Market Overview - The A-share market continued to rise, with all three major indices reaching new highs for the year. The Shanghai Composite Index increased by 0.62%, the Shenzhen Component Index rose by 0.84%, and the ChiNext Index gained 0.61% [1][2] - The total trading volume for the day was 1.93 trillion yuan, an increase of 201.5 billion yuan compared to the previous trading day, with over 2,500 stocks rising and more than 100 stocks hitting the daily limit for the second consecutive day [1] Sector Performance Hydropower and Infrastructure - The hydropower concept stocks were notably active, with companies like Wuxin Tunnel Equipment and Jikang Technology both hitting the daily limit of 30% increase. Other companies such as Poly United, China Power Construction, and Jiangnan Chemical also saw significant gains [4][5] - The Yarlung Tsangpo River downstream hydropower project has officially commenced, with a total investment of approximately 1.2 trillion yuan, which is six times the annual investment amount in Tibet. This project is expected to significantly boost infrastructure development in the western region and promote clean energy construction [4] Coal Sector - Coal stocks performed well, with Shanxi Coking Coal, Lu'an Environmental Energy, and Haohua Energy all hitting the daily limit. Other companies like Pingmei Shenma and China Coal Energy saw increases of over 9% [6][7] - The current thermal coal market is characterized by strong seasonal demand and a tightening supply structure, driven by high temperatures across the country, leading to a steady increase in prices [6] Steel Sector - The steel sector saw widespread gains, with companies like Fangda Special Steel and Xining Special Steel hitting the daily limit. Other companies such as Liugang and Bayi Steel also experienced significant increases [8][9] Alcohol and Beverage Sector - The liquor stocks showed a mixed performance, with Shanxi Fenjiu and Yingjia Gongjiu rising over 5%, while other brands like Luzhou Laojiao and Guizhou Moutai also saw gains [10] Precious Metals - The precious metals sector strengthened, with West Mining rising nearly 7% and other companies like Hunan Silver and Zhongjin Gold increasing over 3% [11] State-Owned Enterprises - State-owned enterprises saw a rally in the afternoon, with companies like China Energy Engineering and China Railway Construction hitting the daily limit [12][13] Photovoltaic Equipment - The photovoltaic equipment sector experienced a broad increase, with Yijing Photovoltaic hitting the daily limit and other companies like Daqo New Energy and Tongwei Co. rising over 5% [14] AI and Technology - The AI sector faced a downturn, with companies like Yuke Technology dropping over 7% and others like Zhongke Jin Cai and Guangyun Technology declining over 3% [15] Gaming Sector - The gaming sector remained sluggish, with companies like Gigabit and Sheng Tian Network dropping over 3% [16] Banking Sector - The banking sector underperformed, with Minsheng Bank and Chongqing Rural Commercial Bank both declining over 2% [17] Market Outlook - According to China International Capital Corporation, the recent strength in the A-share market is not driven by significant macroeconomic catalysts, but rather by changes in the funding landscape. Key changes include a restructuring of monetary order, an increase in the proportion of individual investors, and a relative attractiveness of the stock market amid rising household savings [18]

Core Viewpoint - The recent rally in A-shares, particularly among state-owned enterprises, signals a potential stabilization in the market, with significant buyback and shareholding increases from major companies [1][5][6]. Group 1: Market Performance - A-shares experienced a collective rise, with the Shanghai Composite Index increasing by 1.58%, the Shenzhen Component by 0.64%, and the ChiNext Index by 1.83% [6]. - The Wind index for state-owned enterprises rose by 3.2%, driven by notable gains in companies like China Great Wall and China Software, both hitting the daily limit [1][3]. Group 2: Corporate Actions - China Petroleum announced plans to increase its shareholding by no less than 2.8 billion yuan and up to 5.6 billion yuan within the next 12 months [5]. - China Petrochemical initiated a new buyback plan, aiming to purchase shares worth between 2 billion yuan and 3 billion yuan, funded by its own resources and special loans [5]. - The State-owned Assets Supervision and Administration Commission expressed support for central enterprises to actively engage in buybacks and shareholding increases to bolster market confidence [6]. Group 3: Investor Sentiment - Analysts suggest that the actions of central enterprises to stabilize the market often occur during periods of liquidity risk, indicating a potential bottoming out of the market [9]. - The National Social Security Fund has also increased its domestic stock holdings, reinforcing a long-term investment strategy [6]. Group 4: Future Outlook - Market experts believe that while short-term volatility may persist, the overall trend suggests a gradual stabilization, with A-shares expected to outperform other markets due to the unique structure of domestic investors [9]. - The ongoing resilience of the domestic economy, as indicated by the manufacturing PMI remaining above the growth line, supports a positive long-term outlook for A-shares [10].