A-shares opened lower but staged a strong rebound on August 5, with the three major indices collectively rising. The market displayed a pattern of broad-based gains, highlighted by a surge of over 5% in the Sci-Tech Innovation 50 index. By midday close, the Shanghai Composite Index had risen 1.34% to 3,873.56 points, the Shenzhen Component Index climbed 1.56% to 14,101.90 points, and the ChiNext Index gained 0.89% to 3,519.86 points. The Sci-Tech Innovation 50 Index soared 5.18%, while the Beijing Stock Exchange 50 Index advanced 2.29%. Across the entire market, 3,940 stocks advanced, while 1,373 declined. The combined half-day trading volume of the Shanghai, Shenzhen, and Beijing markets reached 1.7025 trillion yuan, representing a significant increase of 332.9 billion yuan from the previous trading session.
In terms of sector performance, the semiconductor supply chain saw a broad-based explosion, with sectors such as electronic chemicals, memory chips, lithography equipment, and SMIC concept stocks leading the gains. Precious metals and minor metals sectors also performed strongly. Computing power leasing and AI application concepts were repeatedly active. The intelligent driving concept opened sharply higher, with multiple stocks hitting their daily price limits. On the downside, the oil and gas extraction and services sector experienced a volatile correction, with stocks like Tongyuan Petroleum and Keli Shares weakening. Banking, baijiu, and traditional Chinese medicine sectors showed sluggish performance. The CPO concept opened significantly lower but rebounded slightly, with early-stage strong stocks like Zhongji Innolight and Eoptolink Technology seeing capital outflows. Overall, funds rotated out of high-level sectors like communication equipment into semiconductors and non-ferrous metals, highlighting a clear structural market trend.
Semiconductor Supply Chain Explodes Broadly
The electronic chemicals sector surged 7.52%, the semiconductor sector rose 5.86%, and the SMIC concept increased by 6.71%. JinhaiTong achieved a second consecutive daily limit-up, while stocks like Heyuan Gas, Dawei Shares, Zhongju Xincai, and Jianghua Micro also hit daily limits. Companies like Huahong Hongli, Beijing Junzheng, and GigaDevice rose over 5%. On the news front, the "Regulations on the Protection of Integrated Circuit Layout Designs (2026 Revision)" was published on August 3, set to take effect on October 15, 2026, aiming to protect exclusive rights to integrated circuit layout designs and encourage technological innovation. Industry data from TrendForce indicates the DRAM supply shortage will persist until 2027. Global memory chip prices have risen for three consecutive quarters, with July sales hitting a record high of $74.6 billion. Additionally, the Philadelphia Semiconductor Index surged 6.55% overnight, with ARM jumping over 17% and Intel rising over 9%, providing a sentiment boost to A-share semiconductor stocks.
Computing Power Leasing Concept Shows Repeated Activity
The computing power leasing concept continued to strengthen, with Litong Electronics achieving a 4-day, 3-limit-up pattern. Xinkaipu hit a 20% daily limit, Hanxin Technology rose over 16%, and stocks like Hongjing Technology and Jinlong Shares also hit daily limits. Gaole Shares and Softtone Power followed the upward trend. On the news front, the National Development and Reform Commission clarified at a late July press conference that the "15th Five-Year Plan" period will see an additional direct investment of 4 trillion yuan in computing power network construction, formally incorporating the computing power network into the national "Six Major Networks" deployment. Industry-wise, multiple companies have recently disclosed large-scale computing power orders: Bee Helper signed a 4.608 billion yuan computing power service contract, Gaole Shares signed a 3.195 billion yuan contract, and Xingyun Technology increased its computing power service contract to 3.053 billion yuan. Data from the China Academy of Information and Communications Technology shows that domestic AI computing power demand grew 417% year-on-year in the first quarter of 2026, while effective supply growth was only 128%, widening the supply-demand gap. Furthermore, the global multi-model aggregation platform OpenRouter released its latest weekly AI large model call volume ranking, with the top five products all developed by Chinese companies.
Intelligent Driving Concept Explodes at Opening
The intelligent driving concept was active at the open, with stocks like Suoling Shares, Zhejiang Shibao, Xingmin Zhitong, and Shanzi Gaoke hitting daily limits. Wanji Technology rose over 10%, and Haoen Electric also gained over 10%. On the news front, the Ministry of Industry and Information Technology formally released the mandatory national standard "Safety Requirements for Intelligent Connected Vehicle Autonomous Driving Systems" (GB44721-2026) on August 4, scheduled to be implemented on July 1, 2027. This is China's first mandatory national standard covering L3 and L4 high-level autonomous driving, establishing a safety requirement system from four dimensions: enterprise full-lifecycle safety assurance, dynamic driving task execution capability, human-machine interaction notification, and multi-dimensional inspection and testing. It provides a unified safety access baseline for autonomous driving products.
Precious and Minor Metals Sectors Lead Gains
The precious metals sector rose 6.20%, and the minor metals sector increased by 6.21%. Sichuan Gold hit its daily limit, while stocks like Xiaocheng Technology, Zhuye Group, and Chifeng Gold strengthened significantly. Minor metals stocks like Yunnan Germanium, China Tungsten High-Tech, and Ningxia Orient Tantalum also hit daily limits. On the news front, COMEX gold futures rose 1.07% overnight to $4,134.2 per ounce, while spot gold touched $4,100 per ounce. US Treasury Secretary Bessent indicated that the US and Iran may reach an agreement to reopen the Strait of Hormuz, leading to a sharp drop in international oil prices. This eased market concerns about inflation, cooling expectations for interest rate hikes, and weakening the US dollar and Treasury yields, which supported precious metals. Additionally, the World Gold Council's second-quarter 2026 "Global Gold Demand Trends Report" released on July 30 showed that global central bank net gold purchases reached 289 tonnes in Q2, a year-on-year increase of 62%. The Bank of Korea announced on August 3 that it would resume gold purchases for the first time in 13 years, further boosting market sentiment.
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