China's three major A-share indexes opened lower and traded weakly through the morning session, with the CSI 1000 index leading the decline. A notable divergence emerged between large-cap and small-cap stocks, as the latter showed relative strength. By midday closing, the Shanghai Composite Index fell 0.59%, the Shenzhen Component Index dropped 0.45%, and the ChiNext Index slipped 0.44%. The CSI 1000 Index tumbled 3.73%, while the Beijing Stock Exchange 50 Index lost 0.66%. Across the market, 3,717 stocks advanced against 1,690 decliners, meaning nearly 70% of traded shares posted gains. The combined half-day turnover on the Shanghai and Shenzhen exchanges was approximately 1.37 trillion yuan, shrinking by about 420.3 billion yuan from the previous session. The session displayed clear structural divergence.
On the upside, the nuclear power and controlled nuclear fusion concept surged as a whole. Jiusheng Electric Co., Ltd. hit the 20% daily limit, while stocks including China Nuclear Engineering & Construction Corporation, Hefei Metalforming Intelligent Manufacturing Co., Ltd., and Rongfa Nuclear Equipment Co., Ltd. also locked in their 10% daily limits. The AI application concept remained active, with Chuanzhi Education Co., Ltd. hitting its daily limit for the sixth consecutive session. Tianyu Digital Technology (Dalian) Group Co., Ltd. and Hengyin Technology Co., Ltd. both extended their winning streaks to two sessions, and Jihong Co., Ltd. also hit the daily limit. The humanoid robot concept showed strength, with Zhongda Leader Intelligent Transmission Co., Ltd. rising for a second consecutive day and Fulai New Materials Co., Ltd. hitting the limit. The power and grid equipment sector edged higher, with Xin Neng Co., Ltd. gaining for two straight sessions, and Shenzhen Nanshan Power Co., Ltd. and Huadian Liaoning Energy Co., Ltd. both reaching their daily limits.
On the downside, semiconductor and memory chip concepts led the losses, with PuRan Microelectronics Co., Ltd., GigaDevice Semiconductor (Beijing) Inc., and Shenzhen Demingli Technology Co., Ltd. all declining. The fiberglass and building materials sector weakened, and the electronic chemicals concept also adjusted. Overall, capital flowed out of semiconductor and electronics technology sectors and into policy-driven areas such as power equipment and nuclear power, resulting in pronounced structural market divergence.
Driving Forces Behind the Hot Sectors
The nuclear power and controlled nuclear fusion concept saw a wave of limit-up moves. Jiusheng Electric Co., Ltd. hit the 20% daily limit, while Libart Group Co., Ltd., Hefei Metalforming Intelligent Manufacturing Co., Ltd., Rongfa Nuclear Equipment Co., Ltd., China Nuclear Engineering & Construction Corporation, Baoli Electric Co., Ltd., and Jiangsu Shentong Valve Co., Ltd. all reached their 10% daily limits. Changfu Co., Ltd. surged over 18%, Harbin Welding & Cutting Technology Co., Ltd. gained over 17%, and China Nuclear Engineering Corporation Limited and Western Superconducting Technologies Co., Ltd. also followed the upward trend. This was triggered by a State Council executive meeting on July 31, which approved four new nuclear power projects, including the first phase of the Liaoning Zhuanghe project, totaling eight generating units. Nuclear power projects are a key driver of effective investment, and the new projects are estimated to require over 170 billion yuan in total investment. The same meeting also outlined plans to advance the construction of six major infrastructure networks, positioning new power grid construction as a core focus. According to the National Energy Administration and the China Electricity Council, the total fixed asset investment in the national power grid during the 15th Five-Year Plan period is expected to grow by over 80% compared to the 14th Five-Year Plan period.
The AI application concept continued its strong run. Chuanzhi Education Co., Ltd. locked in a sixth consecutive daily limit, Tianyu Digital Technology (Dalian) Group Co., Ltd. and Hengyin Technology Co., Ltd. both achieved a second consecutive limit, Jihong Co., Ltd. hit its daily limit, and Fosun Software Co., Ltd., Yidian Tianxia Co., Ltd., and BlueFocus Communication Group Co., Ltd. also rose. This was driven by data from the global multi-model aggregation platform OpenRouter, which showed the top five most-called AI models in the latest week were all developed by Chinese companies. Xiaomi Corporation's MiMo V2.5 topped the list with 10.5 trillion tokens called in a single week. Meanwhile, Chuanzhi Education Co., Ltd. forecast its net profit for the first half of 2026 to be between 28 million and 40 million yuan, marking a return to profitability. The company has also launched a new "AI Embodied Intelligent Robot Development" discipline and released six teaching robot hardware units, with the first course scheduled for October.
The humanoid robot concept strengthened during the session. Zhongda Leader Intelligent Transmission Co., Ltd. rose for a second consecutive day, Fulai New Materials Co., Ltd. hit its daily limit, and Wolong Electric Group Co., Ltd., Fengguang Precision Co., Ltd., Orbbec Inc., and Greenharmonic Harmonic Drive Co., Ltd. also advanced. This was driven by an announcement from Unitree Technology that its IPO on the STAR Market will begin subscription on August 10, marking the official listing process for the first A-share humanoid robot company. Additionally, the head of Tesla's Optimus project revised the long-term annual production capacity target for the robot to 10 million units, ten times the original plan, in a social media post on July 30.
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