Chinese stock markets opened higher on Monday, with all three major indices posting gains. The ChiNext Index led the advance, rising over 2%.
By the midday break, the Shanghai Composite Index was up 0.06%, the Shenzhen Component Index had gained 1.17%, the ChiNext Index climbed 2.05%, and the STAR 50 Index advanced 1.2%.
More than 2,700 stocks across the market were trading higher. Sectors such as rare earths, fiberglass, copper-clad laminates, and batteries were among the top gainers, with communications equipment and electronic components also leading the rally. Conversely, shipping, insurance, real estate, and baijiu sectors were among the decliners.
Hong Kong markets, however, moved in the opposite direction, with the Hang Seng Index, the Hang Seng Tech Index, and the Hang Seng China Enterprises Index all in negative territory. The Hang Seng Biotech Index fell more than 2%. Individual stocks like Bilibili, Alibaba Health, Meituan, and Kuaishou all dropped over 3%.
Rare Earth Magnet Concept Stocks Soar
The minor metals sector surged in the morning session, with stocks related to rare earths, tungsten, and molybdenum all rallying strongly, leading to an explosive performance in the downstream rare earth permanent magnet sector.
Among individual stocks, Shenghe Resources Holding Co.,Ltd. (SHSE: 600392), Youyan New Materials, Huahong Technology, Zhongke Sanhuan, Xiamen Tungsten, and Changyu Group all hit their daily upside limits. Sanchuan Wisdom surged over 14%, Huicheng Environmental gained nearly 10%, while Zhongxi Youse, China Rare Earth, and Northern Rare Earth were also among the top performers.
Amid the wave of large-scale investment in AI computing power infrastructure, application scenarios for minor metals like tin, rare earths, tungsten, and molybdenum continue to expand. Due to their role in the computing power supply chain, these metals have been dubbed "computing power metals" by the market.
Guojin Securities expressed strong optimism for the outlook of tin, rare earths, tungsten, and molybdenum, citing solid support from supply and demand fundamentals. The firm believes high-quality resource companies are poised to benefit significantly. Tungsten is benefiting from increased strategic stockpiling overseas, creating a strong positive resonance in its supply-demand dynamics. The gradual depletion of hidden tin inventories points to a favorable long-term supply-demand structure, with potential macro liquidity inflows or spillover from the tech rally potentially driving tin prices higher. The rare earth industry continues to see supply-side reforms, and significant restocking demand from overseas is expected to drive both valuation and earnings growth for the sector.
Supercapacitor Sector Advances
The supercapacitor sector was a standout performer, leading the market higher.
Megmeet hit the daily limit up for a second consecutive session. Fenghua Advanced Technology, China XD Electric, Jianghai Capacitor, and CRRC Times Electric also surged to their daily limits. Hongda Electronics briefly jumped over 19%, while Zhongtian Technology rose more than 6%. Shenzhen Kaifa, CAPCHEM, Shengquan Group, and Faratronic also posted notable gains.
This rally followed news of a significant breakthrough in capacitor technology by Hubei Jiangcheng Laboratory. The lab successfully developed a three-dimensional multi-layer on-chip capacitor with a density exceeding 1000 nanofarads per square millimeter. This capacitor can be directly applied in high-end chips like AI/GPU processors and high-performance CPUs, supporting the development of high-computing-power, low-power-consumption chips. The related technology is currently undergoing process tape-out and small-batch trial production, with plans for large-scale application in the advanced packaging field.
Lithium Battery Sector Opens Higher Across the Board
EVE Energy Co., Ltd. (SHE: 300014) surged over 13% on Monday as the lithium battery sector opened strongly. Nuode Investment and Great Power Technology both reached their daily limit up.
EVE Energy released its first-half 2026 earnings forecast on Sunday evening. The announcement indicated the company expects net profit attributable to shareholders of between 3.13 billion yuan and 3.371 billion yuan for the first half of 2026, representing a year-on-year increase of 95% to 110%. This forecast significantly exceeded market expectations.
BOC International (China) noted that for new energy vehicles, with the peak demand season approaching, global sales in 2026 are expected to maintain robust growth, driving increased demand for batteries and materials.
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