Global bond market turmoil continued overnight, dragging down US and European equities, with the US chip index plunging 5% and SK Hynix and Seagate both falling over 9%. Asian markets extended losses today, with South Korea's market opening 5% lower as SK Hynix and Samsung Electronics dropped sharply.
On August 19, A-shares opened lower and continued to slide, with all three major indices falling at the open. The Shanghai Composite Index dropped over 1%, while the ChiNext Index fell more than 3%. Unitree Robotics surged nearly 630% at its debut, pushing its market cap above 440 billion yuan, and is currently up nearly 500%. However, the robotics sector suffered heavy losses, space computing concept stocks also declined sharply, and computing hardware and semiconductor sectors entered a correction. Banking, oil and gas, and shipping sectors remained active.
Hong Kong stocks also opened lower and extended declines, with the Hang Seng Index and Hang Seng Tech Index both falling. The Hang Seng Tech Index slipped over 1%, with most tech stocks declining. Baidu (BIDU) plunged 13%, while chip stocks also fell, with memory chip names leading the losses. In the bond market, government bond futures mostly moved higher. In commodities, most domestic commodity futures declined, with metals leading the losses.
Key market movements:
A-shares: As of press time, the Shanghai Composite Index fell 1.24%, the Shenzhen Component Index dropped 2.46%, and the ChiNext Index declined 3.03%.
Hong Kong stocks: As of press time, the Hang Seng Index fell 0.32%, and the Hang Seng Tech Index dropped 1.39%.
Bond market: Government bond futures were mixed. As of press time, the 30-year main contract rose 0.08%, the 10-year main contract gained 0.02%, the 5-year main contract edged up 0.01%, and the 2-year main contract added 0.01%.
Commodities: Most domestic commodity futures declined. As of press time, fuel oil surged nearly 6% against the trend, while coking coal, coke, and crude oil rose over 2%. Asphalt, iron ore, eggs, soybean meal, rebar, rubber, caustic soda, manganese silicon, hot-rolled coils, industrial silicon, and glass moved higher. Pulp, stainless steel, rapeseed, alumina, nickel, and container shipping index fell, with Shanghai gold, copper, aluminum, and tin down over 1%, and platinum, palladium, polysilicon, and Shanghai silver down over 2%.
10:19 — The Shanghai Composite Index fell nearly 2%, and the ChiNext Index dropped over 4%, with nearly 5,000 stocks declining across the market.
10:14 — Most heavyweight Hong Kong tech stocks fell, with Baidu (BIDU) plunging over 13%. Xiaomi rose over 4% against the trend, while Meituan, JD.com, and Tencent posted modest gains.
On the news front, Baidu (BIDU) released its Q2 2026 earnings report, with quarterly total revenue of 31.3 billion yuan, slightly below the market expectation of 31.6 billion yuan. Notably, AI revenue accounted for 50% of Baidu's core business, exceeding half for the second consecutive quarter, indicating AI is becoming a key component of the company's revenue structure.
However, AI business expansion has not yet fully translated into profit growth. This quarter, Baidu's adjusted earnings per ADS were 7.22 yuan, significantly below the market expectation of 9.75 yuan. Although adjusted operating profit and EBITDA both slightly exceeded market expectations, the notable gap in per-share earnings suggests that AI infrastructure investment continues to pressure profitability.
10:08 — Memory chip stocks fell collectively, with Demingli, GigaDevice, and Dapu Micro leading the declines.
10:07 — The robotics sector moved lower, with Leader Harmonious Drive Systems, Changsheng Bearing, and Zhongda Leader all falling over 10%.
09:57 — Banking stocks were active, with China CITIC Bank, Bank of Chongqing, and Bank of Chengdu all moving higher.
09:39 — The real estate sector strengthened against the trend, with Woaiwojia and Nandu Property both hitting the daily limit up. Tefa Service, Zhongtian Service, Shilian Bank, and Binjiang Group followed with gains.
On the news front, the State Council amended the "Housing Provident Fund Management Regulations," expanding the scope of withdrawals to include renovation and property management fees. The threshold restriction requiring rent to exceed a certain proportion of household wage income for provident fund withdrawals has been removed, and new provisions allow withdrawals for home renovation and self-occupied housing property fees.
09:34 — The agriculture sector continued to buck the trend in early trading, with Jinjian Rice, Nongfa Seed, and Jingliang Holdings all hitting three consecutive daily limits. Wandong Nongmu, Yasheng Group, and Denghai Seed followed with gains.
09:31 — The ChiNext Index fell 3.00%. Computing hardware, semiconductor chips, and precious metals led the declines, with nearly 4,300 stocks falling across the Shanghai, Shenzhen, and Beijing markets.
09:26 — The Shanghai Composite Index opened 0.96% lower, and the ChiNext Index fell 2.7%. The semiconductor and computing hardware supply chain pulled back, with memory, PCB, and CPO names leading losses. Industrial metals, gold, photovoltaic, and UHV themes weakened. Commercial aerospace concept stocks strengthened against the trend.
Unitree Robotics, the "first humanoid robot stock," debuted on the STAR Market, opening up nearly 630% at 1,100 yuan per share, with a single-lot gain exceeding 470,000 yuan and a total market cap surpassing 440 billion yuan.
09:21 — The Hang Seng Index opened 0.49% lower, and the Hang Seng Tech Index fell 1.27%. Baidu (BIDU) dropped over 12%, China Unicom fell nearly 8%, MINIMAX declined nearly 6%, Zhipu slid over 4%, and SMIC and XPeng both fell over 3%.
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