New Energy Sector Leads A-Share Rally, Solar Giants Win Capital Favor

I. Market Overview: Three Major Indices Close Higher After Fluctuation

On July 28, 2026, the three major A-share indices fluctuated widely throughout the day and turned green at the close. By the end, the Shanghai Composite Index rose 0.38% to 3368.72 points, the Shenzhen Component Index rose 0.65% to 12745.16 points, and the ChiNext Index rose 0.92% to 2712.38 points. The combined turnover of the two markets exceeded one trillion yuan for the 18th consecutive trading day, reaching 1.13 trillion yuan. Northbound funds recorded a net purchase of 42.6 billion yuan for the day, with Shanghai-HK Stock Connect net buying 18.3 billion yuan and Shenzhen-HK Stock Connect net buying 24.3 billion yuan.

On the board, the new energy industry chain broke out across the board, with solar, energy storage, and wind power sectors leading gains, while previously strong semiconductor and consumer electronics sectors showed divergence and adjustment. Market sentiment was generally positive, with over 2,800 stocks rising and 85 stocks hitting limit-up.

II. Strong Rise of New Energy Sector

The biggest highlight of today's market was the new energy sector. Solar concept stocks rallied collectively, with solar ETF surging 4.2% by the close. Among individual stocks, Longi Green Energy rose 6.8% to 68.32 yuan, hitting a new three-month high; Tongwei Co. hit limit-up at 54.17 yuan; Sungrow Power Supply rose over 7%. On the news front, the National Energy Administration released the latest data showing that in the first half of 2026, new photovoltaic installed capacity nationwide increased 45% year-on-year, with distributed photovoltaic accounting for over 60% for the first time.

The energy storage sector was also active, with CATL rising 3.5% to 498.5 yuan, briefly breaking through the 500 yuan mark during the session. EVE Energy and Gotion High-tech rose 4.2% and 5.6% respectively. Industry insiders said that as provincial new energy storage allocation policies gradually fall into place, the energy storage industry is expected to enter a period of rapid growth.

Favorable Policies Roll Out Frequently

Recently, multiple departments have intensively rolled out new energy support policies. On July 26, the Ministry of Industry and Information Technology and four other departments jointly released the Guiding Opinions on Promoting High-Quality Development of the New Energy Industry, proposing that by 2027, the overall competitiveness of the new energy industry chain should be significantly improved, and key technologies such as solar and energy storage should reach internationally advanced levels. In addition, many local governments have also introduced local subsidy policies to further stimulate downstream demand.

Wang Ming, an analyst at Huatai Securities, believes that the policy front and fundamentals are resonating, and the new energy sector is expected to usher in a new upward cycle. From a valuation perspective, after the previous adjustment, the sector's overall P/E ratio has fallen back to a reasonable range, and leading companies offer high cost performance.

III. Capital Flows: Northbound Funds Heavily Increase Holdings in Leaders

On the capital front, northbound funds heavily bought new energy leaders today. According to Wind data, northbound funds net purchased CATL 8.2 billion yuan, Longi Green Energy 6.7 billion yuan, and Sungrow Power Supply 4.5 billion yuan. In addition, energy storage inverter leaders Jinlang Technology and GoodWe also saw net purchases exceeding 200 million yuan.

From the perspective of industry capital flows, the new energy sector saw main capital net inflow of over 15 billion yuan, ranking first among all industries. Meanwhile, financial sectors such as banking and insurance saw capital net outflow.

IV. Future Outlook: New Energy Main Line May Continue

Looking ahead, many institutions believe that new energy remains one of the market's main lines. CITIC Securities released a research report pointing out that the current new energy sector has three major positives: first, continued policy support; second, improving industry prosperity; third, attractive valuations. It recommends investors focus on leading companies in sub-sectors such as solar modules, inverters, and energy storage batteries.

However, some analysts also pointed out risks. The strategy team of Guotai Junan said that the new energy sector has recently risen significantly, and some individual stocks may be overbought in the short term, so investors should be cautious about chasing highs. At the same time, uncertainties such as foreign trade frictions need to be monitored.

V. Other Hot Sectors

Apart from new energy, there were several bright sectors in today's A-share market worth noting. First, the auto vehicle sector rallied in the afternoon, with BYD rising 3.2% to 295.6 yuan and Great Wall Motor rising over 4%. Second, the power sector performed steadily, with Huaneng International and Guodian Power closing slightly higher.

On the downside, the semiconductor sector saw a pullback, with SMIC falling 2.1% and NAURA Technology falling 1.8%. The consumer electronics sector also performed flat, with Luxshare Precision down 0.3%.

VI. Summary

Overall, the A-share market on July 28 showed obvious structural trends, with the new energy sector becoming the core direction of capital focus. Under the dual support of policy and fundamentals, the new energy main line is expected to continue, but investors also need to be aware of short-term volatility risks. Subsequent attention should be paid to signals that may be released from the Central Economic Work Conference at the end of July, as well as the intensive disclosure of listed companies' semi-annual reports.