On August 13, the three major A-share indices experienced a pullback after an initial rally, closing the session in negative territory. By the end of trading, the Shanghai Composite Index settled at 3,926.96 points, down 0.50%; the Shenzhen Component Index fell to 14,289.44 points, a decline of 0.87%; the ChiNext Index closed at 3,586.04 points, dropping 0.45%; the STAR 50 Index finished at 1,717.75 points, losing 1.11%; and the Beijing Stock Exchange 50 Index ended at 1,097.80 points, sliding 1.62%. The combined turnover of the Shanghai and Shenzhen markets reached approximately 2.55 trillion yuan, representing an increase of about 398.5 billion yuan from the previous trading day.
A total of 1,143 stocks advanced, while 4,317 declined. There were 62 stocks hitting the daily limit up and 4 hitting the limit down, resulting in a profit-taking ratio of about 20%. Leading sectors included medical services, CRO, innovative drugs, traditional Chinese medicine, power, and state-owned large banks. The decliners were dominated by precious metals, industrial metals, small metals, glass and fiberglass, education, and real estate sectors.
Key Drivers
The market opened higher and initially rallied, but the three major indices turned negative in the final hour of trading. The Shanghai Composite Index showed the smallest decline, while the Beijing Stock Exchange 50 Index fell the most. Weighted sectors such as state-owned large banks and baijiu were relatively resilient, but only about 20% of all stocks gained, with over 4,300 stocks declining. This reflects a divergence where heavyweight stocks held up better, while small-cap and thematic stocks experienced a broad sell-off.
Healthcare and Pharmaceutical Sectors
The pharmaceutical and healthcare direction led the market, with medical services, CRO, innovative drugs, and traditional Chinese medicine sectors posting strong gains. On the news front, the BD (business development) deal-making heat in the innovative drug sector remains active, with three major transactions completed on August 10 alone. Additionally, WuXi AppTec announced that the U.S. District Court for the District of Columbia approved its motion for a preliminary injunction on August 7, temporarily shielding it from the immediate negative impact of being placed on the 1260H list during its lawsuit against the U.S. Department of Defense.
Non-Ferrous Metals Sector
The non-ferrous metals sector broadly declined, with precious metals, industrial metals, and small metals falling sharply. This area has seen notable gains in the recent period, and the current drop reflects a clear rotation among market sectors.
Turnover
The total trading volume in the two markets expanded to about 2.55 trillion yuan, an increase of roughly 398.5 billion yuan compared to the previous day.
Healthcare/CRO/Innovative Drugs
Medical services, CRO, and innovative drug sectors led the gains, establishing pharmaceuticals as the strongest theme of the day. Notable movers included Boji Medical & Pharmaceutical and Longshengrong Pharmaceutical hitting the 20% daily limit, while Yue Kang Pharmaceutical achieved its fifth limit-up in four days, and Yatai Group notched a third consecutive limit-up. Catalysts remain the sustained BD activity in innovative drugs, with three major deals completed on August 10, and the positive legal development for WuXi AppTec regarding the 1260H list.
Power Sector
The power sector strengthened in the afternoon session. Datang Power Generation, Jingneng Power, and Jianghe Group hit the daily limit. Meiyan Jixiang rose 9.47%, and Huadian Liaoning Energy gained 9.02%.
Computing Power/Super Node
The computing power leasing and super node concepts were active. Gongjin Electronics and Star-Net Ruijie hit the daily limit, Ruijie Networks surged 13.52%, and City Dijiang achieved a third consecutive limit-up. Overseas AI computing companies reported strong earnings, with Nebius posting a 454% year-over-year revenue increase in Q2 and its stock rising over 34% overnight, while CoreWeave saw revenue double and its stock gain over 19% in the same period.
Sectors Under Pressure
Precious metals, industrial metals, small metals, and glass and fiberglass sectors were among the top decliners. Xiaocheng Technology fell nearly 9%, Zhaojin Gold dropped about 8%, Hunan Silver lost over 7%, and Chuizhi Education hit the daily limit down. These sectors had previously risen considerably, and their decline on this day underscores a clear rotation pattern in the market.
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