Today's A-shares displayed extreme structural differentiation, with a complete shift in the mainline market. Hard tech (semiconductors/storage) exploded across the board, while high-position power and computing themes collectively retreated. There was a massive shift in funds between high and low positions, with the STAR Market hitting a new historical high. The market's profit-making effect is highly concentrated. Below, we will conduct a comprehensive review from the perspectives of theme rotation, fund flow, and the leaderboard, and provide actionable investment strategies for tomorrow.

1. Overview of the Market

Index Performance: The Shanghai Composite closed at 4162.18 points, down 0.18%; the Shenzhen Component was flat; the ChiNext rose 0.34%; the STAR Market surged 3.2%, hitting a new all-time high, with hard tech leading the entire market.

Volume and Sentiment: The two markets transacted 2.98 trillion yuan, with a volume increase of 67 billion, liquidity is sufficient; over 3800 stocks declined, only 1599 rose, 70 stocks hit the limit up, 37 stocks hit the limit down, extreme divergence, non-main stocks broadly decline.

Core conclusion: The market's main line has switched, semiconductors / storage chips officially become the new main line, the previous high-position power and computing themes enter a major decline phase, northbound funds significantly increase positions in the tech direction, the style has fully shifted towards hardcore growth.

2. Sector Rotation: Dramatic switching between old and new main lines, stark contrast

(1) Today's strongest main line: The entire semiconductor industry chain (absolute main line)

Core Catalysts: Yangtze Storage IPO initiated, domestic substitution accelerates; AI computing demand explodes, storage chip performance exceeds expectations; funds in the sci-tech board coalesce, Sci-tech 50 skyrockets.

Sub-sector explosion direction: Storage chips, advanced packaging, photolithography machines, electronic chemicals all surge, SMIC up 12.3%, Zhaoyi Innovation, Lianyun Technology, Shanghai Hejing hit the limit up, Cambrian, Huahong Company reach all-time highs.

Strong sub-sectors: Liquid cooling concepts remain active, Chuanrun Co. hits 3 consecutive limit-ups, Hongsheng Co., Yinlun Co. hit the limit up, computing support themes resist downturns.

(2) Today's collapsing main line: Power / Utilities (old main line retreating)

The power sector collectively collapsed, with leading stocks like Jingneng Power, Datang Power, and Jinkong Power hitting the limit down; the trigger was several power companies clarifying no computing power business, combined with the normalization of negative electricity prices and rising coal prices squeezing profits, the previously speculated 'computing + power' logic is invalidated, with high-position funds concentrated on exiting.

(3) Weak sectors in rotation

Leading declining sectors: Media, AI applications, non-ferrous metals, lithium mining, previous high-position themes seeing profit-taking, with obvious catch-up declines;

Defensive sectors: Banks, shipping, fine chemicals slightly resist declines, only attracting a small amount of hedging funds;

Low-position recovery: Some ST stocks and low-position consumption slightly rebound, with no sustainability.

Rotation logic: Funds fully escape from high-position sentiment themes (power, computing small stocks) and concentrate on hardcore tech (semiconductors / storage), with policy + performance + funds creating a triple resonance, establishing the main line's position.

3. Fund Flow: Main institutions adjust their portfolios, northbound funds aggressively accumulate hard tech

1. Northbound funds (core barometer)

Net inflow throughout the day 4.2-14.2 billion (core transactions), Shanghai Stock Connect significantly increases positions, focusing on buying Cambrian, Lanke Technology, Zhongwei Company, Zhongji Xuchuang and other semiconductor, computing hardware leaders, firmly bullish on the sci-tech growth track.

2. Main Funds (significant sector divergence)

Overall net outflow throughout the day, but a stark structural divergence:

Net inflow direction: Semiconductors (+8.9 billion), storage chips (+4.6 billion), electronic components, banks, hard tech attracts hundreds of billions in funds;

Net outflow direction: Power, media, computers, telecommunications, non-ferrous metals, the power sector saw a net outflow of over 10 billion in a single day, previous high-position themes faced collective selling.

3. Core Logic of Funds

The market shows a seesaw effect: Defensive funds + institutional funds coalesce in the hardcore semiconductor track, short-term speculative funds escape from power, with some flowing into liquid cooling and storage segments; small stocks and high-position themes suffer severely, only the main line has a profit effect.

4. Dragon and Tiger List: Institutions and speculative funds diverge, semiconductors receive fund support, power funds exit

1. Top net buy targets on the dragon and tiger list

Juli Rigging: Net buy of 691 million, Chen Xiaoqun, Hongling Road and other speculative funds bottom-fishing, betting on oversold rebound;

Duo Fluorine: Net buy of 508 million, cooperation between institutions and speculative funds, lithium battery materials rebound from low positions;

Jingfang Technology: Net buy of 312 million, speculative funds from Zhongshan Road and others hit the board, core target for advanced packaging.

2. Top net sell targets on the dragon and tiger list

Hongxin Electronics: Net sell of 491 million, cashing out on high-position computing hardware;

Zhongke Feice, Huahong Company: Faced with large-scale sell-off from institutions, divergence in high-position semiconductor targets intensifies;

Datang Power, Jingneng Power: Power leaders face collective sell-off from speculators, hitting the limit down.

3. Institutional & Speculative Fund Movements

Institutions: Increased positions in Hongxin Electronics, Duo Fluorine, Zhongke Feice, reduced holdings in Huahong Company, Runjian Co., high-position divergence in semiconductors, low-position segments still recognized;

First-line speculative funds: Zhang Mengzhu sells Suochen Technology, Chengdu faction buys Chuanrun Co. (leader in liquid cooling), trader Xin Yi cashes out on computing targets, funds shifting from old main lines to new ones;

Quantitative funds: Reduced holdings in high-position power and small computing stocks, laying out positions in low-position semiconductor targets.

5. Investment Recommendations for Tomorrow (May 21)

(1) Market Expectations

Index: The Shanghai Index has strong support at 4140-4150 points, undergoing consolidation; the sci-tech 50 continues to be strong with high-position fluctuations; the ChiNext follows the tech main line with slight strength;

Main line: Semiconductors / Storage chips (core) > Liquid cooling computing support > Low-position defensive sectors; Power and high-position computing themes continue to decline, firmly avoid;

Sentiment: Divergence increases within the main line, high-position semiconductors fluctuate severely, low-position segments rebound, small stocks continue to bleed, only engage with the main line, not the fluff.

(2) Position Control

Total position 40-50%, heavily weighted in the main line, empty in non-main line, do not chase high-position semiconductor leaders, buy dips in low-position segments, reserve 20% of funds for trading.

(3) Key Focus Directions (priority order)

Semiconductors / Storage chips (core main line, must do) low-position segments: advanced packaging (Jingfang Technology, Tongfu Microelectronics), storage chips (Zhaoyi Innovation, Langke Technology), electronic chemicals; core leaders: Cambrian, SMIC (buy on dips during divergence, don't chase up);

Liquid cooling computing support (strong sub-sector): Chuanrun Co., Hongsheng Co., betting on continuous limit-up;

Defensive hedging (backup): Banks, shipping, fine chemicals, position control at 10%, only for hedging;

Absolute avoidance: Power / Utilities, high-position computing small stocks, media, high-position non-ferrous metal targets, adjustments not yet over.

(4) Specific Operational Discipline

Buying on dip principle: Buy in batches when the index retraces to support levels, and main line targets correct by 3%-4%; do not hit the boards for high-position semiconductor leaders;

Take profit: When main line targets rebound to the 5-day moving average, lock in profits with a 6%-10% reduction, don't hold onto high positions;

Stop-loss: If individual stocks drop below the 5-day moving average, and losses reach 4%, decisively stop-loss, don't linger on non-main stocks;

Strictly prohibited operations: Do not bottom-fish in power, computing old main lines, do not participate in illiquid small stocks.

6. Risk Warning

Divergence in high-position semiconductors triggers sector pullback as profit-taking occurs;

The old main lines of power and computing continue to decline, dragging down market sentiment;

Northbound funds outflow, US tech stocks fluctuate, impacting the sci-tech track.

The above content is for market analysis reference only and does not constitute any investment advice.