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On August 2, the market fluctuated and adjusted throughout the day, with the ChiNext Index leading the decline. As of the close, the Shanghai Composite Index fell 0.92%, the Shenzhen Component Index fell 1.38%, and the ChiNext Index fell 1.66%.

In terms of sectors, CRO, precious metals, innovative drugs, pork and other sectors saw the largest increases, while CPO, semiconductors, copper cable high-speed connections, PCB and other sectors saw the largest decreases.

Overall, more stocks fell than rose, with more than 4,100 stocks falling in the market. The turnover of the Shanghai and Shenzhen stock markets today was 722.3 billion yuan, down 60 billion yuan from the previous trading day.

Affected by the overnight plunge in U.S. stocks, Asian markets generally "collapsed" this morning.

Not only did the Japanese and Korean stock markets plummet, but when the market opened at 9:30, the number of A-shares that rose and fell was like this↓

I guess many investors must have felt a little nervous.Will the A-share market’s gains on Wednesday this week be completely reversed?

Fortunately, although the A-share market failed to avoid the impact, its performance was still tenacious, and the number of stocks that rose and fell during the session was once balanced.

As of the closing, the pharmaceutical sector as a whole strengthened and topped the list of gains.

What is more noteworthy is that the recent lively short-term market is still continuing. During the trading session, the "10 consecutive boards" that had disappeared for nearly 5 months reappeared, and another stock once "reached the ceiling".

Japanese stocks plunged for two consecutive days
Cross-border ETFs have pulled back

The panic in the Asian market was largely due to the poor performance of the Japanese stock market yesterday, which fell even more sharply today.

As of the close, the Nikkei 225 index fell nearly 6%, hitting a new low in nearly six months. Since peaking on July 10, it has fallen nearly 6,000 points in less than a month, with a cumulative decline of more than 14%.

According to media reports, analysts believe that the trend of Asia-Pacific stock markets today may still be related to the yen carry trade. Historically, the trend of the yen and Japanese interest rates in 2000 and 2007 triggered huge shocks in the global capital market. This may be the reversal of carry trades, which has caused pressure on the equity market and commodities, but is bullish for gold prices. In a tightening environment, Japanese bond interest rates are generally rising, and the impact of US bond interest rates is complex.

On the other hand, the overnight decline in U.S. stocks further weighed on market sentiment.

On August 1, local time, the Dow Jones Industrial Average closed down 1.21%, the S&P 500 fell 1.37%, and the Nasdaq fell even more by 2.3%. The decline in a number of economic data caused market concerns that the economy may be in recession.

Data released by the U.S. Department of Labor on Thursday showed that initial jobless claims increased by 14,000 to 249,000 in the week ending July 27, compared with market expectations of 236,000. The number of initial jobless claims in the United States rose to the highest level in nearly a year, further proving that the labor market is slowing. The number of people continuing to receive unemployment benefits also rose to 1.88 million in the week ending July 20, the highest level since November 2021. In addition, data released on Thursday showed that the Institute for Supply Management (ISM) manufacturing index fell 1.7 to 46.8 in July.

Affected by external market conditions, A-share cross-border ETFs led the decline.

A-shares' 10-day winning streak is a long-awaited performance

Although the A-share index performed generally today, at the individual stock level, the short-term market remained active for most of the trading session.

In the morning, Tengda Technology once again hit the daily limit, breaking its 10th consecutive limit. It remained firmly closed at the close of trading, with a turnover of 830 million yuan and a turnover rate of over 53%.

This is the first time in nearly five months that the A-share market has seen a stock rise 10 times in a row. Previously, in April, Laisen Tongling and Watson Technology both stopped at 9 consecutive boards and failed to reach 10 consecutive boards; in March, Ai Ai Precision and in February, Kelai Electromechanical both achieved 13 consecutive boards, which is the highest record of consecutive boards in the A-share market in 2024.

Currently, Tenda Technology ranks fourth in the A-share market with the longest consecutive gains this year. The top three are: Kelai Electromechanical (13 consecutive gains), Ai Ai Precision (13 consecutive gains) and Shenzhen Zhonghua A (11 consecutive gains).

The recent rise in Tengda Technology's stock price is mainly due to the popularity of the commercial aerospace concept. However, it should be noted that Tengda Technology's announcement on the evening of August 1 emphasized that as of now, the company has no direct supply to commercial aerospace customers; although the company's stock price has risen significantly in the short term, the company's fundamentals have not changed significantly, and there may be irrational speculation.

At the same time, Qiming Information, which superimposed the concept of vehicle-road-cloud + satellite navigation,The market reached the "ground-ceiling board" in the early trading session, but unfortunately it did not close at the end of the trading session.

Qiming Information also previously issued an announcement stating that there are currently no matters that should be disclosed but have not been disclosed, or any planning, negotiation, intention, agreement, etc. related to the matter; the board of directors has not been informed that the company has any information that should be disclosed but has not been disclosed and has a significant impact on the trading price of the company's shares and its derivatives; the company's previously disclosed information does not require correction or supplementation.

The pharmaceutical sector rose strongly

Putting aside the "leading stocks" that have been on the board for consecutive days, most of the sectors on today's list of gainers are actually medical-related concepts.

On the news front, the General Office of the State Council issued the "Guiding Opinions on Improving the Long-term Mechanism for Basic Medical Insurance Participation" (hereinafter referred to as the "Guiding Opinions"), which requires clarifying the responsibilities of all parties and implementing participation in accordance with the law; improving policies and measures to encourage continuous participation; improving service quality and strengthening perceived participation.

This morning, the website of the National Medical Products Administration released the "Approval on Launching a Pilot Program to Optimize the Review and Approval of Clinical Trials of Innovative Drugs in Beijing and Shanghai."

A few days ago, the General Office of the Shanghai Municipal People's Government issued several opinions on supporting the innovative development of the entire chain of the bio-pharmaceutical industry, and carrying out high-level clinical trial projects in accordance with international standards.

In addition, many leading CRO companies recently released their performance forecasts for the first half of 2024, sending out signals of industry recovery. Among them, WuXi AppTec announced that as of the end of June 2024, the company's backlog of orders reached a record high of 43.1 billion yuan; the amount of new orders signed by Corning Life Sciences in the first half of the year increased by more than 15% year-on-year; and the amount of new orders signed by Agilent Technologies increased by more than 20% year-on-year.

Minsheng Securities believes that the recovery of innovation policies will drive the continued growth of the clinical CRO industry. From the perspective of demand, global biopharmaceutical investment and financing has bottomed out and rebounded, the trend of innovation demand recovery has been confirmed, China's local high-quality innovative drugs have been recognized globally, and China's clinical trial activities remain strong, and the demand for CROs will steadily increase. From the perspective of supply, the clinical CRO market continues to expand and the penetration rate continues to grow. In the future, the concentration of China's clinical CRO market will continue to increase, and the scale effect of the head will gradually become prominent.

AVIC Securities stated that in the long run, as the volume-based procurement of drugs and consumables continues to advance, companies with high safety margins, strong innovation capabilities, rich product pipelines and a good competitive landscape are expected to continue to benefit in the long term. It is recommended to continue to focus on innovative drugs and innovative drug industry chains, high-end medical devices, offline chain pharmacies, and medical consumption with scarcity and consumer attributes, while exploring second-tier blue-chip stocks with relatively low valuations.

Investment is risky, independent judgment is important

This article is for reference only and does not constitute a basis for buying or selling. You should bear the risks of entering the market at your own risk.

Cover image source: Screenshot of market software

Reporter Zhao Yun, Editor Peng Shuiping

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