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On August 20, the market opened high and fell throughout the day, with the three major indexes all falling by about 1%, and the Shenzhen Component Index and the ChiNext Index hitting new lows. As of the close, the Shanghai Composite Index fell 0.93%, the Shenzhen Component Index fell 1.24%, and the ChiNext Index fell 1.34%.

In terms of sectors, a few sectors such as titanium dioxide, e-sports, and e-commerce rose, while rail transit, coal, Huawei HiSilicon, and agriculture sectors had the largest declines.

In general, more stocks fell than rose, with nearly 4,600 stocks falling in the market. The turnover of the Shanghai and Shenzhen stock markets today was 557.8 billion, down 12.8 billion from the previous trading day.

Two weeks later, A-shares fell again, with nearly 4,600 stocks falling and the overall decline still not low; the index also weakened significantly, basically reversing the gains of the previous three trading days.

Under normal circumstances, this kind of market situation would most likely become a hot topic - but not today.

Because today’s hot search list was dominated by a “monkey”.

That’s right, it’s the “Black Myth: Wukong” that is being played by over one million players at the same time. Since the popularity of “Monkey King” has indeed broken the circle, it has in a sense “saved” the gaming sector of the A-share market today.

"Black Goku" explodes on the stage
The game sector opened and cashed in, but the flow returned for the second time

In last Sunday’s preview article, we mentioned that there will be a wave of speculation in the concept stocks related to “Black Myth: Wukong” in the next two days.However, if the market volume is not ideal, the "good news realization" drama may happen at any time.。

It just so happened that in the early trading today, the gaming sector had a significant rise and then fall. After the official release of "Black Myth: Wukong" at 10:00 am, the sector fell by more than 2%.

In fact, this trendIt’s not all because the funds in the market are too impatientAfter all, at the same time, the entire A-share market was shrinking and falling, so it was understandable that the first-hand funds took advantage of the profits to cash in.

Moreover, thereafterAs the popularity of the game gradually exceeded people's imagination, a lot of funds chose to flow back after 11 o'clock.

According to reports, within one hour of its official release, Black Myth: Wukong surpassed CS2 to become the most popular game on Steam, with more than 1 million concurrent players. As of 11:40, the number of concurrent players on Steam reached 1.2 million, and later exceeded 1.3 million.

Among the related concept stocks, Huayi Brothers and Zhejiang Media continued to rise;

More companies also used investor interaction platforms or media interviews to clarify their relationship with "Black Wukong".

Some stockholders who love playing games also took advantage of the situation to make up jokes↓

Jokes aside, the result shows that although the Flush Gaming sector (881275) still closed down, many sub-sectors such as e-sports, film and television theaters, online games, and cultural media eventually bucked the trend and turned positive.

As for the next direction, whether it is "differences turning into consensus" or "continued fulfillment", whether it is "The Return of the Great Sage" or "monkey show", it is obviously necessary to further track the reputation and popularity of the game.

What other sectors are rising?

Putting aside the gaming sector, there are probably only two relatively strong sectors in the market today.

1) Titanium dioxide concept

On the news front, the industry's leading stocks have achieved gratifying performance. According to the semi-annual report of China National Nuclear Titanium Dioxide, the company achieved operating income of 3.151 billion yuan in the first half of the year, a year-on-year increase of 42.29%; net profit attributable to the parent company was 304 million yuan, a year-on-year increase of 42.09%. The company said that the revenue growth was mainly due to the increase in both sales volume and price of titanium dioxide during the reporting period.

The semi-annual report of Lubei Chemical also showed that the company achieved operating income of 2.815 billion yuan in the first half of the year, a year-on-year increase of 31.28%; and achieved net profit attributable to shareholders of 146 million yuan, a year-on-year increase of 1063.27%.

Market insiders said that titanium dioxide prices continued to rise in the first quarter of this year. On the one hand, domestic enterprises stopped production for maintenance, resulting in slightly tight supply; on the other hand, the market's expectation of future periodic demand growth also increased the enthusiasm of downstream factories to prepare stocks. In addition, the strong demand in the overseas market in the first half of the year significantly boosted titanium dioxide exports.

2) Large state-owned banks

The sector has ignored the overall market and posted eight consecutive positive days.

As of the closing, Industrial and Commercial Bank of China, which had been rising for 10 consecutive days, rose 1.91%, and its share price hit a new historical high. Its market value exceeded that of China Mobile, making it the new market value leader of A-shares.

In addition, the total market value of China Construction Bank also exceeded 2 trillion yuan, ranking third in A-shares. Currently, of the only three 2 trillion yuan "giants" in A-shares, two are bank stocks.

Wanlian Securities believes that the high dividend yield and extremely low valuation of bank stocks have become the preferred choice of funds, coupled with the rising market defense demand, which has boosted the market performance of the entire banking sector. Looking forward, in the high dividend strategy, the supporting factors on the denominator may have been reflected more, and the stability of the numerator has become the key logic of high dividend stock selection. In addition, from the perspective of dividends, the increase in dividend rate is conducive to the improvement of bank stock 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: provided by Youke Interactive

Reporter Zhao Yun, Editor Xiao Ruidong

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