Chinese A-shares maintained a narrow trading range today, with small-cap stocks showing overall activity; Hong Kong stocks were relatively strong, with the Hang Seng Index rising by over 1%.

Specifically, the three major stock indices fluctuated within a narrow range during the session. By the close, the Shanghai Composite Index edged up by 0.04% to 2,855.52 points, the Shenzhen Component Index rose by 0.16% to 8,194.65 points, and the ChiNext Index fell by 0.10% to 1,545.31 points. The North Evidence 50 Index gained 0.49%, the China Securities 2000 Index rose by over 1%, and the Wind Micro-cap Index surged by 2.6%. The combined turnover of the two markets was 526.5 billion yuan, slightly higher than last Friday.

Over 3,800 stocks turned red in the market, with resource stocks such as oil, metals, chemical, and steel rising collectively. The construction sector was active, with stocks like Jianke Shares, Jianyan Institute, and Shanghai Jianke hitting the daily limit. The solid-state battery concept exploded, with stocks like Lu Shan New Materials and Fengyuan Shares hitting the daily limit. The folding screen concept was also active, with stocks like Golden Sun, Jingyan Technology, and Del Future hitting the daily limit. Wantai Bio, with a market value of over 90 billion yuan, quickly rose in the afternoon, touching the daily limit at one point; however, Guozhong Water Resources was locked at the daily limit down. In addition, Xiaofang Pharmaceutical, which debuted on the Shanghai main board today, surged by 167% to 33.3 yuan, with a peak increase of 212.8% during the session at 39 yuan. Based on the closing price, the profit per lot for this stock is about 10,000 yuan, and based on the highest price, the profit per lot reaches 13,000 yuan.

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Hong Kong stocks rose strongly, with both major indices up by about 1%. By the close, the Hang Seng Index was up by 1.06% at 17,798.73 points, and the Hang Seng Tech Index was up by 0.98% at 3,502.96 points. In terms of individual stocks, WuXi Biologics rose by nearly 7%, WuXi AppTec was up by over 5%, and Dongfang Selection and Nongfu Spring were up by over 6%; Greentown Management Holdings plummeted by nearly 32%.

It is worth mentioning that another positive signal has emerged in A-shares, with the number of companies distributing dividends in the middle of the year continuously increasing. Choice data shows that, as of now, there are more than 370 A-share listed companies (including those that have already implemented) planning to distribute dividends in the middle of 2024, surpassing the 195 companies that distributed dividends in the middle of last year. The number of dividend-paying companies has reached a historical high, with a total planned dividend amount exceeding 160 billion yuan. In terms of industry dividend scale, the communications, banking, and non-ferrous metals industries lead in mid-year dividend amounts.

Construction sector lifts

The construction sector rose strongly during the session, with stocks like Jianke Shares, Jianyan Institute, National Inspection Group, Shanghai Jianke, and Xinjiang Transportation Construction hitting the daily limit by the close, and Shenzhen Ruijie rising by over 8%.

In terms of news, the Political Bureau of the CPC Central Committee held a meeting on August 23 to review the "Several Policy Measures for Further Promoting the New Pattern of Western Development." The meeting pointed out that the development of the western region is a major strategic decision made by the Party Central Committee. It is necessary to deeply understand the strategic intentions of the Party Central Committee, accurately grasp the positioning and mission of the western development in promoting Chinese-style modernization, maintain strategic determination, and consistently implement it. Focus on major protection, major opening, and high-quality development to accelerate the construction of a new development pattern and enhance the overall strength and sustainable development capabilities of the region.

In response, Dongwu Securities stated that the meeting pointed out the focus on major protection, major opening, and high-quality development, accelerating the construction of a new development pattern, and enhancing the overall strength and sustainable development capabilities of the region. Relevant policy measures are expected to accelerate the further improvement of infrastructure and urbanization development in the western region, driving the demand for engineering construction and related materials.

In addition, the Ministry of Housing and Urban-Rural Development recently stated that the goal of the battle to ensure housing delivery is locked on the 3.96 million housing units that have been sold but not yet delivered. In terms of increasing the construction and supply of affordable housing, it is necessary to formulate a five-year plan and annual plan for affordable housing according to local conditions, implement fiscal, land, and financial support policies for projects included in this year's plan, and accelerate the start and construction progress of projects. This year, the plan is to complete the renovation of more than 50,000 old residential areas and strive to renovate more than 100,000 kilometers of various old pipelines. Research and establish a housing health check, housing pension fund, and housing insurance system.The aforementioned institutions believe that this move is expected to improve the funding sources and decision-making efficiency in the renovation of old residential areas, with potential benefits for building inspection, waterproof pipelines, and paint-coated doors and windows.

Solid-state battery concept surges

The solid-state battery concept saw a collective rise, with Penghui Energy surging by more than 19%, and a significant increase of over 60% in the recent four trading days; Tianli Lithium Energy rose by nearly 15%, and Fu Gao Technology, Xiangfeng Hua, Menggu Li, and Shengyang Shares all increased by more than 10%.

In terms of the industry, Penghui Energy recently announced that there has been a significant breakthrough in all-solid-state batteries, and the Penghui Energy Product Technology Conference will be held on August 28, 2024, with a series of major new products to be released.

GuoXuan High-Tech also recently stated that the company has achieved the preparation and basic performance verification of vehicle-grade all-solid-state batteries, marking a breakthrough from 0 to 1 for all-solid-state batteries. It has successfully passed the rigorous 200-degree Celsius thermal box test, providing a new implementation route for high-energy and high-safety battery systems.

HuaXi Securities indicated that recently, the (semi-) solid-state batteries of many companies have been continuously advancing in terms of performance improvement and mass production progress, which is expected to accelerate the industrialization process of (semi-) solid-state batteries. According to GGII's forecast, (semi-) solid-state batteries are expected to achieve large-scale vehicle installation in 2024, with the annual installation capacity expected to exceed 5GWh. In terms of materials, the solid electrolytes used in solid-state batteries can be compatible with higher capacity positive and negative electrode materials, such as ultra-high nickel positive electrodes, lithium-rich manganese-based positive electrodes, silicon-based negative electrodes, and lithium metal negative electrodes. Manufacturers who take the lead in laying out solid-state batteries and related industry chains are expected to benefit from the accelerated industrialization process. In addition, the high nickel, even ultra-high nickel ternary materials compatible with solid-state batteries have poor conductivity, and the conductivity of silicon-based negative electrodes is also inferior to graphite. Carbon nanotube conductive agents can improve the poor conductivity of both, so manufacturers related to carbon nanotube conductive agents are expected to benefit from the continuous advancement of the solid-state battery industrialization process.

Foldable screen concept is active

The foldable screen concept was active again today, with Jin Tai Yang, Jing Yan Technology, Chang Xin Technology, De Er Future, and Skyworth Digital all hitting the daily limit.

There are reports that Apple is researching the production of a foldable iPhone, which could be launched as early as 2026.

It is reported that since June, mainstream smartphone manufacturers such as Honor, Samsung, Xiaomi, and Huawei have successively updated their foldable screen phone products. Honor and Xiaomi both launched their first vertically folding small foldable screen phones for the first time, continuously enriching their product lines. Samsung, as the earliest manufacturer to launch foldable screen smartphones, has updated both large and small folding products to the sixth generation. Huawei's mid-range brand Nova has launched its first foldable screen product line for the first time, and a triple-folding screen smartphone is also expected to be launched in 2024.Debang Securities noted that Apple, as the global leader in smartphones, is expected to launch foldable iPhone and iPad products after 2026. According to Counterpoint data, in the first quarter of 2024, driven by Huawei, Honor, and Motorola, global shipments of foldable smartphones grew by 49% year-on-year. With user pain points such as battery life, weight, and software adaptation gradually being addressed, foldable smartphones are expected to enter a period of rapid growth.

Wan Tai Biotech temporarily hits the daily limit

Vaccine leader Wan Tai Biotech (603392) saw a rapid increase in the afternoon, temporarily hitting the daily limit, and closed up 3.9% at 72.71 yuan, with the latest market value of 92.2 billion yuan.

The company announced after the market today that its wholly-owned subsidiary, Xiamen Wantai Canghai Biotechnology Co., Ltd., received the "Acceptance Notice" for the marketing authorization application of the "Recombinant Human Papillomavirus (HPV) 6/11/16/18/31/33/45/52/58 Type 9-valent Vaccine (Escherichia coli)" (hereinafter referred to as "9-valent HPV Vaccine"), jointly developed with Xiamen University, from the Center for Drug Evaluation of the National Medical Products Administration. It is reported that this is the first domestic 9-valent HPV vaccine to be filed for marketing.

The company stated that the successful approval and launch of the 9-valent HPV vaccine will be beneficial for the promotion and use of the company's HPV vaccines, enrich the company's product line, further enhance the company's core competitiveness, and lay a solid foundation for the company's continuous and stable development. However, according to the relevant national regulations on vaccine registration management, after the marketing registration application for the 9-valent HPV vaccine is accepted, it needs to go through comprehensive evaluation, on-site production inspection, and other procedures, and there is still uncertainty about the final approval and the time of obtaining approval.

A-shares are experiencing a "mid-term dividend tide"

Reporters have found through statistics that in recent years, the willingness of listed companies to pay cash dividends, the amount of dividends, and the stability of dividends have been continuously increasing.

Choice data shows that, as of now, more than 370 A-share listed companies (including those that have already implemented) are planning to pay mid-term dividends in 2024, surpassing the 195 companies that paid mid-term dividends last year, setting a historical high for the number of dividend-paying companies, with a total proposed dividend amount exceeding 160 billion yuan. Looking at the industry dividend scale, the communication, banking, and non-ferrous metal industries lead in mid-term dividend amounts.

In terms of the mid-term cash dividend per share in 2024, companies such as Gibit, China Mobile, Anjoy Food, Dong'e E-jiao, Ganyuan Food, and Action Education are all expected to pay more than 1 yuan (including 1 yuan) per share in cash dividends for this year's mid-term.