REITs Growth; Tax, Low-Rate Advantages.

This morning, influenced by the significant drop in global markets, the A-shares opened across the board lower, with the Shanghai Composite Index directly falling below the 2800-point mark, setting a new low for this phase, while the CSI 300 and the SSE 50 also hit recent lows. Technology growth stocks demonstrated strong resilience, with the ChiNext Index turning red during the session.

On the market, sectors such as solid-state batteries, commercial chains, public transportation, and telecommunications operations were relatively active, while oil, consumer electronics, non-ferrous metals, and virtual reality sectors saw the largest declines.

Commercial Chains Defy the Trend and Strengthen

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The commercial chain concept opened slightly lower in the morning, then defied the trend with a straight-line lift, with the sector index at one point surging by more than 1% in volume.

Shuyi Pingmin's stock price soared to a 20% daily limit increase within about 2 minutes after the market opened, while Laobaixing and Shensai Ge both continued to hit the daily limit for the second consecutive day, and Renmin Tongtai also quickly hit a straight-line daily limit increase.

Recently, the Ministry of Commerce released the first batch of excellent practice cases for urban "15-minute convenience life circles," including 15 city cases and 5 street community cases from Beijing, Shanghai, Xi'an, and others. As of the end of June 2024, pilot areas for the "15-minute convenience life circle" had built 3,946 convenience life circles, serving 76.76 million community residents.

Last year, the Ministry of Commerce and 12 other departments jointly issued the "Three-Year Action Plan for Comprehensively Promoting the Construction of Urban '15-Minute Convenience Life Circles (2023-2025)," proposing that by 2025, the construction of various types of "15-minute convenience life circles" will be fully promoted in cities and prefectures across the country with conditions. The plan proposes five key implementation focuses, including systematic planning and design, optimizing community business layouts; improving consumption conditions, enriching resident consumption formats; innovating consumption scenarios, enhancing diverse consumption experiences; promoting technological empowerment, improving smart and convenient levels; and promoting employment and entrepreneurship, increasing the income of community residents.

Most of the commercial chain concepts that rose sharply today are related to pharmaceutical commercial stores, such as Shuyi Pingmin, Laobaixing, Renmin Tongtai, Kaikai Industry, and others.

With the increasing emphasis on health, as a key link connecting pharmaceutical manufacturers and pharmaceutical consumption terminals, the pharmaceutical commercial sector is rapidly developing. According to estimates from the China Pharmaceutical Industry Information Center, the pharmaceutical commercial market size is expected to reach 100 billion yuan in 2024, a year-on-year increase of 10%, accounting for 19.4% of the pharmaceutical manufacturing market.

On the policy front, there is also a strong push for the development of medical insurance payment work. The National Healthcare Security Administration previously issued the "Interim Measures for the Designated Management of Medical Institutions under Medical Insurance" and the "Interim Measures for the Designated Management of Retail Pharmacies under Medical Insurance," stipulating that medical institutions and retail pharmacies that meet the conditions can be included in the designated medical insurance management by applying for and signing a medical insurance agreement, and clarified the basic conditions and procedures for the agreement signing.CITIC Construction Investment stated that the pharmacy sector is expected to see a strong improvement in operating margins: 1. Consumer spending is expected to improve marginally, coupled with the gradual decline in the impact of household inventories of four types of drugs, and the demand for medication is expected to continue to be released; 2. The outpatient coordination policy is becoming clearer, and the marginal improvement in single-store growth is expected to be strong; 3. The impact of high operating bases on margins is expected to weaken, and the growth rate of pharmacies may improve quarter by quarter; 4. Valuation has entered a historical low, presenting opportunities for allocation.

Solid-state battery industrialization is approaching.

New energy batteries collectively outperformed the market in the morning, with solid-state batteries leading the gains, the sector index increased by more than 3% with increased volume, setting a new high in over a month, with half-day transactions approaching the full-day transactions of the previous day.

Nantu Power has hit the 20% daily limit-up for the third consecutive day, and Del shares also hit the "20cm" daily limit-up. Dongfeng Group, Fengyuan Shares, and others have hit the daily limit-up.

Recently, at the 2024 World Power Battery Conference, industry companies showcased their solid-state battery products, attracting much attention. It is reported that there were a total of 137 signed projects at this World Power Battery Conference, with a total amount of 95.25 billion yuan.

Recently, several listed companies have announced their progress in the field of solid-state batteries through different channels, all of which have been warmly pursued by investors, and their stock prices have soared accordingly. For example, on August 30, Nantu Power stated through the investor interaction platform that the company has been working on the development of solid-state batteries since 2017 and undertook the key research and development plan for solid-state batteries in Zhejiang Province in 2020. Currently, the solid-state battery products have passed safety tests such as thermal box and short circuit, and all indicators have been successfully completed, with the project acceptance expected to be completed in the fourth quarter of this year.

Subsequently, Nantu Power hit the 20% daily limit-up for two consecutive days, approaching the highest point of the year, with the highest increase of up to 73% in just three trading days.

The investor relations activity record table announced by Del shares today shows that the company has established a Japanese subsidiary specializing in the research and development of solid-state batteries. The solid-state battery products will seek a wide range of application scenarios, including electric vehicles, wearable devices, drones, and daily consumer goods. Recently, the company signed a "Solid-State Battery Strategic Cooperation Agreement" with Jiangxi Jiangling Group New Energy Automobile Co., Ltd., and the research and development products will be equipped on the company's vehicles for verification.

In the morning, after opening slightly lower, Del shares quickly rose straight up with increased volume, hitting the 20% daily limit-up in less than 20 minutes, with transactions exceeding the full-day transactions of the previous day.

Shengyang Shares also stated on the interaction platform yesterday that the company's R&D team has carried out research and verification work on solid-state battery materials with multiple technical routes, and the company continues to pay attention to the development dynamics of solid-state battery technology. Recently, Shengyang Shares have shown a trend of rising against the market, with a trend far stronger than the same period of the overall market.CITIC Securities stated that since 2024, the solid-state battery industry in China has seen marginal changes such as the launch of semi-solid-state mass-produced vehicle models and a 1% penetration rate of semi-solid-state battery installations, signaling the arrival of industrialization. With advantages such as low technical route risk, a good "small steps, quick pace" rhythm, and abundant industrialization conditions, China is expected to win in the second half of the industrialization of semi-solid-state and all-solid-state batteries.