On August 29th, A-share major indices rose initially before pulling back. By midday close, the Shanghai Composite Index gained 0.16%, the Shenzhen Component Index rose 0.93%, and the ChiNext Index surged 2.34%. Market breadth showed 2,008 stocks rising and 3,264 declining.
On the sector front, solid-state battery concepts surged in morning trading, with Contemporary Amperex Technology Co., Limited jumping over 11%, while Leading Intelligence Equipment, Jiebang Technology, and Hangke Technology hit their 20cm daily limits. Robot concept stocks rallied mid-session, with Rongtai Shares and Jiecang Drive both hitting daily limits. The consumer retail sector remained active, with Kuaijishan hitting its daily limit, and Guoguang Chain and Wanchen Group reaching new highs during trading. Flying car and gold concepts also experienced volatile gains.
On the decline side, semiconductor stocks collectively retreated, with Cambricon falling over 5% and SMIC dropping over 4%. Additionally, Huawei industrial chain, lithography equipment, and consumer electronics sectors led the decliners.
Looking ahead, Galaxy Securities believes A-share medium-term trends remain favorable, but with minimal market volatility since late June, fluctuations may increase as the market enters an acceleration phase. The relatively better strategy focuses on sectors and quality names at relatively low levels, awaiting rotation and catch-up gains.
**Hot Sectors**
**1. Solid-State Battery Sector Continues Rising** The solid-state battery concept continued its upward momentum, with Contemporary Amperex Technology Co., Limited rising nearly 12%, Leading Intelligence Equipment and Hangke Technology hitting 20cm daily limits, Guoxuan High-Tech hitting its limit, and China Coal Energy, Changyang Technology, Mengguli, Btr New Material, and Putailai all posting significant gains.
Market commentary: Leading Intelligence Equipment's 2025 interim report showed net profit attributable to shareholders of approximately 740 million yuan in the first half, up 61.19% year-over-year, with second quarter net profit growing 456.29% year-over-year.
**2. Robot Concept Stocks Rally** Robot concept stocks surged mid-session, with Rongtai Shares and Jiecang Drive both hitting daily limits. Haoen Automotive, Dongshan Precision, Tuopu Group, Hengshuai Shares, Zhenyu Technology, Zhejiang Rongtai, and Longxi Shares all gained over 5%.
Market commentary: The State Council recently issued "Opinions on Deepening the Implementation of 'AI+' Actions," proposing vigorous development of intelligent connected vehicles, AI smartphones and computers, intelligent robots, smart homes, intelligent wearables, and other new-generation intelligent terminals.
**3. Baijiu Sector Surges** Food and beverage stocks opened higher, with baijiu and dairy stocks leading gains. Kuaijishan hit its daily limit, Jinhui Liquor rose over 6%, with Jiugui Liquor, Laobaigan, Yili Group, Shede Spirits, Wuliangye, and Kweichow Moutai following suit.
Market commentary: During the second quarter's volatile market, multiple single asset management plans from Central Huijin increased holdings in various sector ETFs against the trend, including adding 121 million shares of Penghua Liquor ETF. Pacific Securities research suggests that as liquor companies gradually release balance sheet pressure and channel inventory continues to decline, industry bottom characteristics are evident, awaiting an inflection point.
**Institutional Views**
**Huatai Securities: Sufficient Accumulation Needed for Sustainable Future Market Performance** Huatai Securities believes that in the short term, judging market tops has limited significance and success rate. Portfolio allocation should maintain positions, follow trends in line selection, and moderately rotate between high and low positions internally. In terms of timing, even if adjustments occur subsequently, the magnitude won't be too deep, as consensus on the market entering an upward trend is gradually strengthening. Historically, improvements in domestic fundamentals, domestic liquidity, and overseas liquidity are the three key pillars for market upward trends. Currently, all three factors are converging positive changes, requiring time for quantitative to qualitative changes. Sufficient accumulation is needed for sustainable future market performance. For allocation, AI chain, innovative drugs, military industry, and major financials remain strategic allocation focuses, with moderate internal high-to-low rotation.
**Shenwan Hongyuan: Market's Continued Bull Market Atmosphere is Reasonable** Shenwan Hongyuan Securities believes the market's continued bull market atmosphere is reasonable, with strength likely maintained until early September, after which market corrections will be limited. After early September, structural selection perspectives may shift from short-term momentum to medium-term evolution. Innovative drugs and overseas computing chains represent prosperity opportunities from China's deep integration into overseas industrial chains. Potential mainlines supporting a comprehensive bull market focus on domestic technology chain breakthroughs and advanced manufacturing anti-involution, optimizing industry order and building industry alliances. Future Chinese manufacturing competitive advantages should match profitability, with anti-involution reaching its endgame as a necessary path, focusing on sectors where China holds high global market shares: solar, chemicals, and some electrical machinery key components.
**Galaxy Securities: Market Volatility May Increase, Focus on Low-Position Rotation and Catch-up Directions** Galaxy Securities believes that comprehensive analysis shows A-share medium-term trends remain favorable, but with minimal market volatility since late June, fluctuations may increase as the market enters an acceleration phase. Operationally, those who missed out should avoid blind chasing of highs, as momentum trading carries significant risks. The relatively better strategy focuses on sectors and quality names at relatively low levels, awaiting rotation and catch-up gains. Currently, technology growth is the market mainstream, while Hong Kong stocks, military industry, non-banking, gold, non-ferrous metals, and discretionary consumption may be important directions for rotational catch-up gains.
**China Merchants Securities: Interim Report Disclosure Nearing End, Next Phase Focus on Innovative Drugs** China Merchants Securities believes the current market is in the second stage of a bull market, characterized by capital-driven, sector-dominant features. They recommend focusing on innovative drugs, CXO, domestic computing power, robotics, and domestic AI Agent sectors in the next phase. Interim report disclosure is nearing completion. From currently disclosed sample growth rate medians, non-banking, agriculture/forestry/animal husbandry/fishery, non-ferrous metals, steel, electronics, and machinery industries showed relatively high cumulative growth rate medians in the first half. With ongoing interim report releases, analysts have upgraded 2025 consensus earnings forecasts for cross-border e-commerce, communication network equipment and devices, LED, lithium battery specialized equipment, medical research outsourcing, fluorochemicals, gaming, film and animation production, and wind power components over the past month, suggesting potential strong performance in related areas.