Overall, in the first three quarters, stocks with high "tech content" led the gains, while consumption-related stocks played "hide and seek" during the second phase of the bull market.

"Where are you hiding from the bull market?" A blogger on social media posed this "soul-searching question," which resonated widely among investors. In the comment section, multiple retail investors shared screenshots of stocks where they still face losses exceeding 50%, showing a sea of red.

Since the beginning of the year, A-share major indices have posted impressive gains: the Shanghai Composite Index rose over 14.2%, the Shenzhen Component Index gained over 21%, the STAR 50 Index climbed over 27%, and the ChiNext Index surged nearly 36%. However, looking at individual stocks, according to Wind data statistics as of September 8, 2,146 stocks posted gains below 14.2%, underperforming the broader market, accounting for nearly 40% of all stocks.

Overall, in the first three quarters, stocks with high "tech content" led the gains, while consumption-related stocks played "hide and seek" during the second phase of the bull market.

One in Every Four Stocks Gained Less Than 5%

Looking back at this year's market performance, on April 7, the US government announced retaliatory tariffs, causing global stock markets to plummet, with A-shares experiencing "Black Monday." The next day, national funds entered the market to increase holdings, followed by a series of positive developments. A-shares began their counterattack, with the Shanghai Composite Index hitting new highs consecutively, breaking through 3,600 points, then 3,700 points, and reaching 3,800 points.

A-share major indices showed broad gains, with STAR Market and ChiNext indices repeatedly hitting new highs. However, index gains don't represent universal stock appreciation.

Wind data shows that as of September 8, 2,146 A-share stocks posted gains below 14.2%, accounting for 40% and underperforming the Shanghai Composite Index. Among these, 1,331 stocks gained less than 5% year-to-date, representing 25% of all stocks. This means one in every four stocks gained no more than 5%.

Meanwhile, 896 stocks declined year-to-date, accounting for 17%. Holding these stocks meant missing out on the bull market.

Declining stocks were mainly concentrated in risk warning sectors, real estate, pharmaceuticals and biotechnology (traditional Chinese medicine, medical devices, pharmaceutical commerce, in vitro diagnostics, chemical pharmaceuticals), telecommunications equipment, food and beverages (liquor, snacks, seasonings), petrochemicals, textiles and apparel, utilities, and transportation.

For example, the real estate sector declined collectively, matching the sector's performance and current real estate environment. China Vanke Co.,Ltd. has fallen nearly 6% since the beginning of the year.

The liquor sector also declined significantly. Kweichow Moutai Co.,Ltd., which had dominated market capitalization rankings for consecutive years, traded in a W-pattern from February to June, after which its stock price remained relatively stagnant. Its total market capitalization was subsequently surpassed by Industrial And Commercial Bank Of China Limited and Agricultural Bank Of China Limited.

Although the banking sector performed well this year, individual stocks showed severe divergence. Agricultural Bank Of China Limited gained over 42% year-to-date, becoming A-share's current market capitalization leader, while Bank of Communications, also among the six major state-owned banks, declined nearly 3% year-to-date.

Additionally, nine delisting risk stocks, including *ST Mubang High-Tech Co.,Ltd., *ST Gohigh Networks Co.,Ltd., *ST Fujian Zitian Media Technology Co.,Ltd., and *ST Jiangsu Wuzhong Pharmaceutical Development Co.,Ltd., fell over 50% year-to-date.

Number of Hundred-Yuan Stocks Doubled

"The drought-stricken die of drought, the flood-affected die of floods." Since the beginning of the year, the bull market primarily benefited industries with high "tech content," such as artificial intelligence and robotics, innovative drugs, and solid-state batteries.

Wind data shows that as of September 8, there were 399 stocks that doubled in value, including 51 stocks that gained 200%, 9 stocks that tripled, 3 stocks that quadrupled, and 3 stocks that gained over 500%. Most top-performing stocks were related to the aforementioned industries or concepts.

The year's biggest gainer was Swancor Advanced Materials Co.,Ltd., which has risen over 1,000%. On the evening of July 8, the company announced that Zhiyuan Robotics and related entities would acquire at least 63.62% of shares through a two-step process to gain controlling interest. Subsequently, Swancor Advanced Materials began its meteoric rise. Previously, the company's stock price had long hovered around 7 yuan per share. Between July 9 and August 5, Swancor Advanced Materials accumulated 13 daily limit-up sessions.

Next was *ST Shenzhen Success Electronics Co.,Ltd., which gained over 700% year-to-date. The company previously announced plans to acquire 100% equity in three data center-related companies for 3.35 billion yuan in cash, constituting a major asset restructuring. Through this acquisition, *ST Shenzhen Success Electronics will transition from electronic manufacturing to the high-growth data center sector.

Victory Giant Technology(Huizhou) Co.,Ltd. gained over 500% year-to-date. This PCB (Printed Circuit Board) concept stock stated in a recent investor research activity that it aims to seize the historic opportunities brought by AI computing power technological innovation and data center upgrade trends, successfully capturing market opportunities. To consolidate its leading position in the global PCB industry and advantages in AI computing power and AI servers, the company continues to expand capacity for high-end products such as advanced HDI and high-multilayer boards.

Optical modules, optical chips, and optical communications were earlier market hotspots. The "Yi Zhong Tian" trio (Innolight, Accelink Technologies, and T&S Communications) all reached historical highs in early September. The ChiNext Artificial Intelligence Index, with over 40% "Yi Zhong Tian" weighting, gained over 60% year-to-date.

Solid-state battery concept stock Shanghai Emperor Of Cleaning Hi-Tech Co.,Ltd. successfully joined the triple-gain ranks with over 340% year-to-date gains. Xtc New Energy Materials(Xiamen)Co.,Ltd. also became a double-gainer with over 120% year-to-date gains.

Regarding stock prices, the bull market didn't significantly boost 1-yuan stocks. As of September 8, there were 31 stocks priced at 1 yuan across the market, little changed from 33 at the beginning of the year. However, 2-yuan stocks decreased substantially, currently at 117 compared to 182 at year-start.

Thousand-yuan stocks increased by one: Cambricon Technologies Corporation Limited. At the beginning of the year, Cambricon's stock price was less than half of Kweichow Moutai Co.,Ltd.; now they differ by only about 300 yuan. The number of hundred-yuan stocks nearly doubled, from 71 at the beginning of the year to 139 currently.

Continue Embracing AI Computing Power, Solid-State Batteries, Humanoid Robots

Since September, A-share markets have experienced volatile differentiation, with high-positioned tech stocks declining and some indices pulling back. Regarding current tech stock adjustments, multiple securities research reports believe the theme remains unchanged.

Hualong Securities noted that on one hand, some sectors experienced profit-taking as positive factors were realized, leading short-term funds to sell; on the other hand, after consecutive gains in some sectors, valuation expansion space was compressed, causing funds to switch to other undervalued directions. From current capital flows, funds remain focused on internal rotation within growth sectors, mainly because funds are still attracted to high-growth directions. Therefore, after flowing out of some growth sectors, funds still choose to enter other growth sectors with potential after some observation.

Soochow Securities research believes that tech stock adjustments have slightly impacted short-term market sentiment, but several indices haven't been significantly affected, mainly because high-low rotation has maintained market profitability. Market main hotspots still depend on tech stock performance, with AI, chips, lithography machines, liquid cooling, and CPO having repeated performance opportunities.

GF Securities believes adjustments are not the end. Looking at the medium term, core logic driving market upward movement hasn't changed. A-share valuations are at historically reasonable levels. Short-term adjustments are not the end; after clearing floating chips, market upward movement will be healthier.

China Merchants Securities Chief Strategy Analyst Zhang Xia divides historical bull markets into three phases, believing each phase forms different style and sector characteristics.

The first phase is mainly policy-driven, with small-cap style relatively outperforming, and non-banking financial, computers, and defense performing well. The second phase is mainly capital-driven, where track records matter, often choosing main themes or tracks for investment. The third phase is mainly profit-driven, where pro-cyclical and post-cyclical consumer industries perform well.

He believes we're still in the bull market's second phase. The core strategy after adjustment should be "embracing low-penetration tracks." Based on current industry trends, September should continue focusing on AI computing power, solid-state batteries, humanoid robots, and commercial aerospace/satellite internet. Additionally, focusing on high-quality strategies with high intrinsic returns remains effective.