A Shares Rise at Noon: Shanghai Composite Up 0.55%, Pharma Stocks Surge on Policy Boost

Date: September 21

Source: Zhitong Finance & Economics

A-share三大 indices opened higher collectively on September 21 and maintained a positive range throughout the morning session. The ChiNext Index outperformed, while the STAR 50 Index initially rose then pulled back. The market displayed a pattern of "broad index gains, pharmaceutical sector leadership, and widespread stock advances."

Key Market Data at Midday Close

• Shanghai Composite Index: Up 0.55% at 3,933.37 points
• Shenzhen Component Index: Up 0.57% at 13,718.23 points
• ChiNext Index: Up 0.93% at 3,403.97 points
• Stock Performance: Over 4,300 stocks rose, while more than 1,000 declined
• Trading Volume: Total half-day turnover across Shanghai, Shenzhen, and Beijing markets reached 1.339 trillion yuan, an increase of 10.3 billion yuan from the previous trading day

Capital Flows

According to data from Cailianshe, early-session main capital inflows were concentrated in the pharmaceutical, telecommunications, and chemical pharmaceutical sectors. Outflows were seen in the semiconductor, electronics, and new energy equipment sectors. The pharmaceutical sector alone recorded net inflows exceeding 5.4 billion yuan.

Market Overview

Gainers:

• Medical services, CRO concept stocks, innovative drugs, and biological products led the gains
• Chemical pharmaceuticals, film and television, tourism, and hotels also moved higher
• PCB concept stocks saw localized strength

Losers:

• Home appliances and precious metals sectors led the declines
• Insurance stocks experienced a modest pullback
• Banking stocks traded with a corrective tone

Overall, stocks were broadly higher, with capital clearly concentrating in the pharmaceutical and biotechnology sectors. Previously defensive sectors such as precious metals and insurance saw capital outflows.

Hot Sectors

1. Medical Services and CRO Concepts Lead Gains

Medical services and CRO concept stocks opened higher and continued to rally. Notable movers include:

• Novogene: Hit the 20% daily limit
• Nanjing Biological: Extended its winning streak to three consecutive limit-ups
• Haochen Medical, Aoyang Health, Baihua Pharmaceutical: All hit the daily limit
• Jinan Protein: Hit the 20% daily limit
• Chengdu Lead: Rose over 14%
• Wanbang Pharmaceutical: Rose over 13%

Catalyst: On September 18, the State Council executive meeting deployed measures to expand medical rehabilitation and nursing care services, emphasizing a grassroots-focused approach to strengthen the service system, extend resources to communities and households, and dynamically adjust the catalog of rehabilitation and long-term care service items.

2. Innovative Drug Stocks Surge with Multiple Limit-Ups

Innovative drugs and chemical pharmaceuticals performed strongly. Stocks hitting the daily limit include:

• Harbin Pharmaceutical, Xinhua Pharmaceutical, Ruikang Pharmaceutical, Shenqi Pharmaceutical, Jinghua Pharmaceutical
• Yiyi Pharmaceutical: Hit the 30% daily limit
• Yahong Pharmaceutical, Nuocheng Jianhua: Led the gains

Catalyst: On September 18, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission, the National Medical Products Administration, and nine other departments, released the "15th Five-Year Plan for the Development of the Pharmaceutical Industry." The plan targets:

• Revenue of over 3.5 trillion yuan for pharmaceutical industrial enterprises above a designated size by 2030
• First-in-class innovative drugs accounting for over 25% of the global share
• 25 key tasks across eight areas, including innovation-driven development and precision diagnostics
• Clear support for the development of CRO and CDMO specialized production service models

3. Film and Television Sector Rises

The film and television sector gained momentum during the session. Notable performers include:

• Huazhi Digital Media: Hit the 20% daily limit
• Huanrui Century, Bainacheng, China Film, Huace Film & TV: Followed the uptrend

Catalyst: According to Maoyan Professional Edition's release calendar on September 20, nine films have been scheduled for the National Day holiday period, including Rebirth 2, officially set for release on October 3. Additionally, on September 18, the Ministry of Culture and Tourism released the "15th Five-Year Plan for Cultural Industry Development," proposing the application of artificial intelligence in cultural creation, production, distribution, and consumption.

4. PCB Concept Stocks See Localized Strength; Fiberglass Sector Also Active

PCB concept stocks showed localized strength:

• Guanghe Technology: Hit the daily limit
• Xunjiexing: Rose over 12%
• Jingwang Electronics: Followed the uptrend

The fiberglass sector also moved higher:

• Sinoma Science & Technology: Briefly hit the daily limit, closing the morning session up over 7%
• China Jushi, Shandong Fiberglass, International Composites: Followed the gains

Catalyst: China Jushi raised prices for electronic fabric (thick and thin types) by 15% and 20% respectively in September. Kingboard and overseas substrate manufacturers also adjusted their quotations accordingly, continuing the price transmission chain from upstream electronic fabric to midstream copper-clad laminates.