The three major A-share indices fluctuate differently; trading volume approaches 3.3 trillion yuan; fiber optic concept stocks continue to rise sharply.

Chinese A-shares’ three major indices showed mixed gains and losses today; by the close, the Shanghai Composite fell 0.25%, closing at 4,214.49 points; the Shenzhen Component declined 0.47%, closing at 15,824.92 points; the ChiNext Index rose 0.15%, closing at 3,934.88 points. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets reached 3.27 trillion yuan, surpassing 3 trillion yuan for five consecutive trading days, but down 295.7 billion yuan from yesterday.

Most industry sectors closed lower, with non-metallic materials, power grid equipment, and electric power sectors leading gains, while rare earths, aerospace equipment, energy metals, maritime equipment, internet e-commerce, and automotive services sectors saw the largest declines.

In individual stocks, nearly 1,400 stocks rose, with about a hundred hitting the daily limit. Optical fiber concept stocks continued to surge, with Weike Technology and Tongguang Cable hitting the 20-cent limit, along with Solar Cable, Quartz Shares, Tongding Interconnection, and others reaching the limit.

Today’s Highlights

Margin Financing and Securities Lending Balance Surpasses 2.8 Trillion Yuan, Some Brokerages Set 115% Instant Liquidation Lines

As of May 8, the margin financing and securities lending balance of A-shares exceeded 2.8 trillion yuan, with leveraged funds accelerating their focus on the tech mainline. Meanwhile, brokerages like Orient Securities upgraded risk control systems, adding indicators such as “instant liquidation lines.” Industry insiders believe that although overall leverage risk is manageable, the financing crowding in some individual stocks and sectors warrants caution. Investors should avoid chasing high-priced stocks driven purely by emotional speculation.

SK Hynix and Intel Join Forces to Advance! Advanced Packaging Capacity Bottleneck May Ease, Funding Investors Pre-Position Multiple Stocks (List)

According to media reports citing foreign sources, as TSMC’s CoWoS (chip-on-wafer-on-substrate) packaging capacity continues to be strained, South Korea’s memory chip giant SK Hynix is collaborating with Intel on research and development of 2.5D packaging technology. In terms of funding, 11 advanced packaging concept stocks received net purchases exceeding 50 million yuan within the month.

US Chip Sector Rages On with Hidden Risks, Retail Investors Pour In, Raising Concerns

According to JPMorgan’s position data, retail investors’ buying intensity in tech stocks reached its highest level in a year last week. Benefiting from the AI boom, storage chip companies were especially popular, with hardware stocks experiencing the second-highest historical capital inflow. Over the past six weeks, the Philadelphia Semiconductor Index has risen 60%, with nearly all valuation metrics appearing overvalued. For ordinary retail investors who only entered the sector in May, this means a sudden market reversal could lead to significant losses.

Insider Disclosure: US May Consider Restoring Military Actions Against Iran

On the 11th, US sources revealed that due to stalled US-Iran negotiations, the US government is now “more seriously considering” resuming military actions against Iran than in recent weeks. US officials have differing opinions on Iran; some advocate for tough measures, including targeted strikes to weaken Iran and force concessions at the negotiation table, while others prefer to give diplomatic talks more time.

Continue Moderate Easing of Monetary Policy! The Central Bank: Strengthen Regulation of Behaviors That Reduce Policy Transmission

On May 11, the People’s Bank of China (PBOC) released the “Q1 2026 China Monetary Policy Implementation Report,” summarizing the monetary policy execution in the first quarter of 2026, analyzing the current economic and financial situation, and clarifying the policy direction for the next phase. Regarding the main ideas for future monetary policy, the report states that the PBOC will enhance policy foresight, flexibility, and targeting, adjusting the strength, pace, and timing of policy implementation based on domestic and international economic and financial conditions and financial market operations. It will strengthen coordination between monetary and fiscal policies, smooth the transmission mechanism of monetary policy, and promote stable economic growth and reasonable price levels. The PBOC will also regulate some unreasonable market behaviors that hinder policy transmission to maintain market competition order.

Institutional Views

CITIC Construction Investment: Focus on Structural Opportunities Amid Recovery Divergence, Target Four Major Sectors for Investment

CITIC Construction Investment released its mid-2026 investment strategy report, stating that the Chinese economy started the year steadily in Q1 2026, with PPI turning positive, marking an important macro turning point in the industrial cycle, and the domestic economic recovery officially beginning. Although Middle Eastern geopolitical conflicts have caused temporary stagflation disruptions globally, they do not alter the core trend of gentle domestic recovery. Looking ahead to the second half of 2026, the macroeconomic pattern will feature “recovery divergence, policy support, and structural optimization.” The possibility of RRR cuts remains, fiscal policy will focus on existing projects, and the policy focus will be on expanding domestic demand, technological innovation and independence, energy and resource security, and industrial restructuring. The implementation of the “14th Five-Year Plan” will set the tone for long-term development. The RMB’s moderate appreciation and corporate earnings recovery will resonate, creating a systemic valuation re-evaluation opportunity for Chinese assets. Investors should identify structural opportunities within the recovery divergence, focusing on detailed investments in consumption, technology, resource security, and thematic dividends.

Huatai Securities: Growth Style Market May Have Another Upward Wave

Last week, the Philadelphia Semiconductor Index, a leading indicator of global tech stocks, surged 11.14%, boosting global tech sentiment. In just three trading days, growth ETFs outperformed value ETFs by about 6%. Currently, the Philadelphia Semiconductor Index shows overbought signals; the electronics sector is highly crowded; and the style rotation model indicates a bullish outlook on growth style across three scoring dimensions—suggesting the growth market is temporarily overheated. However, this is unlikely to be the top. The technical indicators of the Philadelphia Semiconductor Index are comparable to those of COMEX silver at the end of 2025, and a new upward wave may still be ahead. During the January silver rally, the GVZ index led the top of silver prices; similarly, monitoring the VIX index can help identify risk points for the Philadelphia Semiconductor Index.

Huaxi Securities: “Red May” Continues the Main Uptrend, Focusing on “Technology + Resources” Dual Main Lines

On the overseas front, the capital markets have fully priced in geopolitical risks, and with expectations of easing US-China relations, external constraints on A-shares have weakened marginally. Post-holiday, funds have accelerated into the market, with margin balances hitting new highs for the year, and the average stock price of all A-shares surpassing the year’s high, reflecting a positive feedback loop of new capital entering the market, driving the A-share rally higher. Meanwhile, the RMB continues to appreciate, further enhancing the attractiveness of RMB assets, which helps reduce market risk premiums and lift valuation centers. In terms of style, the global AI technology industry’s resonance reinforces the logic of A-shares. The high growth of AI chain exports and the first-quarter earnings confirm that the sectors of technology and resources are further confirmed as high-growth directions.