Morning Report on A shares | Multiple news affecting the market! A shares surged and then fell back, with the Science and Technology Innovation 50 Index dropping by 3.67% in half a day, and the concept of innovative drugs remaining active.

On July 15th, A-shares rose and then fell back, with the three major indexes collectively turning green. Over 3600 stocks in the market were trading higher, with a total turnover of 1.7 trillion yuan in the morning session, compared to 898.4 billion yuan in turnover the previous day. By the midday close, the Shanghai Composite Index fell by 0.08%, the Shenzhen Component Index fell by 0.38%, the ChiNext Index fell by 0.36%, and the STAR 50 Index fell by 3.67%. Analysts believe that the following factors may have influenced the market today: 1. Incremental funds supporting the market. Improved liquidity expectations have led to some funds continuing to enter the market, providing a certain level of support for the downside of the indexes. 2. Concentrated profit-taking from previous gains. Some hot sectors had seen large increases in the past, leading to fund reductions at higher levels, which in turn suppressed the market's upward momentum. 3. Accelerated differentiation in mid-year performance expectations. As the disclosure window for mid-year reports approaches, funds are paying more attention to earnings certainty. Sectors with strong performance expectations are relatively active, while stocks with high valuations or questionable fundamentals are under pressure. 4. Rapid sector rotation. There has been a noticeable acceleration in the rotation of sectors such as technology, resources, finance, and defensive sectors. The market lacks sustained main themes, further exacerbating intraday fluctuations. At noon, hot spots were quickly rotating, with over 3600 stocks rising across the market. In terms of sectors, the pharmaceutical sector saw a surge, with over a dozen constituent stocks hitting the limit up. The liquor concept warmed up, with Anhui Golden Seed Winery hitting the limit up. The retail concept saw active movements, with Yinchuan Xinhua Commercial and Ningbo Zhongbai hitting the limit up. On the downside, the semiconductor industry chain collectively adjusted, with computing chips, storage chips, and semiconductor equipment leading the declines. Looking ahead, CMSC believes that July is a window of important domestic and international policy meetings combined with mid-year reports, creating expectations for market corrections and fluctuations. Hot sectors: 1. Rise in the pharmaceutical sector The innovative drug concept rose, with Harbin Pharmaceutical Group hitting the limit up, and other pharmaceutical companies following suit. 2. Rise in the film and television sector The film and television concept experienced a shake-up, with Ruyi Film Entertainment hitting the limit up. 3. Active performance in the retail sector The retail concept remained active, with Ningbo Zhongbai hitting the limit up. Institutional views: Huaan: The structural main line pattern is expected to continue until the end of the year, focus on two investment themes. Huatai: The current adjustment is due to overcrowding and the transition from mid-year reports to pricing adjustments, rather than a denial of industry logic. CMSC: July is a window of important domestic and international policy meetings combined with mid-year reports, creating expectations for market corrections and fluctuations.