International gold and silver prices continued their sharp ascent, with gold breaking through $5,000 and silver surpassing $108, prompting another significant rally in the precious metals sectors of both A-shares and Hong Kong stocks. On January 26th, A-shares experienced volatile adjustments, with the three major indices diverging; driven by the CSI 300 and SSE 50, the Shanghai Composite Index trended higher, while the ChiNext Index fell by as much as 1% at one point. Gold stocks surged once again, whereas space photovoltaic and commercial aerospace concept stocks, after opening higher, underwent significant corrections. Hong Kong stocks opened high but then moved lower, with the Hang Seng Tech Index falling nearly 2%; technology and internet stocks declined across the board, while gold stocks led the gains, and LAOPU GOLD surged over 12% intraday. In the bond market, treasury bond futures were mostly lower. In commodities, domestic commodity futures saw widespread gains, with metal futures exploding higher; Shanghai silver surged over 13%. Core market movements:
A-shares: As of writing, the Shanghai Composite Index rose 0.27%, the Shenzhen Component Index fell 0.41%, and the ChiNext Index fell 0.43%.
Hong Kong stocks: As of writing, the Hang Seng Index rose 0.23%, while the Hang Seng Tech Index fell 1.36%.
Bond market: Treasury bond futures were mostly down. As of writing, the 30-year main contract rose 0.02%, the 10-year main contract fell 0.04%, the 5-year main contract fell 0.03%, and the 2-year main contract fell 0.03%.
Commodities: Domestic commodity futures were broadly higher. As of writing, Shanghai silver surged over 13%; platinum, palladium, Shanghai tin, and other metal futures rose across the board, with platinum up 9% and palladium up 7%. The containerized freight index rose 6%, lithium carbonate rose 5%, fuel oil rose 4%, Shanghai nickel and Shanghai gold rose over 3%, polysilicon and Shanghai copper rose over 2%, glass, asphalt, and industrial silicon rose over 1%, while stainless steel, rebar, eggs, aluminum, hot-rolled coil, rubber, soybean meal, and others all advanced.
The precious metals concept continued its explosive performance. SD GOLD achieved its 3rd limit-up in 6 days, Sichuan Gold its 4th limit-up in 8 days, while Xingye Silver Tin, Hunan Gold, Shengda Resources, Hunan Silver, and Yuguang Gold Lead all hit their upside limits. Xiaocheng Technology rose over 15% to set another record high, and Shanjin International followed with gains.
On the news front, as previously reported, global markets are caught in a wave of risk aversion. Spot gold, driven by geopolitical turmoil and "credit depreciation" trades, has broken through $5,000 per ounce for the first time in history. The oil and gas sector strengthened intraday amid fluctuations. CNOOC rose over 5%, hitting a record high, while PetroChina and Sinopec rose over 4%. Tongyuan Petroleum, Potential恒信, Shandong Molong, China Oilfield Services, and others followed with gains.
The news catalyst was a major winter storm impacting most of the United States, which caused US natural gas prices to surge significantly on January 25th, with futures prices breaking through the $6 per million British thermal units mark for the first time since 2022. Hong Kong-listed semiconductor concepts moved lower. Tianshu Zhixin fell over 5%, Innoscience fell over 4%, SMIC and GigaDevice fell over 3%, while Shanghai Fudan and Huahong Semiconductor fell over 2%.
The three major A-share indices collectively turned red, with the ChiNext Index falling nearly 1%. Commercial aerospace, defense, baijiu (white liquor), and semiconductor chips were among the sectors leading the declines, with nearly 4,000 stocks falling across the Shanghai, Shenzhen, and Beijing Stock Exchanges. LAOPU GOLD's share price surged up to 14% intraday, boosted by factors including the rising price of gold. The Hang Seng Tech Index saw its intraday loss widen to 1%. Baidu, XPeng Motors, and Kuaishou each fell over 3%. The Shanghai Composite Index opened 0.21% higher, while the ChiNext Index opened 0.48% higher. The photovoltaic industry chain strengthened again, with space photovoltaic concept stocks leading the gains; themes including gold, lithium mining, humanoid robots, and AI applications were active. Commercial aerospace concept stocks experienced localized pullbacks. The Hang Seng Index opened 0.35% higher at 26,844.04 points; the Hang Seng Tech Index opened 0.05% higher. Pop Mart rose over 4%, and Zijin Mining rose nearly 3%. Tencent Music rose nearly 2%; Baidu fell nearly 2%, and XPeng Motors fell 1.8%. The central parity rate for the yuan against the US dollar was set at 6.9843, an increase of 86 basis points; the previous trading day's central parity rate was 6.9929, the previous day's official closing price was 6.9642, and the previous night session closed at 6.9630. At the commodity futures market open, the main Shanghai silver contract surged over 11%, Shanghai tin rose over 9%, lithium carbonate and platinum rose over 6%, palladium rose over 5%, fuel oil rose over 4%, while BR rubber, Shanghai gold, methanol, LPG, Shanghai copper, international copper, Shanghai nickel, and crude oil all rose over 2%.
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