The ChiNext Index opened higher and continued to rise, gaining nearly 2%. Computing hardware stocks surged across the board, and the concept of solid-state batteries rebounded in the afternoon [Stock Market Review].

The market fluctuated and rebounded throughout the day, with the ChiNext Index leading the gains. CATL rose nearly 5%. The total trading volume of the Shanghai and Shenzhen stock exchanges reached RMB 1.31 trillion, a decrease of RMB 67.2 billion compared to the previous trading day. On the futures market, market hot topics were relatively scattered, with more stocks rising than falling. Over 3,200 stocks across the market advanced. In terms of sectors, computing hardware stocks surged again, with PCB and other directions leading the gains. Multiple stocks, including China Electronics Zhongjing, hit the daily limit. Concept stocks related to innovative drugs fluctuated and strengthened, with SinoCellTech and others hitting the daily limit. Concept stocks related to solid-state batteries rebounded, with Dadongnan staging a "floor-to-ceiling" rally. On the downside, concept stocks related to the marine economy adjusted, with Kelaite falling over 10%. By the close of trading, the Shanghai Composite Index rose 0.18%, the Shenzhen Component Index rose 1.17%, and the ChiNext Index rose 1.9%.

In terms of sectors

, the PCB sector strengthened across the board. Stocks such as Yihao New Materials, Founder Tech, Zhongyi Technology, Bomin Electronics, China Electronics Zhongjing, and Avary Holding hit the daily limit. Shenghong Technology rose over 6% to hit a new all-time high, while stocks such as Shennan Circuits, Mankun Technology, and Zecheng Electronics led the gains.

Guosheng Securities stated that under the explosion of AI PCB demand, the current supply of the corresponding industry chain is in a tight state. In addition to the scarcity and tightness of high-layer and high-stage HDI capacity, the supply of high-end materials upstream in the industry chain is also scarce. It is necessary to pay attention to the performance explosion opportunities of the PCB industry chain under the AI mega-cycle.

The consumer electronics sector led the gains in terms of percentage increase. Stocks such as Industrial Union, Chaoyang Technology, and Xinya Electronics hit the daily limit, while stocks such as Lens Technology, Huaqin Technology, Sunway Communication, Lingyi iTech, and Luxshare Precision rose over 5%. According to reports from the Science and Technology Innovation Board Daily, Apple's foldable iPhone has entered the P1 (Prototype 1) prototype development stage in June, with subsequent P2 and P3 stages expected. It is anticipated that the prototype development process will be completed by the end of 2025, with a potential launch in the second half of 2026.

China Galaxy Securities stated that the consumer electronics industry in the first half of 2025 presents the core characteristics of "dual-wheel drive by policies and AI." China's "national subsidy" policy effectively activated the mid-end consumer market, driving structural recovery in categories such as mobile phones and tablets. AI technology deeply penetrated terminal devices, promoting the intelligent leap of PCs and mobile phones, and accelerating the commercialization of new form products such as AI glasses. In the second half of the year, the industry faces a critical turning point of "policy retreat and technological breakthrough," with the growth sustainability determined by the ability to explore emerging markets and achieve ecological synergy.

Reviewing the current market trend in the computing hardware direction, it was initially led by identifiable heavyweights such as Shenghong Technology and Eoptolink, which set the tone. After short-term market enthusiasm was reignited, the trend began to spread across the entire sector, with clear traces of institutional funds clustering. From a medium-term perspective, as long as the core stocks do not experience destructive declines, the sector may still have further upside room. However, after today's across-the-board surge in volume, sentiment may reach a climax, and with the overall market volume gradually shrinking, there might be some short-term differentiation and consolidation.

Innovative drug concept stocks strengthened, with Gensun Biopharma, Sinocelltech, Jiuzhitang, Wuming Medicine, and Changchun High & New Technology among others hitting the daily limit. News-wise, several innovative drug companies recently disclosed progress on their core products. This morning, Dizal Pharma announced that the new drug application for Sulvozertinib was officially approved by the US Food and Drug Administration (FDA) for the treatment of adult patients with advanced non-small cell lung cancer (NSCLC) harboring EGFR Exon20ins mutations who have been previously treated.

From an investment standpoint, in the just-concluded June, after accumulating significant gains, the innovative drug sector experienced a short-term adjustment. Zhongtai Securities believes this is conducive to the sustained development of industry logic. Fundamentally, innovative drugs remain the sub-sector within the pharmaceutical industry with the clearest trend and future growth potential. Looking ahead to July, the 2025 National Medical Insurance Catalog negotiation is imminent, and policy support is expected to bring positive catalysts. Subsequently, attention can be paid to sub-sectors gradually emerging from turning points, such as CRO&CDMO, upstream research, specialty raw materials, chain pharmacies, and branded OTC.

On the individual stock front,

today, apart from the strength in innovative drugs and computing hardware, solid-state battery concept stocks also bottomed out and rebounded in the afternoon. Dae Dongnam staged a "ground-to-sky" move, recording 6 out of 8 days of limit-up, while ZY Technology, Huasheng Lithium, and Tongguan Copper Foil also completed upward reversals. Additionally, leading stock CATL also saw a nearly 5% increase in volume. As one of the first hot topics to see a clear return of funds after the previous adjustment, the short-term status of solid-state batteries has been further consolidated. In the ongoing rotation of the market, solid-state batteries still possess momentum for further gains.

The recovery of solid-state batteries also played a positive role in repairing short-term sentiment, with Chengbang Shares sealing the daily limit at the close, raising the consecutive board height back to 6, and Hao Shanghao setting a new historical high with 5 out of 7 days of limit-up. If the sentiment continues to improve tomorrow, opportunities for low absorption and arbitrage could be sought in previously popular themes such as military and stablecoins.

Market Outlook

Today, the market rebounded, with all three major indices closing in the green, and the ChiNext Index rising nearly 2%, setting a new phase high. In terms of index performance, the market maintains an upward trend. However, from the current market situation, there is still some short-term uncertainty. First, amid the collective recovery of indices today, trading volume continued to shrink, suggesting that the market still lacks support from incremental funds outside the market. On the other hand, innovative drugs and computing hardware sectors led the gains today, and their overall positions are already high. Essentially, this still leans more towards active fund clustering, and its driving effect on the overall market remains to be further observed. Therefore, it is expected that the market will continue to be dominated by a volatile rotation structure in the future, and caution should be maintained in response. Seeking low-buy opportunities in popular sectors that have experienced corrections may offer a higher probability of success.

Market News Highlights

Longfor Has Transferred 1.76 Billion Yuan into the "22 Longfor 04" Repayment Special Account, with Cumulative Public Debt Repayments Nearing 9 Billion Yuan This Year

Reporters learned from independent sources that Longfor has transferred the repayment funds for the bond "22 Longfor 04" into the special account for debt repayment at the China Securities Depository and Clearing Corporation, with a total amount of 1.766 billion yuan, including 1.697 billion yuan in principal and 69.7 million yuan in interest. Public information shows that the "22 Longfor 04" bond has an issuance scale of 1.7 billion yuan, a coupon interest rate of 4.1%, and an exercise date of July 5, 2025. After the repayment of "22 Longfor 04" is completed, Longfor's cumulative public debt repayments this year will approach 9 billion yuan.