On August 6th, the A-share market experienced a rally that later faded, with over 2,700 stocks ending the day higher. Sectors such as tungsten hexafluoride, coal, semiconductor materials, and advanced packaging were active, while the automotive and securities sectors saw adjustments.
Looking at the flow of major capital, the main funds in the Shanghai and Shenzhen markets saw a net outflow of 20.742 billion yuan, and the CSI 300 index reported a net outflow of 15.232 billion yuan, with both ending a two-day streak of net inflows. Across the two exchanges, 2,249 stocks recorded net inflows of major capital, while 2,951 stocks saw net outflows.
The stock attracting the highest net inflow of major capital was the optical module leader Tianfu Communication, while the stock with the largest net outflow was the lithium battery leader Contemporary Amperex Technology Co. Limited. Over the first four trading days of this week, Tianfu Communication saw a total net inflow of major capital exceeding 5.6 billion yuan, with its share price rising 31.73% during that period.
The communication sector recorded a net inflow of major capital exceeding 2.3 billion yuan. Among the 31 Shenwan first-level industries, 8 sectors saw net inflows of major capital, with the communication industry leading at 2.335 billion yuan. The basic chemicals, pharmaceutical and biological, and building materials sectors saw net inflows of 1.392 billion yuan, 410 million yuan, and 405 million yuan, respectively. The computer, media, and electrical equipment sectors experienced the largest net outflows, at 6.274 billion yuan, 5.127 billion yuan, and 4.404 billion yuan, respectively.
The communication sector rose 1.30% on August 6th, with a turnover of 214.739 billion yuan, ranking second among all sectors by trading volume, trailing only the electronics sector. Within the communication sector, the stocks with the largest net inflows of major capital were Tianfu Communication, Optical Technology, Changxin Bochuang, Accelink Technologies, and Huilv Ecology, with net inflows of 1.201 billion yuan, 577 million yuan, 368 million yuan, 358 million yuan, and 323 million yuan, respectively. All of these stocks rose on August 6th, with Huilv Ecology hitting its daily limit.
Tianfu Communication saw a net inflow exceeding 5.6 billion yuan this week. While many leading technology stocks experienced net outflows of major capital, Tianfu Communication continued to attract capital. On August 6th, all of the top ten stocks by net inflow of major capital in the Shanghai and Shenzhen markets rose, with JCET Group, Do-Fluoride New Materials, Kinwong Electronic, Youyan New Materials, and Founder Technology all hitting their daily limits. The stocks with the largest net inflows were Tianfu Communication, Shenghong Technology, JCET Group, Do-Fluoride New Materials, and Kinwong Electronic, with net inflows of 1.201 billion yuan, 894 million yuan, 744 million yuan, 739 million yuan, and 648 million yuan, respectively.
Tianfu Communication has been consistently favored by major capital since the start of this week. It saw net inflows of over 1.2 billion yuan on August 3rd, over 3 billion yuan on August 4th, and over 200 million yuan on August 5th, with total net inflows exceeding 5.6 billion yuan over the first four trading days. Driven by these sustained capital inflows, Tianfu Communication's share price has risen 31.73% since the beginning of the week.
Among the top ten stocks in the Shanghai and Shenzhen markets by net outflow of major capital, all fell except for Fenghua Advanced Technology and Zhongji Innolight, which saw slight gains. C Jialichuang fell over 11%. The stocks with the largest net outflows were Contemporary Amperex Technology Co. Limited, Fenghua Advanced Technology, and Dongshan Precision Manufacturing, with net outflows of 2.067 billion yuan, 1.601 billion yuan, and 1.334 billion yuan, respectively. The top ten stocks for net outflows were mostly technology stocks.
Regarding the A-share market, Industrial Securities commented that since August, with the easing of overseas liquidity shocks and emotional drags, as well as the gradual digestion of domestic equity pressure, the recovery of the AI industry chain has become a significant trading theme. In terms of performance across sub-sectors, three potential avenues for the current AI recovery are worth noting: the deep value recovery of upstream AI materials, the recovery of upstream computing power hard-tech assets, and the diffusion effect into mid-to-downstream software applications.