A-share market closing review | Index differentiation, Shanghai index rising, major financial stocks and other "old listed stocks" all exploded, market style clearly transformed

On July 1st, the three major A-share indexes were mixed, with the Growth Enterprise Market Index and the ChiNext 50 Index fluctuating. The yellow and white lines showed obvious differentiation, with the trend of heavyweight stocks relatively weak. By the closing bell, the Shanghai Composite Index rose by 0.44%, the Shenzhen Component Index fell by 0.53%, and the Growth Enterprise Market Index fell by 1.89%. The combined trading volume of the Shanghai and Shenzhen markets was 3.66 trillion, an increase of 386.2 billion from the previous trading day. On the market, as July begins, there is a clear change in market style, with institutions rebalancing strategies and small-cap stocks continuing to be strong, while large-cap stocks are showing weak trends. The financial sector led the gains, with multiple stocks hitting limit up, such as Tianfeng and SGSG Science & Technology. The pork concept continued to rise, with stocks like Fujian Aonong Biological Technology Group Incorporation, Shenzhen Kingsino Technology, Hunan New Wellful, Tech-bank Food hitting limit up, and DAYU BIOLOGICAL rising by over 26%. Dairy, retail, and liquor sectors all showed gains, with New Hope Liuhe, Anhui Golden Seed Winery hitting limit up. On the downside, the computing power chip concept saw fluctuations, with Verisilicon Microelectronics (Shanghai) Co., Ltd. and Cambricon falling. The PCB industry chain saw a general pullback, as did the concepts of MPO, optical chips, optical modules, and fiber optic cables. Inverter concepts saw declines, with Sungrow Power Supply seeing a large drop. In recent times, the "leader of the bull market" in the securities sector has continued to show unusual movements. Institutions have stated that the A-share market continues to see active trading, providing solid support for the upward trend in industry fundamentals. The valuations of various sectors are at historical lows, making sector allocation more cost-effective. Looking ahead, as July begins, the first half of the year has been dominated by extreme differentiation trends in the AI industry and financial market dynamics. With the arrival of the mid-year reporting season, new variables are expected. EB Securities believes that as the market continues to recover and trading remains active, with policy support in place and no major negative factors on the horizon, confidence in the market's "bottom index and multiple structural opportunities" is growing. As the July performance preview window approaches, market core logic is shifting from valuation expansion to performance verification. Hot sectors: 1. Securities sector saw a surge in activity The financial sector led gains, with stocks like Tianfeng and SGSG Science & Technology hitting limit up. 2. Pork concept continued to rise Stocks related to the pork concept continued to rise, with stocks like Fujian Aonong Biological Technology Group Incorporation, Shenzhen Kingsino Technology, Hunan New Wellful, Tech-bank Food hitting limit up, and DAYU BIOLOGICAL rising by over 26%. 3. Consumer goods concept saw gains Consumer goods sectors like dairy, retail, and liquor all showed gains, with stocks like New Hope Liuhe, Anhui Golden Seed Winery hitting limit up. 4. Computing power chip concept saw fluctuations Stocks related to the computing power chip concept saw fluctuations, with Verisilicon Microelectronics (Shanghai) Co., Ltd. and Cambricon falling. Institutional viewpoints: - Dongxing believes in the continued strength of the core trend of tech stocks led by AI, with the upward trend in tech stocks unchanged. - Tianfu Securities believes that the mid-term trend in the tech sector remains strong, focusing on stocks with reasonable valuations and performance that have not been over-extended. - EB Securities believes that the market may see continued fluctuations in the short term, with the market's focus shifting towards performance verification. - Cai Xin Securities believes that the market is in a transition phase, with liquidity-driven logic gradually giving way to industrial logic, and recommends a balanced allocation strategy. This article is translated from Tencent's stock selection platform, edited by Chen Siyu.