On June 2nd, the three major A-share indices experienced significant volatility during the morning session. By the midday close, the Shanghai Composite Index had edged down 0.04%, while the Shenzhen Component Index rose 0.96%, and the ChiNext Index surged 2.15%.
The combined turnover for the Shanghai and Shenzhen markets in the morning session reached 1.81 trillion yuan, a decrease of 148.5 billion yuan compared to the previous trading day.
In terms of sector performance, computing hardware concepts such as MLCCs, optical fiber cables, optical modules, PCBs, and copper cable high-speed connections saw a volatile rebound.
Yuanjie Semiconductor Technology Co., Ltd (SHA: 688498)
and Guangku Technology Co., Ltd (SHE: 300620)
both soared over 10%, while Hengtong Optic-Electric Co., Ltd (SHA: 600487)
and Yihua Connector Holding Co., Ltd (SHE: 002897)
hit the daily limit-up.
The coal sector rallied against the broader trend, with Dayou Energy Co., Ltd (SHA: 600403)
and Zhengzhou Coal Industry & Electric Power Co., Ltd (SHA: 600121)
both reaching limit-up for two consecutive sessions.
The AI PC concept opened significantly higher, with Chunqiu Electronics Co., Ltd (SHA: 603890)
and Yingli Industrial Co., Ltd (SHE: 300956)
hitting limit-up or gaining over 10%.
On the downside, AI application sectors like cultural media and short drama games collectively weakened.
Concepts related to power and power grid equipment continued their decline.
The photovoltaic equipment sector showed relative weakness, with Shuangliang Energy-Saving System Co., Ltd (SHA: 600481)
and Meyer Burger Technology AG (SHE: 300751)
falling nearly 7%.
The lithium battery industry chain trended lower, with Yongshan Lithium Industry Co., Ltd (SHE: 300890)
hitting the daily limit-down.
Additionally, sectors including innovative drugs, airport and shipping, and fiberglass all experienced declines.
Looking ahead, while equity markets in the US, Japan, and South Korea have continued to hit new highs this week, the A-share market has undergone some adjustments.
As long as overseas technology markets continue to perform well, it indicates that the global technology sector's prosperity and capital recognition have not receded, suggesting that the current adjustment in A-share tech stocks is a healthy one.
Key Sectors in Focus
Optical Fiber Concept Shows Strength
The optical fiber concept demonstrated strength against the market trend during the session.
Hengtong Optic-Electric Co., Ltd (SHA: 600487)
surged over 9%, once again reaching a historical high with its total market capitalization exceeding 200 billion yuan.
Yangtze Optical Fibre and Cable Joint Stock Limited Company (SHA: 601869)
, Huiyuan Communication Technology Co., Ltd (SHE: 000586)
, Changyingtong Technology Co., Ltd (SHA: 688143)
, Yongding Co., Ltd (SHA: 600105)
, and Zhongtian Technology Co., Ltd (SHA: 600522)
followed with gains.
Analysis points to a research report noting that telecom group-level centralized procurement has commenced.
The increase in bid price limits for some provincial procurements suggests that demand elasticity remains strong in the short term compared to volume-price negotiations.
Following a price surge and supply shortage driven by unmanned aerial vehicles and AI, current drivers like Scale-up and DCI are expected to maintain robust demand for optical fiber, indicating the industry remains in a significant upward cycle.
CPO Concept Experiences Volatile Rebound
The Co-Packaged Optics (CPO) concept saw a volatile rebound during the session.
Yuanjie Semiconductor Technology Co., Ltd (SHA: 688498)
and Guangku Technology Co., Ltd (SHE: 300620)
both surged over 10%.
Liantronics Co., Ltd (SHE: 301205)
, Lianxun Precision Instrument Co., Ltd (SHA: 688478)
, Dongshan Precision Manufacturing Co., Ltd (SHE: 002384)
, and New Sea Union Technology Co., Ltd (SHE: 300502)
all gained over 6%.
Institutions have noted that the long-term evolutionary logic of the computing power sector remains unchanged.
As we enter June, demand expectations for optical modules in 2027 are accelerating and becoming clearer.
Furthermore, the bottleneck of shortages in upstream core components that previously constrained deliveries is gradually reaching an inflection point of improvement, potentially accelerating the release of production capacity and earnings elasticity for leading manufacturers.
Coal Sector Remains Active
The coal sector continued its strong performance.
Dayou Energy Co., Ltd (SHA: 600403)
and Zhengzhou Coal Industry & Electric Power Co., Ltd (SHA: 600121)
both secured two consecutive limit-up sessions.
Yunnan Coal & Energy Co., Ltd (SHA: 600792)
and Lu'an Chemical Industry Group Co., Ltd (SHA: 601699)
followed with increases.
Statistics show that from May 22nd to 28th, power plant electricity generation and coal consumption increased slightly compared to the previous period.
Power plants are steadily preparing for inventory replenishment ahead of the peak summer demand period, intensifying efforts on long-term contract transportation, with coal intake reaching its highest level in recent years for the same period.
AI PC Concept Opens Significantly Higher
The AI PC concept opened substantially higher in the morning session.
Chunqiu Electronics Co., Ltd (SHA: 603890)
achieved three consecutive limit-up sessions, while Yingli Industrial Co., Ltd (SHE: 300956)
opened 13% higher.
Thunderobot Technology Co., Ltd (SHE: 872190)
, Shengli Precision Co., Ltd (SHE: 002426)
, Longqi Technology Co., Ltd (SHA: 603341)
, and RuanTong Power Co., Ltd (SHE: 301236)
were among the top gainers.
NVIDIA's CEO, Jensen Huang, stated that NVIDIA will launch a new generation of PC chips for each generation of AI processors, with computers featuring NVIDIA's RTX SPARK chips set to hit the market in the autumn.
Institutional Perspectives
Soochow Securities Viewpoint
As long as overseas technology markets continue to perform well, the adjustment in A-share tech is considered healthy.
While US, Japanese, and South Korean equity markets have hit new highs this week, A-shares have seen some adjustments.
The sustained good performance of overseas tech markets indicates that global tech sector prosperity and capital recognition have not diminished, framing the A-share tech adjustment as benign.
Structurally, some capital appears to be attempting a rotation from high to low valuations, but based on the sustainability of sector prosperity and fund flows, it is premature to conclude that some lower-valuation sectors are starting a major uptrend.
The view is that the subsequent market may exhibit a scenario of multi-point rotation, potentially similar to the performance in October 2025, where the tech main theme digests selling pressure through wide fluctuations, buying time for the next upward move, possibly waiting for catalysts like half-year earnings reports.
Caixin Securities Viewpoint
The trend of short-term market style rebalancing may persist, with indices likely to remain range-bound.
Overall, the positive trend for technology-related industries has not changed.
However, the recent consecutive adjustments in the hard tech sectors that previously led the market, as reflected in the downward trend of the STAR 50 Index, indicate increased divergence among funds regarding large-cap tech stocks at current levels, requiring time and space to digest holdings.
Simultaneously, the short-term trend of market style rebalancing may continue, potentially manifesting as a rotation within the tech sector from high to low valuations and a shift from large-cap to small-cap stocks.
Therefore, in the short term, against a backdrop of stable market conditions and reasonable trading activity, the probability of a trend-based decline at the index level is low, with indices likely to remain range-bound.
Central China Securities Viewpoint
The A-share market has entered a phase driven by earnings growth, with the medium-to-long-term upward trend remaining intact.
As oil prices steadily retreat, the impact of geopolitical risks on A-shares has significantly cooled.
If uncertainty surrounding Federal Reserve policy subsides, market focus will return to the domestic earnings growth narrative.
The A-share market has entered a phase driven by earnings growth, and the medium-to-long-term upward trend remains unchanged.
Signals indicating the end of the major AI market wave have not yet appeared.
The current adjustment is more of a periodic digestion within the uptrend rather than a trend reversal.
The Shanghai Composite Index is expected to maintain a pattern of consolidation and fluctuation, with close attention paid to macroeconomic data, changes in overseas liquidity, and policy developments.
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