Chinese and Hong Kong markets saw declines in computing hardware and chip/semiconductor stocks, following earlier pressure across the Asia-Pacific region where South Korea's Seoul Composite Index fell over 6%. SK hynix saw its decline on the Korea Exchange widen to 10%. During today's session, the Korea Exchange activated its SIDECAR mechanism, temporarily halting programmatic selling on the KOSPI.
On July 13th, A-shares faced pressure in early trading, with the three major indices falling collectively. The Shenzhen Component Index and the ChiNext Index both dropped around 1%. Concept stocks in commercial aerospace, satellite navigation, glass fiber, and super-hard materials saw collective adjustments, while the defense and non-ferrous metals sectors moved lower. AI server, GPU, and switch concept stocks were briefly active at the market open. Banking and oil & gas stocks strengthened.
Hong Kong stocks opened lower but then rose, with both the Hang Seng Index and the Hang Seng Tech Index rising shortly after the opening. The Hang Seng Tech Index at one point surged over 1% before retreating to just below that level. Most technology and internet stocks rebounded, with Alibaba once again rising over 3%. AI large model stocks showed divergent performance: Knowledge Atlas (02513) strengthened, while MINIMAX plunged over 14%.
In the bond market, treasury futures showed mixed performance. In commodities, domestic commodity futures were mixed. Key market movements as of press time:
A-shares: The Shanghai Composite Index fell 1.08%, the Shenzhen Component Index dropped 1.77%, and the ChiNext Index declined 1.29%.
Hong Kong stocks: The Hang Seng Index rose 0.84%, and the Hang Seng Tech Index gained 1.20%.
Bonds: Treasury futures were mixed. The 30-year main contract fell 0.03%, the 10-year main contract was flat, the 5-year main contract rose 0.02%, and the 2-year main contract was flat.
Commodities: Domestic commodity futures were mixed. Fuel oil and crude oil rose sharply by over 3%, asphalt gained 2%, while rubber, soybean meal, the containerized freight index, industrial silicon, stainless steel, caustic soda, glass, polysilicon, rapeseed, and Shanghai nickel, among others, fluctuated higher. Manganese silicon, palladium, Shanghai aluminum, hot-rolled coil, lithium carbonate, rebar, iron ore, alumina, eggs, and Shanghai copper, among others, fell. Shanghai gold, Shanghai tin, coking coal, coke, and Shanghai silver fell over 1%.
10:13
Brokerage stocks saw a sudden surge, with Zhongtai Securities Co.,Ltd. (600918) hitting the daily limit-up.
10:06
The pharmaceutical sector continued to rise, led by traditional Chinese medicine (TCM) stocks. Longshen Rongfa, Jiuzhitang, Harbin Pharmaceutical, and Lifang Pharmaceutical hit the daily limit-up. Shengu, Wanbang Pharma, Shanghai Kaibao, and Xinganjian rose over 10%.
On the news front, the State Council recently approved in principle the "15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine," outlining a top-level roadmap for the coordinated development of TCM undertakings, industry, and culture over the next five years.
09:59
All three major A-share indices fell more than 1%, with over 4,500 stocks declining in the market. Commercial aerospace, computing hardware, and industrial metals led the losses.
09:52
Robot concept stocks fluctuated lower, with Lingyi Intelligent Manufacturing hitting the daily limit-down. United Precision, Han's Laser, Rifeng Precision, Henghe Precision, and Deen Precision fell over 6%.
09:47
Film and cinema concepts saw collective adjustments, with Ruyi Film hitting the daily limit-down. Xingfu Blue Sea fell nearly 10%. China Film, Bona Film, Beijing Culture, Shanghai Film, and Hengdian Film were among the top decliners.
09:41
The Shenzhen Component Index fell over 1%, the Shanghai Composite Index dropped 0.68%, and the ChiNext Index declined 0.45%. Military equipment, precious metals, film/media, complete vehicles, and wind power/photovoltaics were among the sectors leading the declines. Nearly 4,300 stocks fell across the Shanghai, Shenzhen, and Beijing markets.
09:36
Switch concept stocks were active again in early trading, with Xingwang Ruijie reaching its sixth limit-up in ten days. Feilingkesi, Shengke Communication, Ruijie Networks, ZTE, and Unisplendour followed with gains.
On the news front, Shanxi Securities believes AI data center switches are entering a period of "demand expansion + speed upgrade + import substitution" triple resonance. With continued capacity expansion by major internet companies, operators, government/enterprise clouds, and AI computing centers, the adoption rate of domestic switches, switching chips, and networking solutions is expected to increase.
09:33
The Hang Seng Tech Index expanded its intraday gain to 1.3%, while the Hang Seng Index's gain widened to 0.9%.
09:26
The Shanghai Composite Index opened 0.75% lower, and the ChiNext Index opened down 0.86%. The semiconductor and computing hardware supply chain adjusted, with memory, PCB, and advanced packaging leading the declines. Lithium battery, fluorochemical, robot, photovoltaic, artificial intelligence, and industrial metal concept stocks weakened. Oil & gas, coal, and pharmaceuticals bucked the trend to strengthen.
09:21
The Hang Seng Index opened 0.07% lower, and the Hang Seng Tech Index opened down 0.04%. Knowledge Atlas (02513) rose nearly 5%, with Tencent Music and BYD among the top gainers. AIA Group, Laopu Gold, and NetEase were among the top decliners.
Following a target price increase last week, JPMorgan this week again raised its target price for Knowledge Atlas by 20%. The bank noted that demand is approaching its service capacity limit, so new inference resources are expected to be converted into annual recurring revenue within 12 months, with the latest funding supporting this already visible conversion.
The firm believes the financing for Knowledge Atlas accelerates a clear "demand-to-revenue" conversion path, hence raising its target price from HKD 2,000 to HKD 2,400 while maintaining an "Overweight" rating. Simultaneously, it lowered the target price for MINIMAX from HKD 300 to HKD 240, maintaining a "Neutral" rating due to an unconfirmed commercial conversion path and diluted equity.
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