A-Share Market Sees Zero Limit-Down Stocks Again; Newly Listed Shengu Group Surges Nearly 300% Intraday

Latest Market Data:

• Latest Price: 3,911.87
• Change: +36.27 points (+0.94%)
• Trading Volume: 486 million lots
• Turnover: RMB 994.2 billion
• Turnover Rate: 1.00%

Market Overview

On September 18, the market fluctuated but trended upward. The Shanghai Composite Index rose nearly 1%, while the ChiNext Index gained over 2%.

More than 4,200 stocks across the entire market advanced. Combined turnover on the Shanghai and Shenzhen exchanges reached RMB 2.08 trillion, an increase of RMB 254 billion compared to the previous trading day.

Key Observations

Zero Limit-Down Stocks

Following September 1 and 8, today's A-share market once again recorded "zero limit-down" stocks (excluding ST stocks), while the number of limit-up stocks approached 80, reflecting a significant rise in short-term sentiment.

Unlike the previous two instances of "zero limit-down," major indices also posted medium-sized bullish candles today, giving the rebound greater strength.

Technical Pattern

Taking the Wind All-A Index as an example, connecting the candlesticks for the last three trading days of this week reveals a typical pattern of "rebound → minor divergence → renewed rebound." Additionally, after several days of low trading volumes earlier in the week, the market saw moderate volume expansion, with Friday's turnover returning above RMB 2 trillion.

Alignment with Global Markets

This trend aligns with global equity markets:

• Wednesday: Priced in the "rate hike landing" expectation ahead of time
• Thursday: Saw some profit-taking
• Friday: Continued higher, tentatively establishing a rebound trend

(Note: This corresponds to U.S. stock market movements from Tuesday through Thursday.)

Based on this inference, if U.S. equities continue to strengthen on Friday, following weekend developments, expectations for next week's A-share market are likely to rise further.

Analyst Outlook: Huaxi Securities

1. Negative catalysts fully realized: The current market may have already sufficiently digested the impact of this rate hike. Reduced macroeconomic uncertainty opens room for recovery in A-shares.

1. Federal Reserve policy shift: The Fed's rate-hiking impulse has ended. With the September rate hike implemented, the Fed will enter a data-observation window period. Monetary policy is marginally easing, improving external factors that previously suppressed market risk appetite, thereby providing key support for valuation repair and sentiment recovery during the golden autumn season.

1. Geopolitical and inflation factors: Geopolitical conflicts may ease somewhat, and declining oil prices from elevated levels could help alleviate inflationary pressures.

1. Technology sector momentum: Sustained high prosperity in the technology sector continues to materialize, with industrial trends supporting main thematic rallies. (Recent developments involving NVIDIA, Goldman Sachs, and cybersecurity were noted.)

"The Federal Reserve raised interest rates by 25 basis points at its September meeting as expected, adopting a hawkish stance and mentioning strong economic growth pushing up inflation for the first time..."

Sectors and Stocks to Watch

(1) Newly Listed Stocks

Shengu Group, which listed yesterday (September 17), triggered secondary temporary halts due to gains reaching 30% and 60% on both consecutive trading days, generating exceptionally strong wealth effects.

• First day of listing: Closed up 373.8%
• Today: Opened down nearly 28% before rapidly surging, triggering its first temporary halt in the morning session. Continued climbing into the afternoon, hitting a second temporary halt. After resuming trading, it surged uncontrollably, rising as much as 297.07% intraday and closing up 177.74%.
• Intraday range: Based on the intraday low (RMB 14.68) and high (RMB 82.59), investors who bought near the opening dip theoretically achieved maximum intraday unrealized gains of 462.6% (from low to high).

Influenced by this, short-term capital flowed toward newly listed stocks, sparking a surge in sentiment. C Xin Nuowei, which listed one day before Shengu Group, also saw notable activity.

Analyst Note: Such "get-rich-quick" opportunities are often out of reach for most investors (and carry significant risk), but the underlying signals merit attention. Some analysts believe that temporary halts in new or recently listed stocks can serve as important precursors to shifts in liquidity and sentiment. For instance, N Qian'an (Qian'an Technology HKC Corporation), which listed on the Beijing Stock Exchange on July 29, exhibited similar patterns.

Given current market levels and trading volumes, the probability of an upward breakout appears higher going forward.

(2) Semiconductors

The semiconductor sector is highlighted separately because "chips" showed unusual activity right from the open today, suggesting leadership in driving market strength. In contrast, "optics" (communications) lagged.

News Highlights:

• Morgan Stanley projects that the advanced packaging market size will reach hundreds of billions of yuan.
• On September 17, NVIDIA CEO Jensen Huang stated at an AI event in Scotland that NVIDIA expects chip sales in 2027 to be approximately double current annual levels.
• CICC previously noted related developments.

Source: National Business Daily