Group 1 - The cultivated diamond sector leads the market with an increase of 3.06% [1] - In this sector, Inno Laser saw a significant rise of 14.66% [1] - Sifangda and Huanghe Xuanfeng also experienced notable gains, rising by 13.95% and 10.03% respectively [1] Group 2 - Other companies in the cultivated diamond sector, such as Hengsheng Energy, Power Diamond, and *ST Yazhen, all increased by over 5% [1]

Market Overview - The three major indices all rose, with the Shanghai Composite Index up 1.2%, the Shenzhen Component Index nearly 2%, and the ChiNext Index surging by 2.92% [3] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets was 11,632 billion, which is a decrease of 77 billion compared to the previous day, indicating that funds are still "testing" the market rather than fully committing [3] Sector Performance - The shale gas sector saw significant gains, with companies like DeSheng Co. and PetroChina hitting their daily limits, while sectors such as cultivated diamonds and storage chips also performed well [3] - In contrast, the coal and gas sectors experienced a downturn, with companies like Antai Group nearing a limit down and others like Baotailong and Changchun Gas also adjusting downwards, highlighting a stark contrast in sector performance [3] Investment Strategy - Investors are advised to maintain a cautious approach, focusing on stability rather than urgency in their investment decisions [4] - For those holding stocks in strong sectors like engineering machinery and storage chips, it is recommended to hold and observe as long as key support levels are not broken, rather than chasing high prices [3] - Investors should also be wary of low trading volumes; if the afternoon session does not see an increase in volume, it is advised not to increase positions even if indices rise [3]

Group 1 - A-shares saw a total of 67 stocks hitting the daily limit up and 3 stocks hitting the limit down during the first half of the trading day on October 21 [1] - The shield machine concept was active, with Zhongxin Heavy Industry achieving a consecutive limit up, and companies like Shanhe Intelligent and China Chemical Geology also hitting the limit up [1] - The cultivated diamond concept strengthened, with Huanghe Xunfeng and Hengsheng Energy achieving consecutive limit ups, and *ST Yazhen hitting the limit up [1] Group 2 - Daya Energy achieved 7 limit ups in 8 days, Hefei Urban Construction achieved 6 limit ups in 8 days, and *ST Aowei achieved 4 limit ups in 6 days [1] - Other notable stocks include Huajian Group and Shangs Development with 3 limit ups in 5 days, and *ST Huawang with 3 limit ups in 4 days [1] - *ST Yuancheng experienced a continuous decline with 7 consecutive limit downs, while Ningbo Zhongbai and Qunxing Toys also hit the limit down [2]

Market Overview - On October 21, A-shares opened higher with the Shanghai Composite Index at 3870.75 points, up 0.18%, the Shenzhen Component Index up 0.52%, and the ChiNext Index up 0.81% [2][4] - By the time of reporting, the ChiNext Index had expanded its gains to 2%, and the Shenzhen Component Index had increased by 1.44% [3] Sector Performance - The gold sector led the market, with significant gains in gold jewelry stocks [8][9] - The superhard materials sector saw a strong increase, with the cultivated diamond concept rising over 5% [14] - The energy equipment sector also rose, with DeShi Co. hitting a 20% limit up shortly after opening [28][30] Notable Stocks - Gold stocks such as Zhaojin Mining, Sichuan Gold, and Chifeng Jilong Gold saw increases of over 3% [9][10] - In the superhard materials sector, stocks like Huanghe Xuanfeng and Sifangda recorded gains of over 10% and 11%, respectively [15][16] - In the storage chip sector, stocks like Dawi Co. and Taiji Industry rose over 10% [22] Company Highlights - CATL reported a revenue of 283.07 billion yuan for Q3 2025, a year-on-year increase of 9.28%, with a net profit of 49.03 billion yuan, up 36.20% [25][27] - DeShi Co. reached a market cap of 3.9 billion yuan with an 85.10% increase year-to-date [32]

Core Insights - The cultivated diamond sector is experiencing a strong performance, with notable stock price increases for companies such as Huanghe Xuanfeng and *ST Yazhen reaching the daily limit [1] - Other companies in the sector, including Sifangda and Inno Laser, are also showing significant gains in their stock prices [1] Company Performance - Huanghe Xuanfeng and *ST Yazhen have hit the daily trading limit, indicating robust investor interest and confidence in these stocks [1] - Sifangda and Inno Laser are among the top performers in terms of stock price increases, reflecting positive market sentiment towards the cultivated diamond industry [1]

Core Insights - The cultivated diamond index increased by 2.16% during intraday trading, indicating a positive trend in the sector [1] Company Performance - Huanghe Xuanfeng reached the daily limit increase, showcasing strong market performance [1] - Sifangda rose by 9.18%, reflecting significant investor interest [1] - Power Diamond experienced a slight increase of 0.33%, indicating stable performance [1] - Huifeng Diamond saw a minor rise of 0.15%, contributing to the overall positive sentiment in the sector [1]

Group 1 - The A-share market saw a significant rise in the cultivated diamond sector, with notable increases in stock prices for several companies [1] - Huifeng Diamond experienced an increase of over 18%, while Sifangda and Liliang Diamond rose by over 16% and 10% respectively [1] - Hengsheng Energy hit the daily limit up of 10%, and Huanghe Xuanfeng approached the limit up as well [1] Group 2 - Huifeng Diamond's market capitalization is approximately 3.266 billion, with a year-to-date decline of 7.56% [2] - Sifangda has a market capitalization of about 6.657 billion, with a year-to-date increase of 24.34% [2] - Liliang Diamond's market capitalization stands at 11.7 billion, with a year-to-date increase of 24.49% [2] - Hengsheng Energy's market capitalization is around 8.408 billion, with a remarkable year-to-date increase of 177.12% [2] - Huanghe Xuanfeng has a market capitalization of approximately 9.143 billion, with a year-to-date increase of 52.40% [2]

Core Insights - The A-share cultivated diamond sector is experiencing significant growth, driven by policy changes and technological advancements, transitioning from a decorative to a functional application in high-end manufacturing [1][2] - Cultivated diamonds are being recognized for their strategic value, particularly in the semiconductor industry, where they serve as ideal heat dissipation materials [2][4] - China's dominance in the cultivated diamond market is evident, controlling 95% of global production capacity, but the industry faces structural imbalances, particularly in processing and branding [7][8] Group 1: Market Dynamics - The cultivated diamond market is undergoing a value reconstruction, shifting from decorative uses to functional applications, particularly in electronics [1] - The global cultivated diamond market is facing pressure, with India's imports of rough diamonds dropping by 37.01% year-on-year, indicating overcapacity and price wars [4][6] - In contrast, the natural diamond market shows resilience, with a 14.07% year-on-year increase in rough diamond imports in August [5] Group 2: Policy Implications - The Chinese government has implemented export controls on synthetic diamond products, which may initially hinder exports but will ultimately drive the industry towards technological advancements and high-end production [4][8] - The policy changes will create different opportunities and challenges across the supply chain, benefiting upstream manufacturers and supporting midstream processing capabilities [9][10] - The domestic market for cultivated diamonds has significant growth potential, with current penetration at only 5%, suggesting substantial room for expansion [9][11] Group 3: Investment Opportunities - Investors are advised to focus on companies with leading advantages in semiconductor heat dissipation applications and large single crystal production, as these areas are encouraged by policy and have high technical barriers [10][11] - The trend towards domestic production of detection instruments and core equipment is expected to create growth opportunities for specialized companies in the cultivated diamond sector [11][12] - The recent export control policy marks a pivotal moment for the cultivated diamond industry, shifting growth drivers from price competition to technological breakthroughs and value enhancement across the entire supply chain [12]

Core Viewpoint - The recent surge in the A-share cultivated diamond sector is driven by policy changes and technological advancements, leading to a revaluation of its market potential from decorative to functional applications [2][4]. Group 1: Market Dynamics - The cultivated diamond sector is experiencing a significant influx of capital, with stocks like Huanghe Xuanfeng and Power Diamond seeing substantial price increases, indicating a collective vote of confidence in the industry's future [2]. - The cultivated diamond's transition from jewelry to high-tech applications, such as in semiconductor cooling solutions, highlights its evolving role in the manufacturing sector [4][5]. Group 2: Technological Advancements - Cultivated diamonds are recognized for their superior thermal conductivity compared to copper and silicon, making them ideal for addressing heat dissipation challenges in advanced electronics [4]. - Power Diamond has set a global record with a 156.47-carat cultivated diamond, showcasing advancements in single crystal cultivation technology that enhance the practical applications of diamonds in electronics [5]. Group 3: Strategic Policy Impacts - The Chinese government has implemented export controls on synthetic diamond products, recognizing their strategic importance in high-end manufacturing, particularly in the semiconductor industry [6][10]. - These export controls are expected to shift the industry focus from scale to technology, promoting higher-end production and innovation within the cultivated diamond sector [10][12]. Group 4: Industry Structure and Challenges - Despite China's dominance in cultivated diamond production, the industry faces structural imbalances, with significant reliance on India for processing and branding, leading to a distorted value distribution [8]. - The Indian cultivated diamond market is under pressure, with a 37.01% year-on-year decline in rough diamond imports, contrasting with the resilience of the natural diamond market, which saw a 14.07% increase in imports [7][8]. Group 5: Future Opportunities - The policy changes are expected to create new opportunities across the industry chain, particularly for upstream manufacturers and midstream processing firms, as well as for downstream brands in the domestic market [11][12]. - The cultivated diamond market in China has a low penetration rate of 5%, indicating significant growth potential as consumer awareness and demand increase [11].

Core Viewpoint - The A-share market experienced a pullback after an initial surge, with the ChiNext index rising over 3% at one point, driven by significant gains in the cultivated diamond sector [2] Industry Summary - The cultivated diamond concept saw substantial gains in the afternoon, with several stocks hitting their daily limit, including Huifeng Diamond and Sifangda, both reaching a 20% increase, while Huanghe Xuanfeng and Hengsheng Energy also hit the limit up [2] - The superhard materials sector is expected to undergo consolidation due to export restrictions, which may lead to price fluctuations in the future. The functional applications of synthetic diamonds are anticipated to continue driving investment opportunities in this sector [2]