A-share markets ended Wednesday with a notable divergence between large-cap indices and smaller stocks, as the STAR 50 index slumped more than 5% while small- and mid-cap shares broadly outperformed. The Shanghai Composite fell 0.59% to close at 3809.66 points, the Shenzhen Component dropped 0.96% to 13448.29 points, and the ChiNext Index declined 1.24% to 3302.55 points. The STAR 50 tumbled 5.08% to 1552.89 points, and the Beijing Stock Exchange 50 slipped 0.66% to 1076.07 points. Total turnover on the two main exchanges reached 1.997 trillion yuan, shrinking by 544.562 billion yuan from the prior session. Across the market, 4005 stocks advanced, 1466 declined, with 83 hitting the daily limit up and 9 hitting the limit down, representing an advance ratio of about 72%.
Where to focus
The session was characterized by a "weak index, strong stocks" pattern, where major benchmark losses were driven by heavyweights in the semiconductor sector, while the majority of smaller-cap names posted gains. The nuclear power and controlled fusion segment saw a broad-based rally, with stocks such as Jiusheng Electric, Libit, Hedun Intelligent, Rongfa Nuclear Power, and China Nuclear Construction hitting their daily limit highs. The catalyst came from a State Council executive meeting on July 31 approving four new nuclear projects—Liaoning Zhuanghe Phase I, Zhejiang Jinqimen Phase II, Guangdong Taipingling Phase III, and Shandong Laiyang Phase I—totaling eight new reactor units with combined investment exceeding 170 billion yuan. The power grid equipment, wind power, and electric motor sectors, forming part of the broader power equipment supply chain, also strengthened in tandem, with each sector gaining over 2.5%.
AI application themes remained active, with Chuanyi Education extending its winning streak to six consecutive limit-up sessions, while Tianyu Digital Entertainment and Hengyin Technology both notched two consecutive limit-up moves. The public beta of the DeepSeek-V4-Flash official API launched on July 31, and the National Supercomputing Internet began offering model invocation and download services on August 2. In contrast, the semiconductor supply chain continued its correction, with the STAR 50 falling 5.08%. GigaDevice hit the daily limit down, Xian Dao Ji Dian also slumped to the limit, Changchuan Technology plunged 12.41%, Jingce Electronics dropped 12.57%, Xin Yuan Micro declined 11.04%, and Tuojing Technology fell more than 10%. Overseas, South Korea's KOSPI index closed 5.13% lower, with Samsung Electronics and SK Hynix both losing nearly 9%, reflecting weakness in global semiconductor stocks. The glass fiber and electronic chemicals sectors also suffered, with China Jushi hitting the limit down in the fiber segment, and Honghe Technology sinking to its limit in electronic chemicals.
Key sector movements
Nuclear power and controlled fusion
The entire segment exploded higher, with more than ten stocks including Jiusheng Electric, Libit, Hedun Intelligent, Rongfa Nuclear Power, and China Nuclear Construction hitting the daily limit up. The State Council executive meeting on July 31 approved four new nuclear projects—Liaoning Zhuanghe Phase I, Zhejiang Jinqimen Phase II, Guangdong Taipingling Phase III, and Shandong Laiyang Phase I—totaling eight new reactor units with combined investment exceeding 170 billion yuan, providing a direct catalyst for the nuclear power equipment supply chain.
Power grid equipment and electricity
The power grid equipment sector rose 2.68%, with stocks such as Jiusheng Electric, Baili Electric, and Great Wall Electric hitting the limit up. The electricity sector gained 1.11%, with Shenzhen Nanyuan Power A, Huadian Liaoning Energy, and Leshan Electric Power all reaching the daily limit up. Continued progress in new grid construction and expectations of a power equipment supply chain boost from the concentrated approval of nuclear projects provided support for these sectors.
AI applications
Chuanyi Education extended its rally to six consecutive limit-up sessions, Tianyu Digital Entertainment and Hengyin Technology both notched two consecutive limit-up moves, and Jihong Shares hit the daily limit up. The public beta of the DeepSeek-V4-Flash official API launched on July 31, and the National Supercomputing Internet began offering model invocation and download services on August 2. Meanwhile, the photovoltaic equipment sector rose 1.81%, with Tongwei Co, Flat Glass Group, and Guosheng Technology hitting the limit up, buoyed by the State Administration for Market Regulation's July 31 guidance on price compliance in the photovoltaic industry.
Sectors under pressure
The semiconductor sector fell 5.84%, with memory chip stocks leading the declines. GigaDevice hit the daily limit down at 340.74 yuan, with turnover exceeding 23 billion yuan. Xian Dao Ji Dian also slumped to its limit, Changchuan Technology plunged 12.41%, Jingce Electronics dropped 12.57%, Xin Yuan Micro declined 11.04%, Tuojing Technology fell more than 10%, and Demingli slid 9.56%. The glass fiber sector fell 7.17%, with China Jushi hitting the limit down. These sectors had experienced significant gains in prior sessions and were among the top decliners on Wednesday. Overseas, South Korea's KOSPI index closed 5.13% lower, with Samsung Electronics and SK Hynix both losing nearly 9%.
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