Today, the major indices fluctuated downwards but rebounded in the afternoon. The Shanghai Composite Index rose slightly by 0.08% to 3051 points. The Shenzhen Component Index fell by 0.9%, and the ChiNext Price Index fell by 2.16%. Over 4100 stocks rose, and the total turnover for the day was 716.8 billion yuan, down 178.1 billion yuan from yesterday.

On the market, micro-cap stocks rebounded, and the index rose by nearly 5%. Multiple stocks, such as Superpipe and other companies, rose to the daily limit. The real estate services sector fluctuated upwards, and Zhongtian Service rose to the daily limit. The "Action Plan for Improving the Construction of a Beautiful Bay" was issued, and the environmental protection sector rose. Raynen Technology approached the daily limit.

In addition, the PLC concept fell, and Raynen Technology fell by more than 7%; the EDR concept fell, and Hopechart IoT fell by more than 7%; the Ning combination, Mao index and hundred-yuan stocks fell sharply, and Nest Power was down more than 8% in intraday trading. News reports said that American lawmakers called for it to be included on the entity list.

Specifically:

Brokerage stocks fell sharply, with Tianfeng Securities plummeting by the daily limit and Caida Securities down by more than 4%. China Fortune, Xin Da Securities, Golden Dragon, Hongta Securities all fell more than 2%.

Regarding the sharp drop of Tianfeng Securities, analysts believe that it may be mainly related to the market's concerns about Tianfeng Securities' liability issues. Recently, Tianfeng Securities issued a notice stating that it will increase financing guarantees for its overseas subsidiaries. However, some institutions have stated that they have confirmed with the company that the overall fundamentals have not changed, nor have significant business risks been generated. In addition, the market is also concerned that Tianfeng may be delisted due to poor performance.

AI PC, copper cable high-speed connection, and AI mobile phone sectors saw the largest decrease, with Shenyu Communications falling by more than 9%. Zhaolong Interconnect, Suntak Technology, Thunder Software Technology fell by more than 5%. Deren Electronics and Zhongfu Circuit fell by more than 4%. Mentech Optical & Magnetic, Huafeng Technology, Thunder.Shin Technology, and Avary Holding all fell by more than 3%, while Digital China Group fell by more than 2%.

CPO weakened, and Kingshine Electronic Technology fell by more than 9%, while Zhishang Technology, Sri New Material Technology fell by more than 8%. Weier High, Yuanjie Technology fell by more than 6%. Tfc Optical Communication, Zhongji Innolight fell by more than 4%.

Chip stocks fell, with West China Testing and Yi Hao New Material both falling by more than 16%, while Ya Chuang Electronics fell by more than 6%. Sharetronic Data Technology and Four Optoelectronics both fell by more than 4%, and Fudan Microelectronics and Shennan Circuits both fell by more than 2%.

Property stocks led the gains, with Zhongtian Service and New Dazheng both rising to the daily limit and Nacity Property Service Group and Shenzhen Worldunion Group both rising more than 6%. SDG Service rose by more than 3%.

The dye sector strengthened, with Twin-lead Chemical Fibre, Wanfeng Stock raising the daily limit, while Lanfeng Bio-chemical rose more than 7%. Anoky Group, Zhejiang Jihua, and Yabang Dyestuff all rose more than 6%. Joint Chemical, Zhejiang Longsheng all rose more than 3%.

The environmental protection sector rebounded slightly, with Qingdao Guolin Technology Group, Anhui Bossco Environmental Protection Technology and Xiong'an New Power Technology all rising more than 13%. Zhuojin Stock and Xingyuan Environment Protection both hit the daily limit, and Liyuan Environment Protection and Zhenghe Ecological both rose more than 7%.

Stocks which may be taken off the hat and ST sectors were active, with *ST Baan, ST Lingda and Shanghai Hoda New Material stocks rising to the daily limit. ST Huijin rose by more than 16%, ST Pioneer up by more than 12%, while Jinyuan stock, Huangtai Wine-Marketing Industry, and Etrol Technologies all rose more than 6%. Firstar Panel Technology and others rose more than 5%.

On the news side, the CSRC stated that 33 companies have triggered delisting standards since the beginning of this year, with 22 face value delisting, and the market's survival of the fittest mechanism is gradually forming. There are 47 delistings scheduled for the full year of 2023. The new delisting rules have set a certain transition period, and it is expected that the number of delisted companies will not increase significantly in the short term.

Looking ahead,Cinda Securities believes that there are some optimistic signals in the recovery momentum of the domestic economy. Based on the profit data of industrial enterprises, there are four main lines in high-prosperity industries: upstream cycle sectors, high-tech industries (TMT and military industry sub-fields), export chains (textile and clothing, light manufacturing, automobiles, basic chemicals such as chemical fibers, and rubber sub-sectors), and public utility-related industries.

Recommendations for the next 3 months: Cyclicals (good production capacity structure + central ROE lift + high dividend) > Finance and real estate (value style trend + high policy sensitivity) > New energy semiconductors (inventory cycle may be close to the bottom + pressure on capacity to be released) > AI (new industry logic + verification of performance) > Consumer (economic post-cyclic sector + limited room for valuation increase).