A-Share Markets Rebound in Afternoon, Maintain Strong Narrow-Range Fluctuations; Three Major Indices Rise

China's three major A-share indices opened higher on June 23 (Thursday), experiencing narrow-range fluctuations in the morning session. The market saw a notable widening of losses in the morning, but both Shanghai and Shenzhen markets rebounded in the afternoon, maintaining a strong, narrow-range oscillation pattern.

The Shanghai Composite Index closed up 0.25% at 3,876.78 points; the Shenzhen Component Index rose 0.44% to 14,123.31 points; and the ChiNext Index gained 0.25% to close at 3,575.52 points.

Total trading volume across the Shanghai and Shenzhen markets reached RMB 2.1953 trillion, down RMB 458 billion from the previous trading day.

Hong Kong's Hang Seng Index closed up 1.28% at 25,210.81 points, while the Hang Seng Tech Index rose 0.65% to 4,698.48 points.

CaiXin Securities believes the short-term rebound structure remains intact. On one hand, market volume contracted amid increased profit-taking pressure, indicating limited bearish momentum at current levels.

On the other hand, sector rotation has been healthy, with cyclical, consumer, and technology sectors taking turns to lead, supporting index performance. The hard-tech segment has not seen significant negative feedback, increasing the likelihood of continued short-term volatile rebounds in A-shares.

Looking ahead, with mid-year earnings disclosures concluding by late August and the U.S. midterm elections approaching in November, analysts expect a favorable window for renewed bullish positioning in A-shares from late August through end-October. Investors may consider increasing risk appetite and portfolio exposure during this period.

Zhongyuan Securities' research report noted that on July 22, A-shares faced resistance after an initial rally, with the Shanghai Index stalling near 3,884 points. Sector leaders included nonferrous metals, coal, and power stocks, while robotics and gaming sectors underperformed. The ChiNext Index declined in choppy trading.

The current policy-driven market stabilization mechanism is now operating in a normalized manner, providing strong support to the indices. The marginal impact of overseas volatility on A-shares is expected to gradually weaken. The Shanghai Index is likely to continue its range-bound consolidation, and investors are advised to monitor nonferrous metals and power sectors.