China's A-share market staged a volatile recovery on the morning of August 21, with the ChiNext Index gaining 1.21% by midday, the Shenzhen Component Index rising 0.63% and the Shanghai Composite Index turning positive after an early decline. More than 3,500 stocks fell, highlighting the market's structural divergence between large- and small-cap shares. Combined turnover on the Shanghai and Shenzhen exchanges reached 1.25 trillion yuan, or approximately $186 billion, down 117.9 billion yuan, or about $17.5 billion, from the previous trading day, although activity remained above 1 trillion yuan. Computing-power hardware, lithium mining, pharmaceuticals and liquid-cooling server stocks led selected gains, while agricultural shares weakened. Yingda Securities described the market as balancing bottoming-out and technology-sector consolidation, advising investors to buy on dips rather than chase rallies. China Merchants Bank Research Institute said tech self-reliance and domestic computing power remain core themes, while warning that narrowing upside and greater internal divergence warrant lower return expectations and stronger risk controls. Analysts see the market as driven mainly by rotation of existing capital, with structural opportunities likely to remain dominant amid limited incremental funds and persistent external uncertainty.