On the first trading day of September, A-share markets experienced mixed performance throughout the session, with all three major indices closing higher. The Shanghai Composite Index rose 0.46%, the Shenzhen Component Index gained 1.05%, and the ChiNext Index surged 2.29%. Total trading volume across Shanghai and Shenzhen markets reached 2.75 trillion yuan. By sector, gold concept stocks, CPO, innovative pharmaceuticals, and memory chips led gains, while insurance, securities, defense, and banking sectors posted declines.

Looking back at August, A-share indices posted strong collective gains, with the Shanghai Composite Index breaking above the 3,800-point level. The Shanghai Composite rose 7.97% for the month, the Shenzhen Component Index climbed 15.32%, and the ChiNext Index soared 24.13%. Among industries, 30 out of 31 Shenwan first-tier sectors recorded gains, with the top three performers being telecommunications (34.41%), electronics (24.79%), and conglomerates (21.90%). Only the banking sector declined (-1.62%).

What market dynamics will unfold in September? Which "golden stocks" are institutions favoring? What allocation strategies are they recommending?

**September Expected to Continue "Slow Bull Market" with Attention to High-Low Rotation Amid Moderated Growth Expectations**

According to incomplete statistics, over 10 securities firms have released September investment portfolios and latest market views.

Across these reports, multiple institutions believe A-share markets are positioned to extend the "slow bull market" trend amid ample liquidity, though they suggest moderating growth slope expectations while watching for potential high-low sector rotation.

Changjiang Securities noted that A-share markets in September are expected to continue the "slow bull" trend supported by sustained inflows of incremental funds. Two key factors warrant attention: first, a Federal Reserve rate cut in September appears increasingly certain, and if implemented, global risk assets could benefit; second, the abundant liquidity environment also requires monitoring potential market high-low rotation possibilities.

Caitong Securities indicated that market sentiment has reached relatively elevated levels, with trading volume rising while volatility remains relatively restrained. Domestic and international liquidity remains abundant, providing support for medium-term market performance. Non-financial sectors across the A-share market show improving earnings performance, with some industries demonstrating independent prosperity cycles that may provide new market cues. Should trading volume contract after reaching high levels in the short term, markets may experience volatility, but adjustment room appears limited, presenting active opportunities to increase positions.

Soochow Securities believes that looking ahead to September, fundamentals will have limited impact on markets. Driven by liquidity, market trading volumes have reached historical highs. September overseas rate cuts may further strengthen liquidity feedback, but the marginal effect of new fund inflows is weakening. The market's upward momentum may slow compared to previous periods, potentially causing markets to once again shift from TMT and manufacturing themes to broader sector participation.

China Merchants Securities pointed out that looking toward September, markets have a high probability of maintaining upward volatility, though the growth slope may moderate relative to August. The key driving force currently comes from positive feedback formed by continuous incremental fund inflows following accumulated profit effects. Currently, retail investor market entry potential remains significant, suggesting indices still have upward room. However, as markets advance, profit-taking investors are also increasing, potentially causing the market's upward slope to moderate periodically. Additionally, September features important events, with the Federal Reserve expected to resume rate cuts and continued RMB appreciation supporting risk appetite maintenance. Overall, markets have a high probability of maintaining upward trends. Under current conditions, markets will continue expanding along low-penetration rate sectors.

Regarding sector allocation, multiple institutions mentioned potential high-low rotation within technology sectors, recommending attention to relatively undervalued directions like robotics, innovative pharmaceuticals, and defense. Additionally, under September Federal Reserve rate cut expectations, institutions also suggest focusing on TMT, non-ferrous metals, and non-bank financial sectors that benefit from synchronized monetary easing between China and the US.

**September Golden Stocks: Institutions Cluster Around ZTE Corporation Recommendations**

Among September golden stock selections from over 10 surveyed securities firms, ZTE Corporation was "named" three times, while Jiannanchun, Kingsoft Office, Amlogic, Leisai Intelligence, and Innolight each received two recommendations.

Selected recommendations include:

**1. ZTE Corporation (000063.SZ)**

Guosen Securities: (1) Leading domestic telecommunications equipment enterprise benefiting from AI development. (2) Chip breakthrough potential with expected future profitability improvement.

Zhongtai Securities: (1) Smart computing super-node progress exceeding expectations. (2) Breakthroughs achieved in proprietary chips and AI switching chips.

**2. Jiannanchun (000568.SZ)**

Soochow Securities: (1) Company maintains healthy channel order and inventory levels, positioned for light recovery preparation. (2) During the establishment of new price-volume equilibrium in premium liquor, the company's excellent execution capabilities in bottle-opening promotion and customer cultivation will play beneficial roles.

Huaan Securities: (1) Q2 industry acceleration clearing, Mid-Autumn and National Day sales expected to improve marginally, with decline potentially narrowing to Spring Festival levels. Overall fundamentals remain in a bottoming phase, but recovery expectations are emerging. (2) Current dividend yield of 4.6% provides downside support for stock price. (3) Valuation at low levels, with market high-to-low rotation, improving fundamental expectations, and stable real estate consumption promotion all serving as valuation recovery catalysts.

**3. Kingsoft Office (688111.SH)**

Dongxing Securities: (1) As the leading domestic office software company, growth potential is broad with excellent competitive landscape and steady personal business growth. (2) WPS365 showing impressive growth, with benchmark clients expected to continue demonstrating leadership effects. (3) WPS software positioned to benefit from IT innovation business recovery. Combined with accelerated commercialization of AI functions, the company's medium-to-long-term growth prospects are further enhanced.

Huatai Securities: (1) AI monthly active users continue rising, WPS 365 maintains high growth.

**4. Amlogic (688099.SH)**

Soochow Securities: (1) In AIoT fields, the company has engaged multiple leading clients with related products entering volume production phases. (2) Set-top boxes and TV segments stabilizing and recovering, with volume and price increases under ultra-high-definition replacement trends.

Huatai Securities: (1) 2Q25: Edge intelligence driving high AIoT sales growth.

**5. Leisai Intelligence (002979.SZ)**

Soochow Securities: (1) Industrial control industry continuing recovery in 2025, with sustained prosperity in 3C, logistics, machine tools and other sectors. (2) Humanoid robot mass production imminent, with company products gaining recognition from downstream core clients.

Huatai Securities: (1) Motion control veteran, humanoid robot rising star.

**6. Innolight (300502.SZ)**

Zhongyuan Securities: (1) Company achieving breakthroughs in silicon photonics modules, coherent optical modules, 800G LPO optical modules and other R&D projects. Benefiting from global AI infrastructure construction with strong demand for high-speed optical modules.

Disclaimer: This information is for reference only and does not constitute investment advice. Investors operate at their own risk.