A-shares opened higher across the board on June 12th. At the time of writing, the Shanghai Composite Index was up 0.95%, reclaiming the 4000-point level, while the Shenzhen Component Index rose 1.31% and the ChiNext Index gained 1.77%.
In early trading, the semiconductor equipment sector showed significant strength. Nacon Equipment surged over 15%, with Fu Chuang Precision, Zhongke Feice, Shengmei Shanghai, and Tuo Jing Technology also among the top gainers. The molybdenum-related concept within the non-ferrous metals sector was active, with Jinmu Shares and Shenglong Shares hitting their second consecutive daily limit-up, Antai Technology reaching the limit-up, and CMOC and Yongshan Lithium posting notable gains.
Looking ahead, a short-term stabilization and recovery for the broader market may require the convergence of three scenarios: a significant, high-volume rally in the indices; the absence of sustained negative feedback from the technology innovation direction; and a recovery in overseas stock markets. As none of these conditions have been met yet, it is advisable to maintain a cautious stance, focusing on observation and position control, while waiting for clearer signs of market strength before actively participating.
From a medium-term perspective, the high-growth trend in the AI industry continues. As overseas tech giants begin disclosing their interim reports from mid-July through the end of August, the pricing logic for the AI and technology sector is expected to realign with fundamentals and earnings-driven factors.
Key Sector Highlights
Semiconductor Equipment Sector Gains Strength
The semiconductor equipment sector opened strongly. Nacon Equipment surged over 15%, with Fu Chuang Precision, Zhongke Feice, Shengmei Shanghai, and Tuo Jing Technology leading the gains.
Commentary: Recent reports indicate that several primary equipment suppliers to SK Hynix have requested price increases of 3%-4%. SK Hynix has asked these suppliers to submit supporting materials for evaluation of the price adjustment applications.
Molybdenum Concept Active at Market Open
The molybdenum concept within the non-ferrous metals sector was active in early trading. Jinmu Shares and Shenglong Shares hit their second consecutive daily limit-up, Antai Technology reached the limit-up, and CMOC and Yongshan Lithium were among the top performers.
Commentary: Reports state that SK Hynix has completed production verification for its 375-layer NAND flash memory and is preparing to transfer its mass production line to the Cheongju M15 plant, with formal mass production planned before year-end. A key technological highlight of this iteration is the use of molybdenum to replace traditional tungsten in creating word lines. At the same scaling, molybdenum offers lower resistance, which can effectively accelerate data read/write speeds.
Institutional Perspectives
Caixin Securities: AI Industry's High-Growth Trend Persists, Pricing to Revert to Fundamentals
Recently, against a backdrop of expectations for tighter monetary policy from the U.S. Federal Reserve, recurring geopolitical events, the "World Cup effect," and a wave of major tech IPOs, global equity markets have generally faced pressure, with A-shares failing to chart an independent course. Overall, no significant events have emerged domestically or internationally to effectively boost market confidence. Capital remains predominantly in wait-and-see mode, and the A-share market continues its low-level consolidation.
A short-term market stabilization and recovery likely requires the convergence of three scenarios: a significant, high-volume rally in the indices; the absence of sustained negative feedback from the technology innovation direction; and a recovery in overseas stock markets. As these conditions are not yet present, a strategy of observation and position control is recommended, waiting for clearer signs of market strength before active participation.
From a medium-term perspective, the high-growth trend in the AI industry continues. As overseas tech giants begin disclosing their interim reports from mid-July through the end of August, the pricing logic for the AI and technology sector is expected to realign with fundamentals and earnings-driven factors.
Tianfu Securities: Medium-Term Liquidity Risks Persist; Market Clarity May Emerge in Late June
Yesterday's market activity was primarily driven by the price increase theme, maintaining some localized positive performance. However, overall trading sentiment is gradually weakening against a backdrop of continuously shrinking volume, reflected in the loosening of concentrated positions in high-flying stocks and profit-taking. Caution is warranted against the potential for a batch sell-off in previously high-gainers, which could impact market sentiment and lead to further index breakdowns.
Post-market, U.S. PPI data was released, hitting a new three-year high. Combined with evolving Middle East tensions—where the closure of the Strait of Hormuz could further push inflation expectations higher—medium-term liquidity risks remain. With the upcoming U.S. Federal Reserve meeting in June, coinciding with the World Cup and half-year-end effects, market clarity may not emerge until around late June. Expectations should be moderated until then.
Strategically, following a late-session rebound in U.S. stocks overnight, attention should be paid to its potential impact on A-shares. The primary focus should be on position control: reducing exposure to high-flying stocks that have broken key support levels, taking some profits, and noting that defensive sectors, especially related ETFs, have shown relative resilience and may warrant moderate attention for their allocation value. While structural opportunities exist, overall trading difficulty is high, suggesting a period of appropriate rest may be prudent.
Everbright Securities: Cautious Sentiment Persists; Short-Term Consolidation Likely to Continue
Given that expectations for tighter overseas liquidity have not reversed and geopolitical uncertainties remain, market caution is unlikely to dissipate. In the short term, the market is likely to continue its pattern of weak, low-volume consolidation. A sustained recovery may need to wait for an improvement in market sentiment coupled with a significant expansion in trading volume.
In terms of direction, as market risk aversion increases, defensive sectors with low valuations and solid earnings—such as oil & gas extraction, minor metals, and rare earth permanent magnets—have shown resilience. Additionally, substantial price increases for industrial gases and further tightening of semiconductor equipment import restrictions have kept the semiconductor chip industry chain performing against the trend. However, the core market contradiction remains the combined impact of shifting liquidity expectations and recurring external disturbances, leading to persistently low overall risk appetite and limited sustainability across various thematic plays.
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