The three major A-share indices opened lower on June 24th. The morning session saw weak and volatile trading, with the indices mixed shortly before noon. In the afternoon, the Shenzhen Component Index and the ChiNext Index rallied together, although the broader market still showed a predominance of declining stocks.
Looking across the market sectors, the semiconductor industry chain experienced a significant surge, with advanced packaging, lithography machines, and memory leading the gains. Sectors such as optical fiber, CPO, lithium mining, CRO, and fluorochemical concepts were also active. In contrast, financials, coal, and major consumer sectors were among the top decliners.
At the close, the Shanghai Composite Index rose 0.11% to 4110.81 points. The Shenzhen Component Index gained 1.24% to 16,051.32 points, while the ChiNext Index advanced 1.41% to 4,251.42 points.
Wind data showed that 1,433 stocks across the Shanghai, Shenzhen, and Beijing Stock Exchanges closed higher, while 4,032 stocks declined, with 61 stocks remaining flat.
The total trading volume for the Shanghai and Shenzhen markets was 3,284.3 billion yuan, a decrease of 156.4 billion yuan from the previous session's 3,440.7 billion yuan. Specifically, the Shanghai market saw a turnover of 1,514.2 billion yuan, down 80.3 billion yuan from the previous session's 1,594.5 billion yuan. The Shenzhen market's turnover was 1,770.1 billion yuan.
According to DZH VIP data, 178 stocks across the two main boards and the Beijing Stock Exchange rose by more than 9%, while 19 stocks fell by more than 9%.
Semiconductors Strengthen Again, Social Services Lead Declines
In terms of sectors, semiconductors strengthened once more. Stocks like Huicheng Co., Ltd. (SHSE: 688403), Fuman Microelectronics Co., Ltd. (SZSE: 300671), New Vision Microelectronics Inc. (SHSE: 688593), Yandong Microelectronics Co., Ltd. (SHSE: 688172), and Jinhaitong (SHSE: 603061) hit their daily limit-up or surged over 10%.
The electronics sector also saw another wave of limit-up gains. Stocks including Molei Optical Technology Co., Ltd. (SHSE: 688502), Huaya Intelligent Technology Co., Ltd. (SZSE: 003043), Aihua Group Co., Ltd. (SHSE: 603989), Faratronic Co., Ltd. (SHSE: 600563), and Jiangsu Changjiang Electronics Technology Co., Ltd. (SHSE: 600584)—nearly 20 in total—reached their daily limit or rose over 10%.
Basic chemicals gained strength before noon. More than 10 stocks, such as Ruihuatai (SHSE: 688323), Taian New Materials Co., Ltd. (SZSE: 002254), Jianye Co., Ltd. (SHSE: 603948), Ping An Electrical Appliance Group Co., Ltd. (SZSE: 001359), Hongbo New Material Co., Ltd. (SHSE: 605366), and Yonghe Co., Ltd. (SHSE: 605020), hit their daily limit or surged over 10%.
Social services underperformed. Stocks like Three Gorges Tourism (SZSE: 002627), Qujiang文旅 (Rights Defense) (SHSE: 600706), Sante Cableway (Rights Defense) (SZSE: 002159), Dalian Sunasia Tourism Holding Co., Ltd. (SHSE: 600593), and Tianfu Cultural Tourism Co., Ltd. (SZSE: 000558) fell over 5%. QuanTong Education (SZSE: 300359) and Zhonggong Education (SZSE: 002607) declined over 3%.
Agriculture, forestry, animal husbandry, and fishing were also among the top losers. Beidahuang (SHSE: 600598) hit its daily limit-down. Stocks including Yasheng Group (SHSE: 600108), Guolian Aquatic Products Co., Ltd. (SZSE: 300094), Quanyin Hi-Tech (Rights Defense) (SZSE: 300087), Fujian Jinsen Forestry Co., Ltd. (SZSE: 002679), and Tianshan Biological (SZSE: 300313) fell more than 5%.
Coal stocks remained weak. Dayou Energy (SHSE: 600403) and Zhengzhou Coal Industry & Electric Power Co., Ltd. (SHSE: 600121) dropped over 8%. Yunmei Energy (SHSE: 600792), Antai Group Co., Ltd. (SHSE: 600408), Liaoning Energy (SHSE: 600758), Yunwei Co., Ltd. (SHSE: 600725), and Shaanxi Heimao (SHSE: 601015) declined more than 5%.
Consolidation Phase Persists with K-Shaped Divergence
Analysis from one securities firm suggests the A-share market's consolidation phase continues, with significant K-shaped divergence evident. What conditions are needed to break out of this range? Changes in fundamental factors require observation of the half-year earnings preview disclosures. Typically, companies with better performance issue pre-announcements around mid-July, while industry-level changes might become apparent by early Q3. Changes in discount rate factors depend on global liquidity. Over the next quarter, U.S. inflation readings are expected to gradually decline, which could partially reverse the market's excessively priced-in expectations for interest rate hikes, leading to a marginal easing in expectations for global macro liquidity. Timing-wise, changes in global macro liquidity could occur around the release of U.S. economic data in July. Regarding micro-liquidity, recent trading volumes in Japan and South Korea have gradually declined after peaking on May 28th, while trading volumes in China and the U.S. have gradually increased over the past week, indicating a relatively healthy structure for market micro-liquidity. In summary, the reconfirmation of earnings within industrial trends and the marginal easing of global macro liquidity are key factors for breaking out of the consolidation phase. Both are expected to change by early Q3. Coupled with a concentration of micro-liquidity, a correction in pricing for global liquidity could initiate after the consolidation ends in early Q3, potentially driving the market upward again.
Another securities firm's view is that in the short term, it's advisable to first observe whether the broader market can stabilize. If it recovers quickly, investors can continue to participate based on the rotation logic between technology and cyclical sectors. If short-term pressure persists, it would be prudent to manage positions reasonably and wait for signals of a market recovery. Although the market is currently in a phase of style rebalancing, medium-term pricing logic for A-shares will ultimately revert to fundamentals and earnings drivers.
Analysis from a further securities firm suggests that, strategically, as June draws to a close, liquidity is key. It recommends controlling position sizes and paying attention to the sustainability of defensive sectors, noting a tendency for rotation within defensive plays. Opportunities for repeated activity in the brokerage sector should be monitored. The medium-term trend for the technology direction remains intact, but short-term pressures from profit-taking and external market influences persist. It's crucial to watch that sector trends do not break key support levels. Investors could wait for sufficient pullbacks before focusing on分批 low吸 of品种 with strong half-year earnings certainty. Close tracking of U.S.-Iran negotiation progress, today's trading volume changes, and related performances in external markets is also advised.
Another analysis points out that given the gradual resolution of overseas geopolitical and liquidity risks, confidence in the market's medium-term performance remains. However, the technology sector currently holds significant paper profits, creating substantial selling pressure. The short-term market is likely to remain volatile and divergent, awaiting the digestion of profits in tech themes and the预热 of the half-year earnings season. Against the backdrop of gradually subsiding geopolitical and liquidity risks, despite short-term volatility, the upward price trends for cyclical sectors like non-ferrous metals, rare earths, and minor metals appear certain. Similarly, the supply-demand dynamics driving sectors like semiconductors, communications, power grid equipment, and robotics within the technology manufacturing sphere offer clear certainty. Furthermore, with average daily trading volumes consistently maintaining historically high levels above 3 trillion yuan, the brokerage sector's earnings benefit is exceptionally prominent while valuations remain low, suggesting strong potential for修复.
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