A-share market midday review: Multiple factors affecting the market! The index fell on shrinking volume, the Science and Technology Innovation 50 Index dropped more than 4%, and semiconductor stocks fell across the board.

On July 23, the three major indexes of A-shares collectively fell in the morning session. By midday closing, the Shanghai Composite Index fell by 0.19%, the Shenzhen Component Index fell by 0.19%, and the ChiNext Index fell by 0.33%. In addition, the STAR 50 Index fell by 4.09%. Most individual stocks in the market rose more than they fell, with over 3200 stocks rising. The turnover in Shanghai, Shenzhen, and the ChiNext markets reached 1.46 trillion yuan in the first half of the day, a decrease of 323 billion yuan from the previous day. Domestic funds were the main sellers with a net sell-off of 24.32 billion yuan. The median market rise and fall was 0.38%. In terms of the market situation, the short-term market style is quickly changing, showing no fixed main trend. The non-ferrous metal sector continued to rise, with companies like Shengda Resources and CITIC Metal Co., Ltd. hitting the limit up. The lithium mining concept, electrolyte, and lithium brine related stocks showed strength as well, with companies like Chengxin Lithium Group hitting the limit up. The computing power leasing concept continued to be strong, with companies like Mcc Meili Cloud Computing Industry Investment and SZZT Electronics hitting consecutive limits up. The fiber optic concept also had a rebound, with companies like Hangzhou Cable hitting the limit up. On the downside, the semiconductor industry as a whole declined, with companies like Hua Hong Grace Semiconductor and Semiconductor Manufacturing International Corporation falling. Companies in the industrial chain of Changxin and storage chips continued to decline, with Piotech Inc. falling by more than 5%. The AI application concept continued to decline, and the pharmaceutical concept also saw a decline, with Andon Health hitting the limit down. The computing power hardware concept also declined, with companies like Suzhou Dongshan Precision Manufacturing falling by more than 5%. In summary, multiple factors may have an impact on the market. 1. The chairman of the China Securities Regulatory Commission met with the CEO of a Canadian pension fund investment company in Beijing. They expressed their commitment to maintaining the stable and healthy operation of the capital market and increasing the accessibility of foreign capital to the market. 2. Several listed companies announced their performance forecasts for the first half of 2026. A notable mention is that A-share's new "stock king," Semight Instruments, is expected to increase its net profit by over 8 times. 3. Beijing State Capital Operation and Management Co., Ltd. expressed confidence in the development prospects of the Chinese capital market. So far, it has invested nearly 10 billion yuan in the stock market. 4. The stock markets of Japan and South Korea opened high on Wednesday. The KOSPI index in South Korea and the Nikkei index in Japan rose significantly at the opening, with major storage giants SK Hynix and Samsung Electronics soaring. 5. After the market closed on Wednesday in the Eastern time zone, Alphabet, Google's parent company, released its second quarter financial report. Google raised its full-year spending forecast, expecting capital expenditures to be between 195 billion and 205 billion U.S. dollars, driven by strong demand for artificial intelligence. Looking ahead, Founder believes that the current market rally is not just driven by emotions but is a process of fund reevaluation under financial constraints. The rebound so far has been more of a corrective bounce from oversold levels and has not completely reversed the divergence in high-level chips. Funds are continuing to avoid assets without performance realization and are moving towards assets that have fundamental support and valuation matching. The market may be approaching a bottom after the policy bottom, and a short-term rebound may be imminent. Popular sectors: 1. The non-ferrous metal sector continued to rise, with companies like Shengda Resources and CITIC Metal Co., Ltd. hitting the limit up. 2. The lithium mining concept continued to show strength, with stocks related to lithium resources, electrolytes, and lithium brine rising, and companies like Chengxin Lithium Group and Sunvim Group hitting the limit up. 3. The computing power leasing concept remained strong, with companies like Mcc Meili Cloud Computing Industry Investment and SZZT Electronics hitting consecutive limits up. 4. The fiber optic concept had a rebound, with companies like Hangzhou Cable hitting the limit up. Institutional views: - Founder: The market may be approaching a bottom after the policy bottom, and a short-term rebound may be imminent. - Soochow: The market may gradually stabilize in the continuous buying of large funds, and a rebound repair may be imminent in the short term. - Caixin Securities: The probability of a short-term rebound in A-shares is still high, and a favorable window for buying may be approaching in the medium term.