On June 2nd, A-shares experienced a volatile morning session trending higher. The three major indices initially declined collectively before the Shenzhen Component Index and the ChiNext Index recovered. The ChiNext Index briefly rose nearly 2% at the open, while the STAR 50 Index fell 1%. The Wind Micro-cap Index tumbled close to 3%. Sectors like coal and banking saw gains, while computing hardware rebounded, with optical communication and optical module segments showing strength. Conversely, photovoltaic industry chain and AI application concept stocks adjusted.
Hong Kong stocks opened higher and continued to gain, with both the Hang Seng Index and Hang Seng Tech Index strengthening. The Hang Seng Tech Index surged over 3% in early trading, as technology and internet stocks staged a broad rebound. Tencent rose nearly 5%, while Meituan jumped over 8%. Both Lenovo Group and Legend Holdings advanced. In the bond market, treasury futures fluctuated with mixed performance. For commodities, domestic futures were mixed, with Shanghai tin rising nearly 4% and lithium carbonate falling over 3%.
Key Market Movements
A-shares: At the time of writing, the Shanghai Composite Index was down 0.19%, the Shenzhen Component Index was up 0.16%, and the ChiNext Index was up 1.10%.
Hong Kong Stocks: At the time of writing, the Hang Seng Index was up 1.39% and the Hang Seng Tech Index was up 3.12%.
Bond Market: Treasury futures were mixed. At the time of writing, the 30-year front-month contract was down 0.10%, the 10-year contract was down 0.01%, the 5-year contract was up 0.01%, and the 2-year contract was up 0.01%.
Commodities: Domestic commodity futures were mixed. At the time of writing, Shanghai tin was up over 3%; asphalt and crude oil rose over 2%; fuel oil, coking coal, Shanghai copper, eggs, and stainless steel gained 1%. Shanghai aluminum, polysilicon, rubber, coke, iron ore, Shanghai nickel, the containerized freight index, and platinum also moved higher. Manganese silicon, rebar, hot-rolled coil, industrial silicon, rapeseed, soybean meal, pulp, and Shanghai silver declined. Caustic soda, alumina, Shanghai gold, and glass fell over 1%, while lithium carbonate dropped more than 3%.
Key Intraday Developments
10:20 The Hang Seng Tech Index expanded its intraday gain to 3%. Meituan rose over 8%, while TENCENT and BYD shares gained over 5%. Alibaba was up nearly 5%.
10:14 Optical module concept stocks rallied. Dongshan Precision rose over 6%, with Suzhou TFC Optical Communication, Zhongji Innolight, and TFC Optical Communication also advancing.
10:10 The Hang Seng Tech Index reached a gain of 2% intraday. Meituan was up over 6%, and Lenovo rose nearly 5%.
10:04 According to the Financial Times, TENCENT is moving closer to launching an AI assistant for WeChat. TENCENT's stock price saw a short-term surge, rising over 4% on the day.
09:59 Hong Kong-listed memory concept stocks declined. The CSOP Hang Seng TECH Index 2x Daily Leveraged Product fell over 9%. GigaDevice, the CSOP Samsung Electronics 2x Daily Leveraged Product, and Montage Technology all dropped over 3%.
09:54 The optical fiber concept bucked the trend and strengthened intraday. Hengtong Optic-Electric rose over 9%, continuing to hit a record high with its total market value exceeding 200 billion yuan. Yangtze Optical Fibre and Cable, Huiyuan Communication, Changyingtong, Yongding Co., and Zhongtian Technology followed with gains.
09:53 All three major A-share indices turned negative. The ChiNext Index had previously risen over 1.7%.
09:50 The MLCC (Multi-Layer Ceramic Capacitor) concept remained active. Sinocera Advanced Materials surged over 10%, reaching a record high. Lihexing, Torch Electron Technology, Hongyuan Electronics, Boqian New Materials, and Fenghua Advanced Technology followed suit.
On the news front, Goldman Sachs analyst Nelson Armbrust noted in a recent report that MLCCs have become the third-largest cost component in the current AI server bill of materials, following only GPUs and memory chips.
09:45 The lab-grown diamond concept rapidly gained. Huifeng Diamond rose over 15%, with Huanghe Whirlwind, SF Diamond, Power Diamond, and WALD following higher.
The catalyst was news that Huifeng Diamond held a ceremony marking the official commencement of production for high thermal conductivity diamond powder at its Huifeng Digital Intelligence Industrial Park. Upon reaching full-scale production, the project is expected to achieve an annual capacity of 20 tons of high thermal conductivity diamond composite materials and powder.
09:42 Liquid cooling server concept stocks rebounded in early trading. Shanghai Allied Industrial rose by the 20% daily limit, with Bojie Shares and Yihua Connector also hitting the limit up. Kelijing Technology, Chuanhuan Technology, Dingshengpai, and Siquan New Materials followed with gains.
The move was driven by news that Nvidia's Vera Rubin rack-level system is pushing single-cabinet power towards 130kW. Heat dissipation from time compression within chips and interconnects at the system level is becoming the most certain technological evolution path in the post-Moore's Law era.
09:34 The robotics concept strengthened at the open. Ningbo Zhongda Leader Intelligent Transmission hit the daily limit up, while Wuyang Holding and Leader Harmonious Drive Systems rose over 10%. Haozhi Automation, Sanxie Motor, Changsheng Bearing, and Moso Power Supply followed higher.
This followed announcements at GTC Taipei, where Nvidia CEO Jensen Huang revealed during his keynote that the NVIDIA Isaac GR00T reference humanoid robot, equipped with Sharpa Wave, will be officially unveiled to developers. It is understood that this reference robot was jointly launched by Sharpa, Nvidia, and Unitree.
09:31 The ChiNext Index surged over 1%. Sectors leading the gains included oil and gas, AI PC, and non-ferrous metals. Nearly 2,500 stocks across the Shanghai, Shenzhen, and Beijing markets were in positive territory.
09:26 The Shanghai Composite Index opened 0.09% higher, while the ChiNext Index gained 0.92%. Unitree Robotics, AI application, cloud computing, and CPO (Co-Packaged Optics) concept stocks were active. Superhard materials and glass fiber themes weakened, while baijiu (white liquor) and power sectors were sluggish.
09:21 The Hang Seng Index opened slightly lower by 0.01%, while the Hang Seng Tech Index opened up 0.62%. Li Ning rose over 4%. BYD shares and Kingdee International gained over 3%. Lenovo Group and Contemporary Amperex Technology Co. Limited (CATL) rose nearly 3%.
Comments