Major stock indices in the A-share market showed mixed performance on Monday morning. Against the general market trend, the baijiu (white liquor), agriculture, and memory chip sectors demonstrated strength, while precious metals led the declines.
As of the midday close, the Shanghai Composite Index stood at 4066.4 points, down 0.71%. The Shenzhen Component Index fell 0.7%, while the ChiNext Index gained 0.18%. The STAR Market Composite Index declined by 0.98%.
Combined turnover for the Shanghai and Shenzhen markets reached 1.51 trillion yuan during the morning session, an increase of 20 billion yuan from the previous trading day. Across the market, only 1,898 stocks advanced, with 38 hitting the daily upper limit, while 3,403 stocks declined.
In a notable development, the baijiu sector rallied against the broader market downturn. Industry giant Kweichow Moutai saw its shares rise 2.75% to 1,452.46 yuan per share, with its market capitalization reaching approximately 1.82 trillion yuan. Recent market reports indicate that Kweichow Moutai has implemented consignment sales policies for several core products, including aged Moutai, premium editions, zodiac-themed bottles, and smaller-sized versions of its flagship 53-degree Flying Fairy spirit. Market analysts view this move as a key step in the company's market-oriented transformation.
Other major liquor producers also posted gains. Wuliangye, Yanghe Brewery, and Jinshiyuan each rose over 1%. Huangtai Wine surged more than 6%, while Jinhuijiu and Jiugui Liquor advanced over 3%. Shedoo Wines and Jinzizhongjiu both increased more than 2%.
Supporting the positive sentiment, data released by the National Bureau of Statistics showed a steady recovery in consumer spending for the January-February period. Total retail sales of consumer goods grew 2.8% year-on-year, with sales excluding automobiles increasing by 3.7%. Analyst teams suggest the baijiu industry has reached the bottom of its current cycle, noting improving channel sentiment, recovering demand, rising wholesale prices, and inventory reduction as positive catalysts, alongside supportive macroeconomic policies.
The agriculture, forestry, animal husbandry, and fishery sector also experienced an upward trend. Companies such as China National Seed Group hit the daily limit-up, Kangnong Seed rose nearly 10%, and China Aquatic Products gained over 8%. This movement comes as live hog prices continue to test lows and government policies tighten capacity controls. The National Development and Reform Commission, in conjunction with the Ministry of Agriculture, recently held a special meeting, explicitly setting a target to reduce the number of breeding sows to around 36.5 million.
Concurrently, the memory chip segment showed active trading. Companies like Netac Technology rose by the 20% daily limit, while Tinci Materials achieved a 10% gain. Biwin Storage advanced nearly 9%, and GigaDevice increased over 4%. Longsys, Demingli, Ingenic Semiconductor, and Hensym also posted gains. Analysis from Donghai Securities points to continuously rising memory prices, with the trend spreading from memory and consumer electronics to other semiconductor segments like power and analog chips. Given the current tense global geopolitical environment and potential ongoing US policy pressure in technology-intensive fields, costs for some import-dependent industries may remain elevated in the short term, potentially accelerating the long-term localization of China's semiconductor industry.
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