China A-Shares Close Lower After Afternoon Volatility; Major Indices Decline

China's three major A-share indices collectively opened lower on August 11 (Tuesday). After a brief morning rebound, the market turned downward with volatility in the afternoon.

The Shanghai Composite Index closed down 0.82% at 3,934.09 points. The Shenzhen Component Index fell 0.4% to 14,259.44 points, while the ChiNext Index rose 0.34% to 3,549.16 points.

Total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 2.3209 trillion, down RMB 202.2 billion from the previous trading day.

CITIC Securities believes that the market is currently in a phase of rebound from oversold conditions, with sectors that previously declined more experiencing greater elasticity. The market has already entered a recovery process. As market liquidity and price discovery mechanisms normalize, investment strategies in August should gradually shift from trading oversold rebounds toward more balanced allocations.

Investors should use the rebound to reduce exposure to marginal assets and rebalance portfolios toward technology leaders with core competitiveness and non-tech sectors with solid fundamentals, low valuations, and favorable positioning.

CITIC Securities maintains its mid-term view of 'three convergences': excess returns in upstream hardware and price-increasing products within the AI supply chain are converging with those of downstream platforms and cloud services; valuation discounts of non-AI industrial sectors relative to overseas peers are seeing temporary recovery; and the extreme divergence between tech and non-tech stocks is gradually converging.

According to Huatai Securities' research report, the oversold rebound still has room to play out, with particular focus on the ChiNext Index. In terms of timing, the密集 period of mid-year earnings reports in mid-to-late August may serve as a key window to test the sustainability of the rebound.