A-share opening express | After opening 0.20% lower, the Shanghai Index turned red, paper and biological products led the way

Opening data

The Zhitong Finance App learned that on August 26, the Shanghai Index opened 0.20% lower to 3881.74 points, the Shenzhen Index opened 0.11% higher to 13761.36 points, the GEM index rose 0.35% to 3409.28 points, and the Science and Innovation 50 opened 0.07% higher to 1605.74 points. As of 9:31, a total of 2,761 companies in the two markets and the Beijing Stock Exchange had risen, 2,427 were down, and 362 were flat. The increase was highest: papermaking, biological products, other power supply equipment II, passenger cars, industrial metals, automobile services, etc.; the decline was the highest: petroleum and petrochemicals, coal, media, textiles and apparel, utilities, transportation, etc.

The situation on the market

On August 26, A-shares opened, Shanghai was weak, and the index was divided. The Shanghai Index opened 0.20% lower to 3881.74 points, the Shenzhen Index opened 0.11% higher, the GEM index opened 0.35% higher, and the Science and Innovation 50 opened 0.07% higher. As of 9:31, 2,761 companies had risen and 2,427 companies had fallen in the entire market, accounting for about 50% of the increase, which was relatively balanced between long and short. Dragged down by an overnight sharp drop in international oil prices, petroleum, petrochemical, and coal led the decline in Shenwan's Tier 1 industries; sectors such as paper, biological products, passenger cars, and industrial metals bucked the trend and strengthened.

Overnight quick facts

US stocks closed up and international oil prices fell sharply: on August 25, the three major US stock indices collectively closed up. The Dow rose 0.30%, the S&P 500 index rose 0.32%, the NASDAQ rose 0.66%, and Nvidia rose 2.19% and stopped falling for seven consecutive years. WTI crude oil futures fell 3.12% to 82.36 US dollars/barrel, and Brent crude oil fell 3.89% to 88.58 US dollars/barrel due to US pressure on Iraq, mainly sanctions, and rising expectations for the resumption of navigation in the Strait of Hormuz.

The central bank's MLF downsizing and overnight reverse repurchase notice was released: the central bank launched a 500 billion yuan 1-year medium-term loan facilitation (MLF) operation on August 25, which matured 600 billion yuan in the same month, achieving a net return of 100 billion yuan; on August 24, the central bank announced that it will launch an overnight reverse repurchase operation from August 27 to September 1, with a daily operation volume of no more than 600 billion yuan.

The interim report intensively revealed that central enterprises are attacking 6G: On the evening of August 25, the interim report revealed that the net profit of Shanghai Electric Power Co., Ltd. increased 73.72% year on year in the first half of the year, the net profit of Jiangxi Copper increased 106.77% year on year, and the net profit of China Merchants Securities increased 104.87% year on year. The State Assets Administration Commission held a 6G future industry promotion conference for central enterprises on August 20 to deploy central enterprises to attack the 6G industry, promote technological breakthroughs, and accelerate towards a closed commercial loop.

Trend analysis

Today, the four major indices diverged. The Shanghai Index opened 0.20% lower, and the Shenzhen Index, the GEM Index, and the Science and Innovation 50 opened slightly higher, showing a pattern where Shanghai is weak and strong. Overnight, the three major US stock indices collectively closed higher, and Nvidia stopped falling seven times in a row, and the optical communications and storage sectors rebounded, or boosted technological growth sentiment; however, international oil prices plummeted by more than 3%, suppressing resource-heavy sectors such as petroleum, petrochemicals, and coal, dragging down the Shanghai index.

The domestic central bank launched an MLF operation of 500 billion yuan and announced an overnight reverse repurchase arrangement at the end of the month; optical communications and PCB reported high performance, and fundamental support for the computing power industry chain is still there. The institutional consensus is biased in favor of power equipment going overseas and the boom direction where demand for computing power is high, and there is no systematic negative feedback on funding. The short-term resource sector may be under pressure, technological growth and pharmaceutical consumption may be relatively active, and the index may continue to fluctuate and diverge.