Driven by the impressive performance of optical module leader Suzhou Tfc Optical Communication Co.,Ltd. and multiple positive factors including rising memory chip prices, the AI computing supply chain and the chip/semiconductor sector continued to strengthen, pushing the ChiNext and STAR 50 indices higher. On January 22, A-shares opened higher across the board, with the three major stock indices collectively rising in the morning session. The ChiNext Index gained over 1%, while the chip/semiconductor and AI computing supply chain sectors extended their gains. Aerospace/defense and oil/gas stocks were active, whereas gold shares experienced a significant correction. In Hong Kong, the Hang Seng Index and the Hang Seng Tech Index both opened higher but then trended lower, with the Tech Index nearly turning negative. Most technology and internet stocks declined, and gold stocks adjusted. The petrochemical and defense/military industry sectors showed activity. In the bond market, government bond futures moved lower. For commodities, most domestic commodity futures rose, with lithium carbonate gaining over 2%. Key market movements:
A-shares: As of writing, the Shanghai Composite Index was up 0.42%, the Shenzhen Component Index up 0.49%, and the ChiNext Index up 0.79%.
Hong Kong stocks: As of writing, the Hang Seng Index was up 0.29%, and the Hang Seng Tech Index was up 0.12%.
Bond market: Government bond futures fell across the board. As of writing, the 30-year main contract was down 0.05%, the 10-year main contract down 0.04%, the 5-year main contract down 0.03%, and the 2-year main contract down 0.02%.
Commodities: Domestic commodity futures were mostly higher. As of writing, lithium carbonate rose over 3%; asphalt, polysilicon, and fuel oil gained 2%; Shanghai tin, alumina, rubber, and stainless steel increased 1%; industrial silicon, coking coal, Shanghai nickel, the containerized freight index, soybean meal, rebar, coke, hot-rolled coil, Shanghai copper, Shanghai aluminum, Shanghai gold, manganese silicon, glass, pulp, and rapeseed moved higher. Iron ore and caustic soda fell, while Shanghai silver dropped 1%, and platinum and palladium declined over 2%.
At 09:58, the AI computing supply chain strengthened, with Loongson Technology rising 8% and Suzhou Tfc Optical Communication Co.,Ltd. gaining over 4%. On the news front, Suzhou Tfc Optical Communication Co.,Ltd., a leader in the optical device field, maintained its earnings growth. The company's performance forecast disclosed on January 21 showed that its estimated net profit attributable to shareholders for 2025 is 1.881 billion to 2.15 billion yuan, a year-on-year increase of 40% to 60%, continuing its high-growth trend. Cambridge Industries Holding Company, as a rising star in optical modules, achieved leapfrog performance growth through breakthroughs in high-speed products. The company expects its 2025 net profit attributable to shareholders to be 252 million to 278 million yuan, a year-on-year increase of 51.19% to 66.79%. At 09:47, the defense sector fluctuated and climbed, with Triangle Defense hitting the 20% daily limit-up. Beimo High-Tech, HangYu Technology, Aerospace Hi-Tech, Jianghang Equipment, and AECC Aviation Power rose over 6%. At 09:26, the Shanghai Composite Index opened 0.22% higher, and the ChiNext Index rose 0.52%. The semiconductor and AI computing supply chain sectors strengthened again, led by memory and automotive chips. Themes such as AI phones, stablecoins, duty-free shops, and cybersecurity were active. The precious metals sector experienced a significant pullback. At 09:21, the Hang Seng Index opened 0.62% higher, and the Hang Seng Tech Index rose 0.85%. Baidu and Kingdee Interntational Software Group gained over 3%, while Nio and Hua Hong Semiconductor rose over 2%. At 09:01, domestic commodity main contracts opened mixed. Asphalt and stainless steel rose over 2%, while synthetic rubber, fuel oil, palm oil, styrene (EB), low-sulfur fuel oil (LU), and SC crude oil gained over 1%. Platinum fell over 4%, palladium dropped over 3%, and Shanghai silver declined over 1%.
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