Goldman Sachs China Midday Market Commentary # Trading Desk

English summary

Morning session index performance: Shanghai Composite Index fell 0.98%; SSE 50 Index fell 1%; Shenzhen Composite Index fell 3.42%; ChiNext Index fell 5.37%. Two-market turnover was 1.35 trillion yuan, down 1.4% from the same period yesterday. Market interpretation: Dragged by overall weak global markets, A-shares opened lower and declined today, but performed stronger relative to Asia-Pacific markets. In the morning session, more than half of stocks closed in the red, with small and mid-cap stocks recovering. Overnight, U.S. tech stocks saw a broad sell-off, suppressing sentiment in global tech sectors. Domestic AI-related chains broadly weakened, with the optical communication CPO sector falling 6.45%, followed by MLCC, GPU, and memory chip sectors. However, Changxin Storage (CXMT) was relatively resilient, closing the morning at 48.2 yuan, down only 1.63%. The logic of capital rotating to safe havens is evident: consumer and financial sectors saw stronger buying, with funds flowing into traditional economy sectors that had previously lagged as safe-haven assets.