Major Chinese Stock Indices Decline Amid Choppy Trading, Semiconductor Sector Shows Strength

On May 28, China's A-share market experienced choppy declines, with the three major indices opening lower collectively. The ChiNext Index briefly fell by 1%. The semiconductor industry chain, including segments like glass fiber and semiconductor silicon wafers, showed notable activity. HUA HONG SEMI and SMIC saw subsequent upward movements. Sectors such as rare earth permanent magnets, real estate, and defense rose, while adjustments were observed in baijiu (white liquor), non-ferrous metals, and photovoltaics.

Hong Kong stocks opened lower and continued to decline, with the Hang Seng Index dropping 1% at the open. The Hang Seng Tech Index fluctuated downward, with technology and internet stocks collectively underperforming. Meituan fell nearly 5%. The semiconductor sector rose again, with HUA HONG SEMI surging over 6%. Pop Mart International Group Limited gained over 3% against the market trend, following reports that investor Duan Yongping and his concert parties increased their stake to 5.69%, triggering mandatory disclosure requirements.

In the bond market, government bond futures rose amid fluctuations. In commodities, most domestic commodity futures fell, with metals like Shanghai silver leading the declines.

Core Market Movements:

A-Shares: As of writing, the Shanghai Composite Index fell 0.35%, the Shenzhen Component Index dropped 0.71%, and the ChiNext Index declined 0.75%.

Hong Kong Stocks: As of writing, the Hang Seng Index decreased 0.89%, and the Hang Seng Tech Index fell 0.07%.

Bond Market: Government bond futures rose with fluctuations. As of writing, the 30-year main contract gained 0.17%, the 10-year main contract rose 0.06%, the 5-year main contract increased 0.04%, and the 2-year main contract remained flat.

Commodities: Most domestic commodity futures declined. As of writing, coke, coking coal, and lithium carbonate rose over 1%. A few varieties like ferromanganese silicon, eggs, hot-rolled coil, glass, rebar, and containerized freight index moved higher. Stainless steel, soybean meal, iron ore, alumina, pulp, rapeseed, industrial silicon, polysilicon, caustic soda, and asphalt all saw gains. Shanghai nickel, Shanghai tin, Shanghai copper, Shanghai aluminum, palladium, fuel oil, and Shanghai gold fell over 1%. Crude oil, platinum, and Shanghai silver dropped more than 2%.

09:43 The Hong Kong Hang Seng Index's intraday loss widened to 1.2%. Meituan fell over 4%, and WuXi AppTec dropped more than 3%.

09:42 The semiconductor industry chain rebounded with fluctuations in the morning session, led by foundry and silicon wafer segments. Hua Hong Semiconductor Limited surged over 10%, continuing to hit a record high. Xian Yicai, Yujing Shares, Zhongchuan Special Gas, Semiconductor Manufacturing International Corporation, and Ingenic Semiconductor followed with gains.

The real estate sector moved up sharply. Tianjian Group hit the daily limit up in a straight line. Jintou Chengkai rose over 6%. Wantong Development, Jingtou Development, Huali Family, and Dalong Real Estate followed with increases.

09:39 The ChiNext Index fell over 1.00%. The Shanghai Composite Index declined 0.26%, and the Shenzhen Component Index dropped 0.85%. Precious metals, semiconductors, baijiu, and photovoltaics were among the leading decliners. Nearly 2,300 stocks fell across the Shanghai, Shenzhen, and Beijing markets.

09:32 The power sector remained active. Guangdong Electric Power Development A-share hit its second consecutive daily limit up. Huadian Energy touched the limit up. Hunan Huayin Electric Power, Huadian Liaoneng, and Gansu Energy followed with gains.

09:26 The Shanghai Composite Index opened 0.33% lower. The ChiNext Index fell 0.09%. The semiconductor and computing hardware industry chains corrected, with memory, advanced packaging, and PCB segments leading the decline. AI applications, short drama games, and photovoltaic themes weakened. Power, computing power leasing, and consumer electronics concept stocks strengthened.

09:21 The Hang Seng Index opened down 0.39%. The Hang Seng Tech Index fell 0.25%. NIO rose over 7%. Ganfeng Lithium and East Buy gained over 2%. Kuaishou fell over 1%. Pop Mart International Group Limited rose over 3% on the news that Duan Yongping and his concert parties' stake reached 5.69%, triggering mandatory disclosure requirements.