China's A-share energy stocks continued their strong performance amid reports that U.S. Defense Secretary Lloyd Austin confirmed no ground troops have been deployed inside Iran, while keeping all options open. On March 3, China's three major stock indices opened higher in morning trading, with the Shanghai Composite Index approaching 4,200 points before retreating. Currently, both the Shanghai and Shenzhen indices have turned negative. Energy stocks maintained their upward momentum, while shipping sectors also extended gains. Aerospace defense and precious metals sectors underwent adjustments. Photovoltaic inverter and CPO concept stocks showed active trading.
Hong Kong markets exhibited a high-open, low-close pattern, with both the Hang Seng Index and Hang Seng Tech Index rising initially before collectively declining. Most technology and internet stocks rebounded. In bond markets, government bond futures experienced volatile gains. Commodity markets saw mostly declines in domestic futures, with containerized freight index and fuel oil posting significant increases.
Key market movements: A-shares: As of writing, the Shanghai Composite Index fell 0.53%, the Shenzhen Component Index dropped 1.23%, and the ChiNext Index declined 0.35%.
Hong Kong stocks: The Hang Seng Index decreased 0.38%, while the Hang Seng Tech Index fell 0.72%.
Bond markets: Government bond futures fluctuated upward, with the 30-year main contract rising 0.05%, the 10-year main contract down 0.01%, the 5-year main contract unchanged, and the 2-year main contract up 0.01%.
Commodities: Domestic commodity futures mostly advanced, with containerized freight index and fuel oil hitting limit-up levels. Asphalt, Shanghai gold, Shanghai aluminum, soybean meal, aluminum oxide, manganese silicon, rapeseed, and rubber moved higher. Coke, pulp, coking coal, stainless steel, rebar, and caustic soda declined, while eggs and glass fell more than 1%. Palladium, Shanghai silver, platinum, and Shanghai tin were among the biggest decliners, with lithium carbonate plunging over 10%.
09:58 The defense sector experienced volatile adjustments during trading, with drone and defense informatization segments leading declines. Hangya Technology fell more than 10%, while Huaqin Technology, Aerospace Huanyu, Northern Long Dragon, Zhanpeng Technology, Jianghang Equipment, and Zhongwu Reconnaissance Aircraft were among the top decliners.
09:54 All three major indices turned negative, despite the ChiNext Index having risen over 1% earlier in the session. Non-ferrous metals, precious metals, defense, and rare earth sectors led the declines, with more than 3,200 stocks falling across Shanghai, Shenzhen, and Beijing exchanges.
09:48 Computing power leasing concepts showed strength during morning trading, with Yudian Holding achieving eight limit-up moves in nine sessions. Previously, Runjian Co. hit limit-up, while Zhiwei Intelligence, GCL Energy, Southern Grid Digital, and TOWIN Information followed with gains. Recent data showed China's model weekly call volume surged to 5.16 trillion tokens during February 16-22, representing 127% growth over three weeks and exceeding the U.S. figure of 2.7 trillion tokens. Chinese models occupied four of the top five positions in global call volume rankings.
09:33 The Shanghai Composite Index briefly surpassed its January high, reaching a fresh decade peak with year-to-date gains exceeding 5.5%.
09:27 Energy stocks continued their rally, with Shandong Molong, Zhunyou Shares, and Sinopec Oilfield Service all recording two consecutive limit-up moves. Tongyuan Petroleum approached limit-up while Keli Shares rose over 10%.
09:26 The Shanghai Composite Index opened 0.16% higher, while the ChiNext Index gained 0.68%. Energy stocks maintained their upward trend, with Tongyuan Petroleum and Zhongman Petroleum among multiple stocks hitting limit-up. Natural gas, shipping, and optical fiber sectors led gains, while gold and rare metal sectors underwent adjustments.
09:21 The Hang Seng Index opened 0.5% higher, with the Hang Seng Tech Index up 0.58%. SenseTime, NetEase, Alibaba, Huahong Semiconductor, and SMIC were among the top gainers. Energy stocks continued strengthening, with Shandong Molong rising nearly 15% and Sinopec Oilfield Service advancing almost 9%.
09:18 The yuan's midpoint rate against the U.S. dollar strengthened by 148 basis points to 6.9088 yuan, marking the highest level since May 4, 2023.
09:05 Domestic fuel oil futures main contract briefly hit limit-up with a 12% gain.
09:02 Domestic containerized Europe route and crude oil futures main contracts reached limit-up levels.
Comments