China A-Shares See Rising Volume and Price, STAR50 Reaches All-Time High

The China Science and Technology Innovation 50 Index rose by over 5%, approaching its historical peak. The ChiNext Index increased by 3%, breaking through the 3900 mark, setting a new high since June 16, 2015. The Shanghai Composite Index broke through 4200 points.

Driven by a surge in the stocks of concept stocks such as memory chips and GPUs, Chinese A-shares' computing power hard stock has erupted again. Semiconductor chip stocks like Shenzhen Keye, Changchuan Technology, and Jiangsu Changda made new highs with multiple stock limits. Computing power hardware stocks have been active repeatedly, with Tongding Interconnection, Photoelectric Shares, and Taijiao Technology reaching stock limits.

The commercial aerospace and space photovoltaic concepts were lifted, with stocks such as Junda Shares, Golden Mantis, Datang Telecom reaching stock limits.

Chinese A-shares both in volume and price have improved, approximately 3000 stocks in Shanghai, Shenzhen, and Beijing turned positive, and the turnover in the first half of the day reached 2.32 trillion. The Shanghai Composite Index increased by 0.94% at the lunch break, the Shenzen Component Index by 2.13%, and the ChiNext Index by 3.03%.

The surge in A-shares is logically supported. First, from a performance perspective, it is being realized. According to statistical data from East Money, in the first quarter, 5503 listed companies in the A-shares with total net profit approximately 1.59 trillion yuan, a year-on-year increase of 6.7%. Among them, the Science and Technology Innovation board's net profit increased by more than 200% year-on-year, recording high growth for two consecutive quarters; the ChiNext's net profit increased by more than 22% year-on-year.

The capital expenditure of North American cloud manufacturers on AI has been significantly revised upwards, coupled with the acceleration of the domestic "AI +" action plan and the construction of "six major networks" infrastructure, computing power infrastructure is gradually moving from concept to order implementation.

The news of Nvidia's cooperation with Corning further ignited the optical communication sector on May 7th, with CPO, optical fibers, PCB, and other computing power supporting directions showing strength across the board.

Funding wise, Wind data shows that in April, A-shares financing balance increased by more than 100 billion yuan, and on May 6th, the main funds in Shanghai and Shenzhen markets inflow was nearly 20 billion yuan. Huaxi Securities analyst Li Lifeng believes that in May, the slow bull trend of A-shares is expected to be confirmed once again.