuring, gradually moving away from the traditional IaaS model of server leasing and duration billing, and fully transitioning to an intelligent service-based MaaS variable billing system centered on word element consumption. This will drive high-margin AI service revenue expansion for cloud providers, optimize the overall profit structure, and usher the industry into a period of high demand and resonant growth in quantity and price. Guotai Haitong: Bullish on Siasun Robot & Automation, semiconductor equipment, and commercial aerospace Guotai Haitong released a research report suggesting to pay attention to opportunities in the commercial aerospace sector due to the intensive launch missions domestically and internationally. In terms of Siasun Robot & Automation, the third generation humanoid Siasun Robot & Automation Optimus V3 (Optimus Prime 3) from Tesla is expected to debut in mid-year, with formal production scheduled for July-August 2026 and steady progress in product testing, expected to be applied in external scenarios in 2027. Currently, including enterprises like Figure AI, 1X Technologies, and Yushu Technology have also launched iterative products, but the industry as a whole is still in the "small-scale trial" stage. In semiconductor equipment, Semiconductor Manufacturing International Corporation has raised its Q2 guidance and is optimistic about the future, with SICC Co., Ltd. SiC shipments significantly increasing and exhibiting positive outlook for use in data centers. This article is reprinted from "Tencent Stock Selection", edited by GMTEight: Chen Xiaoyi.