On July 16, A-shares opened lower and continued to decline in early trading, with the three major indices extending their losses at the market open. The Shanghai Composite Index and the Shenzhen Component Index fell over 1%, while the ChiNext Index dropped more than 2%. A brief intraday rebound saw the STAR 50 Index briefly turn positive before the major indices retreated once more. The semiconductor and computing hardware supply chains continued to adjust, with stocks related to memory chips, advanced packaging, HBM, and semiconductor equipment broadly declining. Sectors like AI applications and consumer electronics saw a rebound.
Hong Kong stocks opened higher and extended gains, with both the Hang Seng Index and the Hang Seng Tech Index rising sharply at the open. The Hang Seng Index gained 2%, while the Hang Seng Tech Index surged over 3%. Technology and internet stocks rallied collectively, with Alibaba, Meituan, Tencent, Kuaishou, and JD.com all rebounding, following the overnight gains of U.S.-listed Chinese stocks. Chip and semiconductor stocks also continued to fall, with Zhaoyi Innovation dropping over 10%.
In the bond market, treasury futures declined across the board. In commodities, domestic commodity futures were broadly lower. Key market movements:
A-shares: As of writing, the Shanghai Composite Index was down 0.96%, the Shenzhen Component Index down 1.08%, and the ChiNext Index down 2.01%.
Hong Kong Stocks: As of writing, the Hang Seng Index was up 2.04%, and the Hang Seng Tech Index was up 3.54%.
Bond Market: Treasury futures fell across all maturities. As of writing, the 30-year front-month contract was down 0.13%, the 10-year contract down 0.04%, the 5-year contract down 0.04%, and the 2-year contract down 0.02%.
Commodities: Domestic commodity futures were mostly lower. As of writing, platinum was up 2%, while rapeseed, palladium, soybean meal, Shanghai nickel, industrial silicon, stainless steel, rubber, hot-rolled coil, rebar, and crude oil were among the gainers. The containerized freight index, iron ore, Shanghai aluminum, manganese silicon, alumina, Shanghai copper, coking coal, Shanghai gold, coke, and asphalt were among the decliners. Pulp, caustic soda, eggs, glass, and polysilicon all fell over 1%, while Shanghai tin, lithium carbonate, and Shanghai silver dropped over 2%.
Intraday Market Updates
11:15: The memory chip concept continued its adjustment. Leading stock Demingli, with a market cap exceeding 100 billion yuan, hit the limit-down for a second consecutive day. Tianshan Electronics fell over 10%, while Jiangfeng Electronics, Huating Technology, Langqi Technology, and Zhaoyi Innovation were among the top decliners.
On the news front, South Korean memory giants SK Hynix fell nearly 12% and Samsung Electronics dropped over 9%. Overnight, most U.S. chip stocks declined, with the Philadelphia Semiconductor Index falling 2.08%. Micron Technology dropped over 8%, Marvell Technology fell more than 7%, Intel declined over 4%, and Advanced Micro Devices was down more than 3%.
10:50: The lithium battery concept saw a volatile rebound. Huasheng Lithium Battery rose over 10%, following earlier gains. Furi Co., Ltd. hit the limit-up, with Fuxiang Co., Ltd., Binhai Energy, Lingpai Technology, Zhuhai Guanyu, and Haike Xinyuan also rising.
10:01: The STAR 50 Index rebounded to turn positive, having earlier fallen nearly 4.3%. AI phone, film and media, and consumer electronics sectors led the gains. Nearly 2,700 stocks across the Shanghai, Shenzhen, and Beijing exchanges were advancing.
09:58: The STAR 50 Index rebounded to turn positive, having earlier fallen over 4%.
09:50: The AI phone concept remained active, driving the broader edge-side AI concept higher. Zhidu Co., Ltd. surged to a limit-up for a second consecutive day. Earlier, Green Precision, Furi Electronics, Guoguang Electric, and Furong Technology had hit limit-up. Haosheng Electronics, Huiwei Intelligent, Diansheng Co., Ltd., and Hongxi Technology all rose over 10%.
On the news front, according to reports, ByteDance, in collaboration with ZTE's Nubia, will release multiple models of its first AI agent phone this year. One model is set to debut around the 2026 World Artificial Intelligence Conference, with an initial production run of under 100,000 units and total planned production of around 200,000 units.
09:48: PCB concept stocks opened lower but then rose. Yihao New Materials surged 20% to limit-up, while Jingwang Electronics and Xianfeng Holdings hit limit-up.
The CPO concept adjusted lower. Changxin Bocom fell over 12%, while Guangku Technology, Taichenguang, Tianfu Communication, Shijia Photonics, and Fenghuo Communication collectively declined.
09:37: The Hang Seng Tech Index rose over 2%. SenseTime and Alibaba gained over 5%.
09:35: The ChiNext Index and the STAR 50 Index both fell over 3%. The Shanghai Composite Index was down 1.2%, and the Shenzhen Component Index was down 2.32%. Semiconductor chips and computing hardware sectors led the declines, with nearly 3,600 stocks across the Shanghai, Shenzhen, and Beijing exchanges falling.
09:31: Both the Hang Seng Index and the Hang Seng Tech Index rose over 1%.
09:26: The Shanghai Composite Index opened 1.09% lower, and the ChiNext Index opened 2.48% lower. The semiconductor and computing hardware supply chains continued to adjust, with memory, PCB, advanced packaging, and CPO sectors leading the losses. Industrial gases, GPU, glass fiber, and lithography machine concept stocks were also among the top decliners. Over 4,200 stocks in the market declined.
09:21: The Hang Seng Index opened 0.58% higher, and the Hang Seng Tech Index opened 0.15% higher. Alibaba, XPeng, Sunny Optical Technology, and Bilibili were among the top gainers. Zhipu AI fell over 7%, while Lenovo Group, Huahong Grace, MINIMAX, and SMIC were among the top decliners.
Comments