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September 4th news, the three major indices closed lower collectively, with the Shanghai Composite Index experiencing a day of fluctuating adjustments, and the ChiNext Index and Shenzhen Component Index turning red during the session before falling back. In terms of sectors, pharmaceutical commerce stocks surged throughout the day, with Shuyu Civilian logging a 20cm limit-up, and Renmin Tongtai, Laobaixing, Jianzhijia, and Kaikai Industry all hitting the daily limit; the solid-state battery concept was strong, with Del Shares, Nandu Power, Dongfeng Group, and Fengyuan Shares all hitting the daily limit; the China Shipbuilding concept was active, with China Shipbuilding Technology leading the gains; oil and gas stocks weakened, with Zhongman Petroleum falling by more than 6%; the consumer electronics sector adjusted collectively, with Jinlong Electric Machinery (rights protection) leading the decline; non-ferrous stocks fell across the board, with Zijin Mining leading the decline. Overall, more stocks fell than rose, with over 3,800 stocks declining.

As of the close, the Shanghai Composite Index reported at 2784.28 points, down 0.67%; the Shenzhen Component Index reported at 8226.24 points, down 0.51%; the ChiNext Index reported at 1554.64 points, down 0.11%.

In terms of market performance, the pharmaceutical commerce, solid-state battery, and China Shipbuilding sectors led the gains, while the black home appliances, oil and gas extraction, and ST sectors led the declines.

Hot sectors:

1. Pharmaceutical Commerce

Multiple stocks such as Shuyu Civilian, Renmin Tongtai, Laobaixing, and Jianzhijia were active.

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CITIC Securities pointed out that according to the National Healthcare Security Administration, the balance of medical insurance funds has been growing steadily, with the current year's surplus rate decreasing from 20.45% in 2022 to 15.63% in 2023. The impact of the fund account reform is beginning to show, with individual accounts entering an era of stock. Price governance supervision is becoming stricter, the industry is shifting towards high-quality development, industry leaders are leading the way, and drug price monitoring and governance are expected to help the industry develop healthily and sustainably. Outpatient coordination is gradually being relaxed, and by February 2024, the pharmacy outpatient coordination policy has been implemented at varying stages in 26 provinces, covering 220 cities and involving 141,400 designated medical insurance pharmacies. The year 2024 is a key year for the implementation of outpatient coordination, with the potential for an increase in prescription outflow and a huge market space outside the hospital. Pharmacy medical insurance is also gradually entering an era of strong supervision, and the importance of standardization and product channel advantages is becoming more apparent, with listed companies steadily increasing their market share. The "dual-channel" system for drugs is progressing steadily, with the number of "dual-channel" nationally negotiated drugs expanding from 221 to 430, further highlighting the value of the outpatient channel, with more than 240 stores having the "dual-channel" system. The industry is entering a new stage of development, with the scale advantages of leaders continuously being reflected, performance growth being continuously realized, performance impact factors being gradually eliminated, and long-term benefits from the improvement of industry prosperity, with the advantages of leading pharmacies being worth paying attention to.

2. Solid-State Batteries

Multiple stocks such as Del Shares, Nandu Power, Power King Shares, and Dongfeng Group were active.In terms of news, it has been reported from the Qingdao Institute of Bioenergy and Bioprocess Technology, Chinese Academy of Sciences, that a research group led by Senior Researcher Wu Jianfei has developed a new lithium sulfide cathode material for all-solid-state lithium-sulfur batteries, with an energy density exceeding 600 watt-hours per kilogram. This research provides new methods and ideas for the development of high-energy-density all-solid-state batteries. Compared to the currently commercialized lithium-ion batteries, it offers more than double the energy density at a lower cost. The relevant research findings have been published in the international academic journal "Small."

Institutional Viewpoints:

Hengqin Life Fund stated that in the short term, after the index rebounded last Friday, the overall market has seen the realization of profit-taking positions, coupled with a slight decline in the August manufacturing PMI, indicating that the current real economy demand may still need further stimulation, causing emotional disturbances in the market. At the current stage of policy game, the market trading style may tend to be short-term, but if policies are implemented or there are signs of stabilization in the domestic economy, the market may welcome medium and long-term upward momentum. The favorable factors for Chinese assets are continuously accumulating. The Federal Reserve is expected to open the interest rate cut window in September, and domestically, there may be more room to introduce a series of measures to hedge against the economic downturn risk. In terms of allocation, we have confidence in the domestic equity market and recommend seizing the current low-position chips, closely monitoring the improvement of the bottom consumer sector and the rise of a new round of industrial cycles, mainly in the technology, pharmaceutical, and large manufacturing sectors, and actively exploring individual stocks with high long-term asset returns.

Zhengyuan Investment pointed out that although short-term economic data performance has slowed down, in terms of industrial structure, the new momentum represented by new quality productivity has shown a dazzling performance, and the transformation of old and new momentum has further accelerated. Looking forward to the fourth quarter, against the background of the recovery of overseas liquidity and the appreciation of the RMB, the greater room for monetary policy to loosen implies a further recovery of liquidity. More importantly, under the objective constraints of the slowdown in second-quarter economic data, the annual growth target of 5% requires more forceful counter-cyclical adjustment policies to be introduced and take effect. It takes time for policies to be implemented and to take effect. In the next few months, we believe that more forceful bottoming policies are expected to enter a period of rapid implementation, and the implementation and effectiveness of incremental policies are expected to drive the economy back to the track of repair. Coupled with the joint drive of the overseas interest rate cut cycle and the recovery of liquidity, the resonance of liquidity and policy effects will drive the market rebound. In the process of policy-driven economic recovery, the new quality productivity will take over as the economic pillar, and the establishment of domestic livelihood and demand circulation will drive the market into a medium and long-term reversal trend. Therefore, after the short-term adjustment, the cost-effectiveness of equity assets is once again highlighted, and we maintain an optimistic and cautious attitude, actively grasping the window period before the acceleration of policy implementation.