Summary: ① The new energy sector is experiencing a collective rebound, and its sustainability is still a key focus in the recent market. ② According to the China Securities Regulatory Commission, under multiple policy supports, China's capital market mergers and acquisitions are entering an "active period", and it is expected that the direction of future state-owned enterprise reforms will remain active. ③ The Huawei Full Connection Conference, held from September 19th to 21st, still leaves room for market speculation on the Huawei chain.

Yesterday, the market continued to show a differentiated trend. Benefiting from the collective rebound in the new energy sector, the ChiNext Index rose more than 1%, while the Shanghai Composite Index hit a new low in its adjustment. Although the direction of dividend-weighted stocks has been experiencing significant declines recently, the previous strong stocks' decline is often a common signal at the end of the market adjustment. In fact, many individual stocks have stopped following the decline of the Shanghai Composite Index. With the recent surge in trading volumes of ChiNext ETF and China Southern CSI 1000 ETF, the market style may gradually shift towards the ChiNext and small-cap stocks.

As for the market situation, the new energy sector has experienced a collective rebound. Lithium mining and lithium battery sectors have achieved the highest gains. On the news front, news broke during yesterday's session that Ningde Times has stopped production at its Yichun carbonate mine. After the market closed, Ningde Times responded, stating, "Based on the recent lithium carbonate market conditions, the company plans to adjust the production arrangement for Yichun carbonate." In addition, Nine dragons lithium industry, another major lithium mining company in Jiangxi, also announced a production shutdown for maintenance. However, it should be noted that the reduction in lithium mining production is more of a short-term boost to lithium carbonate prices and has limited support for the medium-term supply and demand fundamentals. Therefore, it will take some time for the lithium mining industry to reach a true turning point in the cycle.

As for the market performance, although the new energy sector saw a collective surge yesterday, individual stocks still fell more than they rose, and trading volume decreased. If we only look at the market performance of the past day, the new energy sector did not resonate with the index. However, it is worth noting that with the increase in trading volume of some prominent lithium battery and photovoltaic weighted stocks, the traces of capital inflows are more obvious, and there may be a trend of upward volatility in the future.

In addition to the new energy sector, state-owned enterprise reform is still a key focus for the future. Data shows that since May 2024, A-share listed companies have disclosed a total of 46 major asset restructuring projects, with 7 equity restructuring projects submitted to the China Securities Regulatory Commission. Officials from the relevant departments of the China Securities Regulatory Commission stated that China's capital market mergers and acquisitions are entering an "active period". Therefore, there will still be repeated speculation about this direction. However, there is still significant volatility among specific individual stocks. While Baoding Tianwei Baobian Electric staged a "limit-up" yesterday, Shanghai Join Buy, which had a three-day consecutive rise, hit the limit-down. Therefore, the previous view on the direction of state-owned enterprise reforms remains the same, considering it as an extra bonus for thematic investments with a higher probability of success.

In addition, the Huawei industrial chain is also worth continuous attention. The next focus will be the Huawei Full Connection Conference held from September 19th to 21st. Under the expectation of speculation, there may be expectations of renewed activity in the following two trading days. It will be important to pay attention to the possibility of a transition from hardware to software speculation in the Huawei theme.