The Shanghai Composite Index approaches 3,500 points, hitting a new stage high! Computing power concepts and the PV sector both experience a surge [Stock Market Review]

The market fluctuated and rose throughout the day, with the ChiNext Index leading the gains and the Shanghai Composite Index approaching 3,500 points. The total trading volume on the Shanghai and Shenzhen stock exchanges reached 1.45 trillion yuan, an increase of 245.3 billion yuan compared to the previous trading day. On the futures market, market hot topics were relatively scattered, with more stocks rising than falling. Over 4,200 stocks across the market advanced. From a sector perspective, computing hardware stocks surged collectively, with more than 10 stocks, including Foxconn Industrial Internet, hitting the daily limit. PV concept stocks rebounded again, with more than 10 stocks, including Tongwei Co., Ltd., hitting the daily limit. Financial stocks surged at one point, with Dawisdom hitting the daily limit. By the close, the Shanghai Composite Index rose 0.7%, the Shenzhen Component Index rose 1.46%, and the ChiNext Index rose 2.39%.

Sector Analysis

In the sector analysis, the PV sector surged across the board, with stocks such as Sungrow Power Supply Co., Ltd., Tongwei Co., Ltd., Junda Photovoltaic Technology Co., Ltd., Shuangliang Eco-Energy Systems Co., Ltd., and Yamaton Holdings Limited hitting the daily limit. On the news front, recently, the Ministry of Industry and Information Technology (MIIT) held the 15th Manufacturing Enterprise Symposium, emphasizing the need to comprehensively address low-price and disorderly competition in the PV industry in accordance with laws and regulations, guide enterprises to improve product quality, and promote the orderly exit of backward production capacity.

Institutional research reports point out that at the current juncture, the pessimistic expectations for the PV sector have been fully reflected. Given the abundant market liquidity and policy expectations, the PV sector is expected to undergo a phased recovery. The following directions may be focused on subsequently: 1) The polysilicon segment, which has capacity integration and production cut expectations, is expected to benefit first; 2) The efficiency of BC batteries continues to improve, and with the differentiated competitive advantage of high-efficiency products, they are expected to form a premium over mainstream products, enhancing the profitability of related enterprises; 3) Most glass enterprises plan to cut production starting in July to improve the supply side, with the production cut scale expected to reach 30%, which is expected to alleviate inventory and price pressures.

Recently, there have been continuous news reports about "anti-cut-throat competition" in industries such as PV, steel, and building materials, reflecting the high-level's full attention to the supply-side surplus issues in some industries. The market still holds expectations for the implementation of subsequent specific measures. Coupled with the fact that the above-mentioned directions have undergone sufficient consolidation, with prominent advantages in valuation and position, it is expected that the hype surrounding the "anti-cut-throat competition" concept will continue in the aftermarket, and low-absorption opportunities can still be sought amid the fluctuations and rotations of related industries.

The computing hardware sector strengthened again, with stocks such as Foxconn Industrial Internet, Yihao New Materials, Yidong Electronics, Kingwang Electronics, Jin'an International Holdings, and Hongchang Electronics hitting the daily limit. Heavyweights such as Tencent Holdings, Shenghong Technology, Innolight, and Shanghai Electric also ranked among the top gainers.

On the news front, Foxconn Industrial Internet announced after the market close on July 7 that it expects to achieve a net profit attributable to owners of the parent company of 6.727 billion yuan to 6.927 billion yuan in the second quarter of 2025, representing a year-on-year increase of 47.72% to 52.11%. Among them, the operating revenue of AI servers increased by more than 60% YoY; the operating revenue of cloud service provider servers increased by more than 1.5 times YoY. Clearly, the better-than-expected Q2 earnings forecast of Industrial Fulian provided positive feedback for the entire computing hardware sector, accelerating capital inflows. Beyond the core areas of CPO and PCB, funds extended to subdivisions like high-speed copper cable connections, data centers, servers, and optical chips. Against this backdrop, the sector's core heavyweights remain crucial sentiment anchors. As long as their upward trend remains intact, opportunities for catch-up gains within the computing industry chain are still worth noting.

Stock-wise

, today's profit-making effects were concentrated in computing hardware and PV sectors, with popular heavyweights attracting renewed capital inflows. Among computing hardware stocks, Industrial Fulian surged by the daily limit with a turnover exceeding 7 billion, while Zhongji Xuchuang, Shenghong Technology, and Xinyisheng not only led gains but also ranked among the top 10 in market turnover. In the PV sector, Tongwei shares hit the daily limit early, Sungrow rose over 9%, and LONGi Green Energy, Deye shares, and Ginlong Technologies also gained more than 6%. This reflects the current market preference for trending plays on high-capacity targets.

On the other hand, short-term sentiment recovered today, with the advancement rate of consecutive limit-up stocks significantly improving. All five stocks with three consecutive limit-ups yesterday delivered premiums, four of which successfully advanced. The number of consecutive limit-up stocks also increased to 17. Intraday, Ymatou staged a "ground-to-sky" rally, recording four limit-ups in five days, while Liugang shares rebounded with a limit-up, achieving five limit-ups in six days, further boosting sentiment. With heavyweights setting the stage, short-term thematic speculation is expected to regain momentum, and hot topics resonating with indices and sentiment will be key focuses.

Market outlook

, today's market strengthened amid fluctuations, with all three major indices rising. The Shanghai Composite Index approached the 3,500-point mark again, while the ChiNext Index surged over 2% on heavy volume, shaking off the gloom of the previous two days' correction. It reclaimed the 5-day moving average and hit a new closing high for the phase. From a price-volume perspective, the market maintains a healthy structure of "rising prices with increasing volume, falling prices with shrinking volume," suggesting further upside potential in the short term. However, with current turnover below 1.5 trillion, sustaining a continuous high-angle rally remains challenging, and the market is more likely to adopt a gradual upward trajectory.

Turning to the futures market, current hotspots revolve around PV, steel ("anti-cut-throat competition" theme), computing hardware (tech growth), stablecoins (big finance), and solid-state batteries (lithium battery). Thus, identifying low-entry opportunities during rotations in these sectors is key to navigating the current market. Additionally, as mid-year performance forecasts are gradually disclosed, the realization of fundamentals and the investment in thriving sectors may attract more capital attention. Against this backdrop, industries or individual stocks with performance exceeding expectations are also worth tracking continuously.

Market News Highlights

1. Seven Departments Issue Document to Accelerate the Construction of an Inclusive Childcare Service System

The National Development and Reform Commission (NDRC) and six other departments jointly issued the "Opinions on Accelerating the Construction of an Inclusive Childcare Service System," clarifying the development of a "1+N" childcare service system. This system takes a comprehensive childcare service center as the hub and a network of childcare institutions, community-embedded childcare, kindergarten-based childcare, employer-provided childcare, and family childcare points as the "N." The "1" refers to the comprehensive childcare service center, which plays a demonstrative and leading role, promoting the development of regional childcare services. The "N" refers to various forms of childcare service institutions, including childcare institutions, community-embedded childcare, kindergarten-based childcare, employer-provided childcare, and family childcare points, to meet the diverse needs of the public. Efforts will be made to strengthen the construction of comprehensive childcare service centers, prioritizing full coverage at the prefecture-level city level. Community childcare services will be developed, with unified planning of community-embedded childcare service networks at the prefecture-level city level. Efforts will be made to promote the provision of childcare services by qualified kindergartens, ensuring the provision of necessary facilities, teachers, and other conditions. Employers will be encouraged to provide inclusive childcare services for their employees based on actual conditions. Support will be given to the development of private childcare service institutions. Medical and health institutions will be encouraged to support childcare services, providing services such as contracted orders, infant health management, and traditional Chinese medicine health services.

2. CPCA: Domestic Retail Sales of Passenger NEVs Reached 1.11 Million Units in June, Up 29.7% YoY

According to CPCA data, domestic retail sales of passenger NEVs reached 1.111 million units in June, up 29.7% YoY. In the first six months, cumulative domestic retail sales of passenger NEVs reached 5.468 million units, up 33.3% YoY.