A-Share Market Reverses Afternoon, Two Markets Rise with Three Major Indices Up

China's A-share market opened mixed on the 29th (Wednesday), with weak and volatile trading in the morning session. The market saw several attempts to turn positive, only to fall again, but reversed in the afternoon, with both markets moving upward.

The Shanghai Composite Index closed up 0.4% on the 29th at 3,828.47 points; the Shenzhen Component Index rose 1.1% to 13,658.44 points; the ChiNext Index gained 1.55% to 3,378.7 points.

Total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 2.2966 trillion, an increase of RMB 270.8 billion compared to the previous trading day.

China Galaxy Securities stated that external sentiment shocks do not equate to a reversal in the fundamentals of Chinese tech companies. With market-stabilizing policies continuing to take effect and no significant changes in domestic corporate fundamentals, A-shares still possess medium- to long-term allocation value. Within the tech sector, there may be a shift from broad-based gains to structural divergence, with greater emphasis on cash flow, profitability, and capital expenditure efficiency.

CaiXin Securities believes overseas tech assets have not yet clearly stabilized, and increased volatility may be the short-term norm, significantly affecting the sci-tech direction of A-shares in two main ways:

First, it lowers overall risk appetite and delays the pace of new capital inflows.

Second, it suppresses the rebound potential of hard-tech stocks in A-shares, making it difficult for many trapped investors in earlier sci-tech positions to exit in the short term, thus failing to release this portion of liquidity. Both factors could lead to a downward shift in the current trading volume center.

Therefore, in the short term, the market may continue to exhibit a volatile bottoming pattern. Strategically, investors should focus on position control, balanced allocation, and capturing rotation rhythms, waiting for the market to gradually expand volume or show a clear leading sector before increasing exposure.