the new materials, steel, and medical equipment sectors led the gains

Today, A-shares changed their declining trend, and the three major indexes rose across the board. The Shanghai Composite Index opened low and moved high. It was on a unilateral upside throughout the day. It finally closed up 0.66%, Shenzhen Component Index rose 1.86%, and ChiNext rose 3.57. %.

A shares: Why did A shares soar across the board today?
There were a total of 2,312 gainers in the two cities and 1,848 losers, with bulls taking the lead. There are 98 stocks with daily limit, close to the “100-stock daily limit”, the market’s profit-making effect is still very obvious. There are only 7 stocks with limit-down prices, which are single-digit levels, showing that the selling pressure of individual stocks is not heavy.

In terms of sectors, the new materials, steel, and medical equipment sectors led the gains, and the semiconductor, lithium battery, and beverage manufacturing sectors also performed strongly. Today, the sector is in a pattern of multiple blossoms. A total of 20 industry sectors in the two cities have increased by more than 1%. The coal, tourist attractions, and plantation sectors led the decline. Only 16 sectors in the two cities fell, and only the coal sector fell by more than 1%, and the other sectors had smaller declines.

A shares: Why did A shares soar across the board today?
Why will A-shares see an all-round rise today?

First, in my analysis yesterday, I pointed out that the market dived first on Tuesday, but then recovered and stabilized. Although the index is not strong, the actual market is not bad, and the long and short forces tend to balance, indicating that the market risk appetite is on the rise. Yes, this means that the biggest test of the week has passed, and the bulls will launch a counterattack at the half-year line.

Second, today, the net inflow of Shanghai Stock Connect funds is 1.8873 billion yuan, the net inflow of Shenzhen Stock Connect funds is 5.296.9 billion yuan, and the total net inflows of Shanghai and Shenzhen Stock Connect funds are 7.184.2 billion yuan. Foreign investors have bought A shares substantially. Although the index did not perform well yesterday, the net inflow of funds from the Shanghai and Shenzhen Stock Connect yesterday was still 1.928 billion yuan. Today, the inflow of foreign capital into A shares has accelerated, and the daily turnover of the two markets is still above the trillion yuan level. After short-term adjustments, ample Liquidity and continued inflows of foreign capital drive the market higher.

Third, last night, the State Council Office of the State Council of the People’s Republic of China issued the “Opinions on Strictly Cracking Down on Illegal Securities Activities in accordance with the law”, which comprehensively requires severely cracking down on illegal securities activities, improving relevant stock market systems, and intensifying criminal punishments. This constitutes a long-term impact on the stock market. The system is good. By improving the legal system and improving the efficiency of law enforcement, we will promote the stable and healthy development of the stock market and create a fair market environment, which will help activate market vitality and enhance investors’ long-term investment confidence in the stock market.

Fourth, from the perspective of the disk, there are many hot spots in the market today. Lithium new energy, semiconductors, small metals, automobiles and other sectors have all seen surges. The strength of new energy and semiconductors has significantly increased market sentiment. Recently, I have been emphasizing that in the overall differentiation of the market, technology growth stocks represented by new energy and semiconductors are still the main opportunities in the second half of the year. The semiconductor index was adjusted after reaching a new high yesterday, but today it is turned off. The lithium battery index rose sharply and hit a record high.

A shares: Why did A shares soar across the board today?
Therefore, today’s strong rebound in the broader market is a short-term sell-off release and after the optimistic expectations of investors have risen, the bulls have launched a counterattack on important supports. From the perspective of the Shanghai Composite Index, the top is still facing the 10-day line and the 20-day line. Pressure, due to the overall differentiation of individual stocks, the market is unlikely to rise continuously. It is expected that it will start to fluctuate after the rise on Thursday. From the perspective of market hotspots, the current opportunities are still concentrated in technology growth stocks. Although individual stocks will generally be affected when the market crashes, technology stocks will quickly strengthen after the adjustment and outperform the market.