A-shares collectively opened lower on October 18. In early trading, stimulated by the good news, the Shanghai and Shenzhen stock indexes rose and fell. In the afternoon, chip stocks broke out, and the two cities continued to fluctuate upward, with the Shanghai Composite Index once rising more than 4.5%, the Shenzhen Component Index once rising more than 7.2%, and the Innovation Index once rising more than 11.7%. However, the end of the market dived, and the gains narrowed.

At the close, the Shanghai Composite Index rose 2.91% to 3,261.56 points, the STAR 50 Index rose 11.33% to 978.66 points, the Shenzhen Component Index rose 4.71% to 10,357.68 points, and the ChiNext Index rose 7.95% to 2,195.1 points.

On the news side, at the annual meeting of the 2024 Financial Street Forum, Pan Gongsheng, governor of the central bank, said that he would take the opportunity to further reduce the RRR by 0.25-0.5 percentage points. In addition, two major monetary policy tools to support the capital market, namely stock repurchase and refinancing, and securities, funds, and insurance company swap facilities (SFISF) instruments, have been officially implemented.

From the perspective of the disk, technology stocks have blown out across the board, Cambrian and SMIC have both 20cm sealing boards, and many semiconductor ETFs have daily limits; Brokers, machinery, and new energy followed up the rally.

Statistics show that a total of 5,091 stocks rose in the two cities and the Beijing Stock Exchange, 198 stocks fell, and 62 stocks were flat.

The total turnover of the Shanghai and Shenzhen stock exchanges was 2,097.6 billion yuan, an increase of 606.4 billion yuan from 1,491.2 billion yuan on the previous trading day. Among them, the Shanghai market turnover was 827.9 billion yuan, an increase of 270.6 billion yuan from the previous trading day's 557.3 billion yuan, and the Shenzhen market turnover was 1,269.7 billion yuan.

According to Great Wisdom VIP, a total of 335 stocks in the two cities and the Beijing Stock Exchange rose by more than 9%, and no stock fell by more than 9%.

Semiconductor and brokerage stocks soared

In terms of plates, all sectors of Shenwan are red.

The

semiconductor sector soared, with more than 40 stocks such as Compass (300803), Fudan Microelectronics (688385), Hunan Yuneng (301358), VeriSilicon (688521), Otway (688516), and Smartway (688213) rising by more than 10%.

Brokerage stocks made a comeback, Oriental Wealth (300059), Guohai Securities (000750), Haitong Securities (600837), Tianfeng Securities (601162) and other daily limits or rose by more than 10%, CITIC Securities (600030), Zheshang Securities (601878), Pacific (601099) and other companies rose by more than 8%.

Chip stocks continued to be strong, with nearly 60 stocks such as Jewalt (688141), Cambrian (688256), Fudan Microelectronics (688385), SMIC (688981), National Technology (300077), and Xinyuan Microelectronics (688037) rising by more than 10%.

Bank stocks rose less, with Chongqing Rural Commercial Bank (601077), Agricultural Bank of China (601288), and Shanghai Rural Commercial Bank (601825) falling against the market.

Recently, the A-share market has shown a pattern of long-short confrontation and high-level shocks

Dongguan Securities said that the recent A-share market has shown a pattern of long-short confrontation and high-level shocks. Although the market sentiment has cooled down in the short term, this provides a cooling-off period for the long-term stability and healthy development of the overall market, which helps investors analyze the market in a more rational and prudent manner, so as to make more informed investment decisions, and is more conducive to the long-term growth of the subsequent market. At present, the incremental funds in the market have decreased compared with the previous period, resulting in a more obvious phenomenon of plate rotation, and it is recommended that investors can pay attention to the low-absorption opportunities in the rotation of hot plates. Judging from the current market volume, the market activity is still high, there are still potential benefits in the future policy, and the market as a whole still has a lot of room for development. In terms of sector selection, it is recommended to focus on the allocation of financial, TMT, consumption and other sectors.

Ping An Securities recently pointed out that the capital market blockbuster "combination boxing" was introduced, this round of policy strength, wide range, fast landing, the formation of a strong catalyst for market sentiment, market confidence rebounded rapidly, since late September A-share trading activity has increased, on October 8, A-share stock trading turnover is as high as 3.48 trillion yuan. The securities industry has beta attributes in terms of valuation and performance, and benefits from it in an all-round way. At the current point in time, we continue to be optimistic about the valuation of the industry, a number of policies are still being introduced, and the central bank's structural monetary policy tools, long-term funds into the market and other measures are still to be further implemented, which is expected to continue to bring liquidity to the capital market and continue to recommend the securities industry. It is recommended to pay attention to Oriental Wealth, Straight Flush, CITIC Securities, China Galaxy, etc.

Galaxy Securities pointed out that after nearly three months of correction in the consumer electronics sector, the current overall price-earnings ratio TTM is only 22 times, which is at a historical low, and a new round of replacement demand is expected to boost the profitability and valuation of the consumer electronics sector. The demand for replacement phones has driven the recovery of the consumer electronics industry. It is recommended to pay attention to Lixun Precision, Goertek, Lingyi Intelligent Manufacturing, BOE A, Jingyan Technology, etc.