Chinese stock indices showed a mixed performance at the opening on July 14th. The Shanghai Composite Index opened 0.12% lower, while the Shenzhen Component Index opened 0.07% higher. The ChiNext Index opened 0.16% higher, and the STAR Composite Index opened 0.31% higher. Across the broader market, more than 2,600 individual stocks were trading in negative territory.
Sector Performance Overview
In terms of sector performance, concepts related to oil and gas, computer hardware, retail, soft drinks, and energy equipment were among the top gainers. Conversely, sectors such as precious metals, aerospace and defense, telecommunications, commercial spaceflight, pharmaceuticals, and power generation equipment were among the leading decliners.
Notable Individual Stock Movements
Regarding individual stocks, five companies hit their daily upper price limit during the pre-market auction. These included Shenzhou High-Speed Railway Co., Ltd. for its first limit-up, Lihe Technology Co., Ltd. for its first limit-up, Dunhuang Seed Co., Ltd. for its first limit-up, Zhangjiang High-Tech Co., Ltd. for its first limit-up, and Aiai Precision Industry Co., Ltd. for its first limit-up.
International Oil Prices Surge
International crude oil prices have recorded their largest single-day gain in six years. Due to escalating tensions between the US and Iran and the US announcement of plans to reinstate a maritime blockade on Iran, international crude oil futures prices rose significantly during early trading on the 13th, closing with gains exceeding 9%, marking the largest single-day increase since May 2020. As the new trading session began on the evening of the 13th, international oil prices continued to rise by over 1%.
At the close on the 13th, the price for August delivery of light sweet crude oil on the New York Mercantile Exchange increased by $6.73 to settle at $78.14 per barrel, a gain of 9.42%. The price for September delivery of Brent crude on the London ICE Futures Europe exchange rose by $7.29 to settle at $83.30 per barrel, a gain of 9.59%.
An analyst from ING stated that the escalation of conflict has already reduced traffic through the Strait of Hormuz to low levels, reigniting concerns about tight oil supplies in the third quarter. Rania Gule, a senior market analyst at the global financial brokerage XS Group, noted that the current trend in the energy market is not merely a short-term technical rebound but represents a market repricing of geopolitical risks.
New Policy Guidelines for Internet Infrastructure
On July 13th, the "Guiding Opinions on Promoting the High-Quality Development of Internet Basic Resources," jointly issued by the Ministry of Industry and Information Technology, the Cyberspace Administration of China, the National Development and Reform Commission, and the National Data Administration to relevant local departments, were made public. The document outlines 16 key tasks. Notably, satellite internet has been included for the first time in a national-level top-level plan as a fundamental internet resource. It is systematically incorporated into multiple levels for coordinated advancement, including basic theory, key technologies, infrastructure, and application systems, encompassing a total of four key tasks.
Progress in China's Pharmaceutical Innovation
According to revelations from the National Medical Products Administration, as of June 30th, China's innovative drugs have been involved in a total of 81 out-licensing deals, with a total transaction value of approximately $110 billion, reaching about 80% of the total out-licensing transaction value for the entire year of 2025. In the first half of this year, China's innovative drug out-licensing transactions covered 10 fields including oncology, metabolism, immunology, and neurology, with the primary licensees coming from 20 countries and regions including the United States and the United Kingdom.
Lan Gongtao, Deputy Director-General of the Drug Registration Department of the NMPA, stated that the number of new drugs under research in China accounts for about 30% of the global total, ranking second in the world. He noted that the innovation efficiency of China's pharmaceutical industry is among the highest globally. Separately, on July 13th, Yuan Peng, Deputy Director-General of the Medical Device Registration Department of the NMPA, reported that from January to June this year, the NMPA approved a total of 1,595 Class III medical devices for market launch. Among these, 42 were innovative medical devices, indicating an accelerated pace for the market entry of high-end innovative medical equipment.
Hong Kong Market Opening
The Hong Kong stock market opened lower. The Hang Seng Index opened down 0.13%, the Hang Seng Tech Index opened down 0.25%, and the Hang Seng China Enterprises Index opened down 0.01%. Oil stocks showed strength. GigaDevice Semiconductor Inc. opened over 3% higher, while Baidu Group Inc. opened over 3% lower and XPeng Inc. opened nearly 2% lower.
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