CSI 300 down 0.61%
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The A-share market is still in an attempted rebound phase. This week, the major indices generally showed a pattern of consolidation, divergence, and a gradually stabilizing center of gravity. The SSE Index(000001) fell 0.33% for the week, while the CSI 300(000300) declined 0.61%, reflecting a still-cautious tone. By contrast, growth stocks clearly outperformed: the Shenzhen Index(399001) rose 0.30%, and the ChiNext(399006) gained 1.77%, indicating that capital continues to flow toward technology growth and high-beta themes. In terms of moving averages, the SSE Index moved above its 10-day and 20-day averages, but remained below the 50-day and 200-day averages. The ChiNext, however, moved above its 5-day, 10-day, 20-day, and 200-day averages, showing stronger short-term recovery momentum. On the trading side, the final-day volume of the major A-share indices was generally below their 50-day average volume, and weekly turnover also fell versus the previous week. This suggests that incremental capital remains insufficient during the rebound, and the market is more of a structural recovery driven by existing funds.
Overseas markets were relatively stable this week. The Nasdaq Composite(0NDQC) rose 0.42%, and the S & P 500 Index(0S&P5) gained 0.53%, with the S & P 500 setting a 1-year high during the week, indicating that U.S. risk assets still retain resilience. The Hang Seng Index(HSI), however, fell 2.15%, showing more obvious near-term pullback pressure. External conditions have become less disruptive for A-shares, but weakness in Hong Kong equities also suggests that the recovery in risk appetite toward China-related assets remains fragile.
The main difference between domestic and overseas policy settings lies in the fact that the U.S. is placing more emphasis on inflation control, while China is prioritizing growth stabilization and counter-cyclical adjustment. U.S. July CPI came in at 3.4% year over year and 0.1% month over month, both in line with expectations and lower than the previous reading, suggesting that inflationary pressure has eased on a temporary basis and reducing the short-term need for the Federal Reserve to keep hiking rates. However, inflation is still above the Fed’s target, so a rapid policy shift toward easing remains unlikely. At the same time, initial jobless claims in the U.S. rose to 209,000, indicating a mild softening in the labor market. EIA crude inventories surged by 17.423 million barrels, suggesting near-term supply-demand conditions are looser in energy markets, which helps lower oil prices and ease imported inflation. In this environment, the Fed is more likely to remain in a wait-and-see posture under high rates, dynamically adjusting policy based on inflation and employment data.
Beyond monetary policy, protectionist elements in recent U.S. economic policy are also increasing. The decision to impose high tariffs on imported drones and related components shows that the U.S. is still using tariff tools to support domestic manufacturing and strengthen supply-chain security. Meanwhile, the hawkish tone surrounding developments in the Middle East will add uncertainty to energy markets and global trade chains. This means U.S. policy is not only about fighting inflation, but also about industrial competition and geopolitical strategy.
Domestically, policy remains focused on stabilizing growth, maintaining liquidity, and supporting structural transformation. The PBOC released its Q2 monetary policy implementation report and carried out 1 trillion yuan in outright reverse repo operations, reflecting a policy stance aimed at keeping liquidity reasonably ample and strengthening counter-cyclical adjustment. Against the backdrop of still-needing domestic demand recovery and rising external uncertainties, such measures help stabilize market expectations, reduce financing pressure, and provide financial support for the real economy’s recovery.
From the price level perspective, China’s July CPI rose 0.5% year over year, which is still within a mild recovery range, while PPI growth slowed, suggesting that overall price pressure remains manageable. This also provides room for monetary policy to stay flexible and moderately accommodative. Because inflation constraints are relatively weak, policymakers have more room to focus on stabilizing demand, employment, and markets.
Fiscal and industrial policies are also moving in tandem. Nearly 100 adjustments to tax incentive policies have signaled continued efforts to reduce burdens and support businesses. The expansion of housing provident fund withdrawal rules to cover renovation and property management fees should help stimulate household consumption and demand for housing-related services. At the same time, the pace of next-generation communication network construction is accelerating, and Shanghai has rolled out a series of plans centered on AI and computing power. This indicates that policy is speeding up efforts to cultivate momentum in the digital economy and technological innovation. The coal industry’s “15th Five-Year Plan” emphasis on increasing the share of large-scale modern coal mine capacity also shows that, while fostering new industries, policymakers are still reinforcing energy security and the upgrading of traditional industries.
In terms of sector performance, the market continued to show a rotational, structure-driven pattern this week. Funds were still mainly concentrated in low-base rebounds and theme catalysts, with clear divergence across sectors. According to the latest data, the top three gainers this week were Telecom Svcs-Wireless(G4892IG.CN), up 12.13%; Medical-Research Eqp/Svc(G8058IG.CN), up 6.44%; and Comml Svcs-Document Mgmt(G2751IG.CN), up 5.10%. Telecom Svcs-Wireless led the pack, reflecting continued fund attention toward communications infrastructure, carriers, and related network buildout. Expectations around communication transmission, data links, and next-generation infrastructure themes remain intact. Medical-Research Eqp/Svc also ranked near the top, showing that capital is beginning to spread into medical technology sub-sectors with medium- to long-term growth characteristics, supported by innovation and policy. Comml Svcs-Document Mgmt mainly reflects a catch-up move in a low-base niche segment, representing a phase of thematic digging as risk appetite recovers.
The Top 33 basket posted an average weekly return of -1.19%, with 11 names up and 22 down. Overall performance was clearly better than the broad-based selloff seen earlier, but it has not yet returned to a broad expansion of strong stocks. The best-performing stock this week was Gansu Golden Solar Co Ltd(300093), up 9.96%. Its O’Neil industry classification is Housing-Bldg Products (G3299IG.CN). The RS Rating is 94, indicating very strong price performance; the O’Neil Score is 66 and the EPS Rating is 67, suggesting above-average but not top-tier fundamental quality. However, its Industry Rating is only 126, which implies that the stock’s strength is driven more by themes and trading activity than by a strong industry backdrop. Continued sustainability will still need to be judged alongside price-volume action and fund flows.
Next week, 1,172 companies will release earnings, meaning the market has fully entered earnings season. At this stage, stock-level divergence usually widens significantly, and earnings delivery, management guidance, and post-earnings price-volume reactions will matter more than pure thematic narratives. For a market in rebound mode, if indices can continue holding the 10-day and 20-day moving averages after a low-volume consolidation, and if more high-quality stocks break out on strong volume after earnings, the rebound signal will become more convincing. If turnover keeps shrinking and leading stocks fail to broaden sustainably, the market may remain in a structure-driven rotational phase.
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published on August 14, 2026