As the trading day drew to a close, the market experienced a sudden shift, with Hangzhou Lion Microelectronics Co.,Ltd. (SH: 605358) hitting the daily limit-down.
The market showed strength for much of the session on July 3rd, even climbing at one point, but ultimately succumbed to a late-session sell-off. Despite this, the three major indices still managed to close with modest gains. The Shanghai Composite Index rose by 0.37%, the Shenzhen Component Index increased by 0.64%, and the ChiNext Index edged up by 0.07%.
In terms of market breadth, 3,804 stocks advanced, with 160 of those hitting their daily limit-up, while 1,628 stocks declined.
Robotics concept stocks saw a surge, with over 40 companies, including Changshu Bearing, Kingfa Sci. & Tech., Bewinner Communications, and Zhongda Desheng, sealing their gains at the limit-up.
The precious metals sector continued its upward trend. Chifeng Gold and Zhaojin Mining secured their second consecutive limit-up boards, while Western Region Gold and Sichuan Gold also rose to their limit.
Innovative drug concept stocks remained active, with Shiyao Jingfeng achieving two consecutive limit-ups and Salubris Pharmaceuticals also hitting the limit.
On the downside, the semiconductor industry chain faced pressure. Notably, Gip Tech and Hangzhou Lion Microelectronics Co.,Ltd. (SH: 605358) both fell by the daily limit-down.
It is worth noting that a broad rally occurred in Asian markets and U.S. stock futures. South Korea's KOSPI surged nearly 6%, Japan's Nikkei 225 gained about 1.5%, and Nasdaq futures rose approximately 1%.
The widespread gains in global equities came as concerns eased that the recent artificial intelligence-driven rally had advanced too rapidly. Friday's uptick provided some relief following significant selling pressure in tech stocks, particularly chipmakers. Previously, there were worries that the AI-fueled market surge in Q2 may have been overextended. The upcoming earnings season is seen as a crucial test for whether high valuations and massive investments in AI infrastructure can translate into actual profits.
Equity strategists at Goldman Sachs Group stated, "The fundamentals are still very strong, and the market is still underestimating that. Whether it's memory stocks or the entire AI hardware supply chain, the overall earnings environment still has significant upside potential."
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