A-Share Market Afternoon: Indices Maintain High Levels with Volatility

China's three major A-share indices opened lower on October 12 (Wednesday), but reversed course early in the morning session, rising steadily in a one-directional move. In the afternoon, they maintained a high-level consolidation pattern.

The Shanghai Composite Index closed up 0.32% on the day, ending at 3,946.68 points. The Shenzhen Component Index rose 1.09% to close at 14,414.43 points, while the ChiNext Index gained 1.49% to finish at 3,602.08 points.

Total trading volume on the Shanghai and Shenzhen markets reached RMB 2.1524 trillion, down RMB 168.5 billion from the previous trading day.

Huaxi Securities believes the autumn market rally has officially begun, with multiple investment themes emerging. Since August, overseas liquidity concerns have significantly eased. Positive signals from U.S.-Iran talks and weaker-than-expected U.S. non-farm payroll data have jointly dampened market expectations for a September rate hike, boosting global risk appetite.

After a deep correction in July, Chinese A-share tech stocks have seen sufficient downside adjustment, though further time may be needed to consolidate the bottom. Recently, margin financing balances have stopped declining and started to rebound, once again concentrating in tech stocks—reflecting a marginal improvement in market sentiment.

Looking ahead, the autumn market is gradually entering a strategic positioning phase, shifting from a single tech-stock rally to multiple concurrent investment themes. During this period, 'non-tech sector rebalancing' and 'volatile tech-stock rallies' are expected to alternate repeatedly.

CITIC Securities believes the performance divergence between tech and non-tech sectors will gradually narrow. For tech stocks, attention should focus on wafer manufacturing platforms and semiconductor equipment. For non-tech sectors, industries such as non-ferrous metals, innovative pharmaceuticals, and non-bank financials have seen faster clearance of margin positions and lower trading congestion, making them worthy of attention.