On the morning of July 16, the market commenced trading on a weaker note, experiencing a brief rebound before sliding back into a state of volatility, with the GEM Index notably underperforming. During the morning session, trading volume on the Shanghai and Shenzhen stock exchanges amounted to 1.48 trillion yuan, marking a 235.1 billion yuan decrease from the previous trading day. Despite the overall market weakness, over 3,200 stocks managed to close higher. Sectors such as edge AI, pharmaceuticals, film and cinema, and PCBs defied the broader market trend, with numerous stocks within these sectors reaching their daily price limits. Memory chip concept stocks, however, continued their downward trajectory, with Demingli hitting its daily limit for two consecutive trading days. By the midday break, the Shanghai Composite Index had declined by 0.82%, the Shenzhen Component Index by 0.83%, and the GEM Index by a more pronounced 1.73%.