Amidst severe turbulence in international precious metals markets, A-share non-ferrous metals witnessed another wave of limit-down declines, with gold and silver sectors collectively plummeting. The CPO (Co-Packaged Optics) sector was active early in the session, with leading stock Eoptolink surging over 10%. Last Friday, Eoptolink's latest announcement indicated an expected full-year net profit reaching up to 9.9 billion yuan, a year-on-year increase of nearly 249%, primarily driven by sustained growth in AI-powered computing investment.
On February 2nd, A-shares experienced volatile divergence. The Shanghai Composite Index and Shenzhen Component Index trended lower, while the ChiNext Index turned negative after an initial surge, having risen up to 1% at the open. The non-ferrous metals sector once again saw a widespread limit-down rout. Baijiu (white liquor) and electrical grid sectors saw pull-ups. Hong Kong stocks opened lower and continued declining, with the Hang Seng Tech Index falling over 2%. Technology stocks generally declined, and automotive stocks experienced significant drops.
In the bond market, government bond futures oscillated with gains. In commodities, domestic commodity futures saw broad-based declines, with Shanghai gold, silver, and copper all plummeting sharply. Core market movements:
A-shares: As of writing, the Shanghai Composite Index fell 0.72%, the Shenzhen Component Index fell 0.72%, and the ChiNext Index fell 0.23%.
Hong Kong Stocks: As of writing, the Hang Seng Index fell 1.23%, and the Hang Seng Tech Index fell 2.00%.
Bond Market: Government bond futures fell across the board. As of writing, the 30-year main contract rose 0.20%, the 10-year main contract was flat, the 5-year main contract fell 0.02%, and the 2-year main contract was flat.
Commodities: Domestic commodity futures were mostly lower. As of writing, the main contracts for Shanghai silver, platinum, and palladium hit limit-down, Shanghai tin fell 11%, Shanghai gold fell over 10%, Shanghai copper and Shanghai nickel fell over 6%, Shanghai aluminum fell 5%, fuel oil fell over 4%, stainless steel, containerized freight index, lithium carbonate, and asphalt all fell over 3%, and rubber fell over 2%.
At 10:11, the non-ferrous metals sector continued its broad decline, with over thirty stocks, including Silver Corp, Hunan Silver, China Gold, and Zhaojin Mining, hitting limit-down.
At 09:58, commodity concept LOFs weakened across the board. Multiple funds, including Commodity LOF, SDIC Resources LOF, Resources LOF, and Southern Crude Oil LOF, hit limit-down. Guotai Commodity LOF fell over 8%, Harvest Crude Oil LOF and Huabao Oil & Gas LOF both fell over 7%, and E Fund Crude Oil LOF fell over 5%.
At 09:54, the three major telecom operators collectively weakened in the morning session. China Mobile fell nearly 5%, hitting a new low since June 2024. China Unicom and China Telecom both fell over 4%.
On the news front, China Mobile, China Unicom, and China Telecom all announced on February 1st that the applicable scope of the value-added tax category for telecommunications services had been adjusted, with the tax rate increased from 6% to 9%, which would impact company revenues and profits.
At 09:51, the baijiu concept performed actively. Shuijingfang saw its second limit-up in three days, Huangtai Wine Industry hit three consecutive limit-ups, while Jinseed Liquor, Kweichow Moutai, Zhongrui Shares, and Jinhuijiu followed with gains.
Regarding news, a CITIC Securities research report pointed out that it expects the baijiu industry to bottom out in 2026, with leading players' market share increasing, and is optimistic about potential investment opportunities around the Chinese New Year period, suggesting the sector might hit a major decadal low.
At 09:36, the Hang Seng Tech Index expanded its losses to 2.2%. XPeng Motors fell over 9%, NIO fell over 6%, while Leapmotor and BYD shares fell over 5%.
At 09:34, the ChiNext Index rose over 1%. Computing hardware stocks like CPO continued their strong performance, with Eoptolink surging over 10%.
At 09:27, oil and gas stocks opened broadly lower. Tongyuan Petroleum, Zhongman Petroleum, Zhunyou Shares, PetroChina Oilfield Service, and Beken Energy opened at limit-down, while Keli Shares and Potential Energy fell over 10%.
At 09:21, the Hang Seng Index opened down 1.06%, and the Hang Seng Tech Index fell 1.29%. XPeng Motors fell over 5%, while Alibaba, NetEase, Huahong Semiconductor, and Bilibili fell over 2%.
At 09:01, commodity futures opened with the main contracts for Shanghai silver and platinum hitting limit-down, palladium falling over 15%, and Shanghai gold and Shanghai tin falling over 9%.
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