AH Shares Decline Across the Board: ChiNext Drops 2%, Computing Hardware Stocks Widespread Fall

On April 24, A-shares opened lower and continued to decline, with the three major stock indices widening their losses early in the session. The ChiNext Index fell by 2%, led by a collective slump in computing hardware stocks, particularly in areas like optical modules and optical communications. Eoptolink Technology Inc.,Ltd. plummeted over 9%. Conversely, the lithium mining and chemical sectors saw a rebound.

Hong Kong stocks extended their decline, with the Hang Seng Index and the Hang Seng Tech Index continuing to trend lower after opening down. The Hang Seng Tech Index dropped more than 1%, and technology and internet stocks also continued to fall. In the bond market, government bond futures rallied across the board. In commodities, most domestic commodity futures declined, with polysilicon tumbling over 7%.

Core Market Movements: A-shares: As of writing, the Shanghai Composite Index was down 0.73%, the Shenzhen Component Index had fallen 1.37%, and the ChiNext Index had declined 1.95%. Hong Kong stocks: As of writing, the Hang Seng Index was down 0.81%, and the Hang Seng Tech Index had dropped 1.59%. Bond market: Government bond futures rose across the board. As of writing, the 30-year main contract was up 0.13%, the 10-year main contract gained 0.06%, the 5-year main contract increased 0.05%, and the 2-year main contract rose 0.04%. Commodities: Most domestic commodity futures were down. As of writing, asphalt was up 3%, while fuel oil, Shanghai nickel, and crude oil rose over 2%. A few commodities like stainless steel, propylene, lithium carbonate, rapeseed, methanol, and rebar edged higher. Decliners included iron ore, hot-rolled coil, Shanghai tin, Shanghai copper, the containerized freight index, Shanghai aluminum, Shanghai gold, ferromanganese silicon, soybean meal, pulp, eggs, industrial silicon, and ethylene glycol. Aluminum oxide, glass, coking coal, caustic soda, rubber, and coke fell over 1%. Shanghai silver and platinum dropped over 2%, sheet metal plunged over 4%, and polysilicon slumped over 7%.

10:09 The ChiNext Index extended its decline, falling over 2.00%. The Shanghai Composite Index was down 0.72%, and the Shenzhen Component Index had fallen 1.39%. Losses were led by sectors including computing hardware, AI applications, computing power leasing, and power grid equipment. Nearly 4,000 stocks declined across the Shanghai, Shenzhen, and Beijing exchanges.

09:57 The chemical sector experienced a volatile uptick during the session, led by fertilizers and pesticides. Tianhe Co., Ltd. surged to a direct limit-up, followed by gains in Lutianhua, Zhongtai Chemical, Baofeng Energy, Hualu-Hengsheng, and Luxi Chemical.

Reports indicated a global fertilizer supply shortage leading to a sharp price surge. For example, the FOB price for Middle East granular urea futures, a widely used nitrogen fertilizer, has risen from under $500 per ton before the recent conflict to around $850 per ton currently, an increase exceeding 75%.

09:47 Innovative drug concepts showed localized activity. Jinshi Yazhou approached a 20% limit-up, followed by Wolwobi, Hongbo Pharmaceutical, Medytox, Frontier Biotech, and Shanghai Yizhong.

This movement followed the release of Jinshi Yazhou's first-quarter 2026 report, showing quarterly revenue of 331 million yuan, a year-on-year increase of 13.72%, and net profit attributable to shareholders of 116 million yuan, surging 84.59% year-on-year.

09:38 Green power concepts remained active. Huadian Energy hit a limit-up, followed by Huadian Liaoneng, Dongfang New Energy, Jinko Solar, and CECEP Wind-Power.

This activity followed the release of the "Carbon Peak and Carbon Neutrality Comprehensive Evaluation and Assessment Measures" by the General Offices of the CPC Central Committee and the State Council on April 23. The measures explicitly state goals including "ensuring carbon emission intensity in 2030 is reduced by over 65% compared to 2005" and "achieving a non-fossil energy consumption share of 25% by 2030," while reasonably controlling coal power capacity and generation, and striving for annual new clean energy generation to gradually cover all new electricity consumption in society.

09:33 Computing chip concepts remained active. Zhongyi Co., Ltd. achieved two consecutive limit-ups, followed by Haiguang Information, Loongson Technology, and China Great Wall.

This was influenced by Intel's forecast for second-quarter revenue between $13.8 billion and $14.8 billion, surpassing market expectations of $13.07 billion. The company also expects adjusted earnings per share of $0.20, significantly higher than the market consensus of $0.09. Following this news, Intel's stock price surged 15% in after-hours trading, adding $49 billion to its market capitalization and extending its recent rebound.

09:26 Eoptolink Technology Inc.,Ltd. opened 9.1% lower following the release of its first-quarter financial report. Reports indicated that Eoptolink Technology Inc.,Ltd.'s Q1 revenue reached 8.338 billion yuan, a year-on-year increase of 105.76%. Net profit attributable to shareholders was 2.78 billion yuan, up 76.80% year-on-year, while adjusted net profit was 2.768 billion yuan, rising 76.44% year-on-year. The most significant variable impacting the profit margin was financial expenses: Q1 financial expenses were 522 million yuan, mainly due to increased exchange losses. Additionally, the company recorded asset impairment losses of 83 million yuan, a year-on-year expansion. The combination of these two factors weighed on the net profit margin performance. Goldman Sachs noted that increased exchange losses caused quarterly net profit to fall short of expectations but maintained a positive outlook for the company's sequential revenue growth in the coming quarters of this year. Factors supporting this view include continued improvement in optical module chip supply, product structure upgrades towards 1.6T and above solutions, an increasing revenue contribution from silicon photonics solutions, and the company's accelerated capacity expansion to support rapid shipment growth.

09:26 The Shanghai Composite Index opened 0.3% lower, while the ChiNext Index fell 1.01%. Declines were led by concept stocks in 6G, glass fiber, computing power leasing, rare earths, CPO, short drama games, memory, and energy metals. Industrial gases and semiconductor themes showed strength.

09:21 The Hang Seng Index opened 0.7% lower at 25,733.61 points; the Hang Seng Tech Index fell 0.8%. Midea Group and Kingdee InterSoft fell over 2%, while Alibaba, Nio, and Tencent declined over 1%.

09:01 At the commodity futures market open, LU fuel oil, liquefied petroleum gas (LPG), and asphalt main contracts rose over 3%. Fuel oil, crude oil, and BR rubber gained over 2%. Shanghai silver fell over 1%.