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On Thursday, the three major A-share indexes fluctuated and closed lower, with bank stocks continuing to strengthen. Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China continued to set new historical highs.

Guotai Junan Securities' strategy believes that the essence of the leading rise of the four major banks is that the CSI 300 ETF is over-allocated by more than 10% in banks, coupled with institutional long-term under-allocation and no significant selling pressure. This can be indirectly confirmed by the fact that China Merchants Bank is not as strong as the four major banks and China State Construction Engineering Corporation in terms of stock price increase.

Treasury futures closed higher across the board, with the 30-year main contract up 0.58%. The Shanghai Securities News pointed out that in the last two days, the trading activity in the bond market has significantly decreased, with a contraction in market turnover.

The Hong Kong stock market opened higher, with the Hang Seng Index opening up 0.61%. Xiaomi's stock price rose by more than 9% after its performance report.

The Shanghai Composite Index closed down 0.27%, the Shenzhen Component Index closed down 0.82%, and the ChiNext Index fell 0.76%. Bank stocks rose again, with the share prices of the four major banks hitting new historical highs. More individual stocks fell than rose, with over 4,400 stocks declining across the market. The turnover of the Shanghai and Shenzhen markets today was 549.1 billion yuan, an increase of 39.6 billion yuan compared to the previous trading day.

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The Hang Seng Technology Index closed up 2.16%, and the Hang Seng Index rose 1.44%. Xiaomi's stock price surged by more than 9%.

Treasury futures closed higher across the board, with the 30-year main contract up 0.58%, the 10-year main contract up 0.3%, the 5-year main contract up 0.24%, and the 2-year main contract up 0.1%. In the last two days, the trading activity in the bond market has significantly decreased, with a contraction in market turnover.

The three major A-share indexes fluctuated and closed lower, with treasuries opening and trading higher throughout the day.

On Thursday, the A-share market adjusted throughout the day, and by the close, both the Shenzhen Component Index and the ChiNext Index continued to set new lows in the adjustment. Among them, the medical beauty, liquor, and daily chemical sectors led the decline. By the close, Shanghai Jahwa fell 9.96% close to the daily limit down, Shede Liquor fell 9%, and Hainan Coconut Island, Golden Seed Liquor, Jiugui Liquor, Gujing Gongjiu, and Jinshiyuan all declined.The Shanghai Securities News reports that the bond market is experiencing a deep tug-of-war between bulls and bears, while trading activity is becoming increasingly sparse. If the recent low trading volumes continue, it may indicate that the bond market is entering a low-volatility state, and market participants may also need to gradually adapt to an investment phase where coupon income is greater than capital gains.

Bank stocks have risen again, with China, ICBC, CCB, and BOCOM reaching new historical highs, and the Agricultural Bank of China increasing by more than 1.1%.

Huaxi Securities points out that the market is still fluctuating at low levels, and the difficulty of playing the overall trend is relatively high. The industry logic of low valuation, high dividends, and declining liability costs for bank stocks has not changed significantly, and attention should be paid to the rebound opportunities after the pullback.

In terms of news, the main regulatory indicators of commercial banks recently released by the National Financial Regulatory Administration show that, as of the end of the second quarter of this year, the non-performing loan ratio (also known as the non-performing rate) of commercial banks nationwide decreased by 0.03 percentage points from the end of the first quarter to 1.56%. The overall asset quality of commercial banks remains robust.

Treasury futures opened high and continued to rise throughout the day, closing with a collective increase. The 30-year main contract increased by 0.58%, the 10-year main contract increased by 0.3%, the 5-year main contract increased by 0.24%, and the 2-year main contract increased by 0.1%.

In terms of sectors, telecommunications operations, banking, railways, and textiles have shown strength against the trend.

Securities firms, basic metals, and education stocks are at the forefront of the decline, while online gaming, financial technology, artificial intelligence, and new energy vehicle concept stocks have seen a noticeable correction.

During the trading session, real estate stocks surged, with China Communications Construction Real Estate reaching the daily limit, and World Union, Binjiang Group, Tianbao Infrastructure, Tefa Services, and Financial Street quickly following suit.

The stock price of Aesthetic Medical, known as the "Moutai of Medical Beauty," plummeted, falling as much as 12.6% during the session, setting a new low since October 2020. In terms of news, Aesthetic Medical released its semi-annual report for 2024 last night, which showed that the revenue and net profit growth rates for the second quarter both fell into single digits, causing concern among market funds.

The Science and Technology Index surged by 2.16%, with technology stocks showing strength throughout the day.The three major Hang Seng indices rose in the afternoon, with the Hang Seng Tech Index closing up significantly by 2.16%, and the Hang Seng Index rising by 1.44%.

Technology stocks once again exerted strength in the afternoon, leading the market's rise. Xiaomi, which exceeded earnings expectations, surged nearly 10% at one point, JD.com rose by 3.5%, and NetEase and Alibaba both increased by over 2%. Baidu, Tencent, and Meituan all saw gains of more than 1%.