A-share midday trading | The Shanghai index rose 0.32%, the index rose 1.73%, and the CPO concept strengthened
The Zhitong Finance App learned that on August 12, the three major A-share indices collectively fluctuated and strengthened after opening low, and the GEM index led the rise. The market showed a pattern of “the index opened low and went high, individual stocks rose more and less, and the direction of technological growth was fully active”. By the midday close, the Shanghai Index rose 0.32% to 3946.51 points; the Shenzhen Index rose 1.25% to 14438.07 points; and the GEM index rose 1.73% to 3610.65 points. Science and Innovation 50 surged 2.09% to 1745.15 points; Beijing Stock Exchange 50 rose 0.27% to 1116.26 points.
In the entire market, 3,694 stocks rose, 1,610 fell, 74 rose or stopped, none fell, and individual stocks rose more or less. The Shanghai and Shenzhen markets traded about 1381.9 billion yuan in half a day, down about 137.5 billion yuan from the previous trading day.
Overview of the plate
On the upward side, AI computing power hardware such as CPO, optical communications, and optical chips exploded, and many stocks in the sector rose and stopped; the laser industry and lidar followed the strengthening; the computing power leasing concept rebounded, and the urban area of Xiang Jiang and Yunsai Zhilian rose and stopped; innovative pharmaceuticals and CRO continued to be strong, and Baihua Pharmaceutical emerged from the 7-stage market; and technology sectors such as semiconductors, communication equipment, and electronic chemicals registered the highest gains.
In terms of decline, traditional weighted sectors such as coal, petroleum and petrochemicals, and banks performed poorly; conceptual sectors such as poultry and fentanyl had the highest declines.
Overall, capital was concentrated in the direction of AI computing power hardware and innovative drugs due to the overnight financial report of Lumentum, the leading US optical communications company, which exceeded expectations and catalyzed by the intensive introduction of industrial policies in Shanghai; the traditional cycle and defensive sectors experienced capital outflows. According to the Financial Services Association's Star Mining data, the main capital flows into sectors such as communications (over 7.5 billion yuan), electronics, and semiconductors in early trading, with net outflows from sectors such as pharmaceuticals, construction engineering, and biological products.
Popular sections
1. The CPO/optical communication concept has fully exploded
CPO, optical communications, and optical chip concepts strengthened sharply in early trading. Zhishang Technology rose and stopped 20cm, Yongding Shares and Tongding Internet rose and stopped, Tianfu Communications rose more than 8%, Shijia Photonics rose more than 8%, Taichenguang rose more than 7%, Optical Bank Technology rose more than 6%, and Xinyisheng and Zhongji Xuchuang rose more than 3%.
Comment: According to the news, overnight (August 11), after the US stock market, optical communications leader Lumentum announced results for the fourth fiscal quarter of fiscal year 2026, with revenue of US$1.01 billion, up 109% year on year, exceeding market expectations of US$988 million; adjusted earnings per share of US$3.23, up 267% year on year, higher than expected US$2.97; and non-GAAP gross margin rose to 50.4%. The company also provided revenue guidance for the first fiscal quarter of fiscal year 2027 of $1.23 billion to US$1.28 billion, with a median value of about 8% higher than market expectations. The CEO said that demand for ultra-high power CPO lasers is growing, ELS modules have received the first batch of orders, and optical technology is beginning to penetrate into the rack. The financial report further verifies the trend that AI computing power bottlenecks are spilling over from GPUs to high-speed optical connectivity.
2. The concept of computing power leasing rebounds
The computing power leasing concept strengthened in early trading. Chengdi Xiangjiang and Yunsai Zhilian both rose and stopped, while Hongjing Technology, Runjian Co., Ltd., Century Hengtong, and Co-Creation Data followed suit.
Comment: According to the news, the Shanghai Economic and Information Technology Commission issued the “15th Five-Year Plan for the Development of the Software and Information Service Industry in Shanghai” on August 11, proposing that the scale of the industry should reach 4 trillion yuan by 2030, and the value added of the industry will exceed 1.1 trillion yuan. The plan clearly implements the “10 million” intelligent computing cluster project to build 100,000 card-level hyperscale intelligent computing clusters in Songjiang, Lingang, Qingpu, etc. Furthermore, according to data from the Chinese Academy of Information and Communications Technology, the domestic computing power rental market reached 68 billion yuan in the first quarter of 2026, an increase of 62% over the previous year, and is expected to exceed 260 billion yuan for the whole year.
3. Innovative drug concepts continue to be strong
The innovative drug and CRO sectors continued to be active in early trading. Baihua Pharmaceutical broke out of 7 consecutive markets, Wanbang Pharmaceutical rose more than 10%, Yuheng Pharmaceutical rose more than 6%, and Harbin Pharmaceutical shares, Medici, and Baicheng Pharmaceutical followed suit.
Comment: According to the news, seven departments including the Shanghai Municipal Commission of Commerce issued the “Shanghai National Service Trade Innovation and Development Demonstration Zone Construction Plan” on August 10, proposing to support the innovative development of the biomedical industry, support the global registration and certification of innovative drugs, modern traditional Chinese medicines, and high-end medical devices developed by enterprises, and achieve local sales. Furthermore, overseas MNC and CXO companies continued to exceed expectations in their interim reports, providing emotional support to the sector. Note that Baihua Pharmaceutical announced on the evening of August 11 that the company is a CRO company that mainly develops small-molecule chemical generic drugs. It does not involve innovative drug research and development. The first quarter's revenue fell 30.68% year on year, net profit to mother fell 67.94% year on year, and the company's latest rolling price-earnings ratio was 184.25 times, which is significantly higher than the industry average of 34.96 times, and there is a risk of irrational hype.