Mainland China's three major indices started Thursday's session on a firm footing, with the Shenzhen Component Index gaining nearly 1% and the ChiNext Index climbing over 1% in early trading. The computing hardware sector led the charge as copper-clad laminates, circuit boards, optical circuit switches, optical modules, HBM, optical communications, and high-speed copper connections all advanced sharply. In the meantime, precious metals, coal, and aerospace-military sectors experienced pullbacks.
Hong Kong equities moved in the opposite direction, with the Hang Seng Index and the Hang Seng Tech Index dipping further at the open. The tech gauge lost nearly 1%, as most internet stocks struggled, sending Xiaomi Corp (HKG: 1810) down over 4% and Baidu Inc (HKG: 9888) down 5%. Chip counters rebounded with Hua Hong Semiconductor Ltd (HKG: 1347) and GigaDevice Semiconductor Inc (SHE: 603986) leading the gains. AI large-model names recovered, pushing Zhongji Innolight Co Ltd (SHE: 300308) up nearly 10% in its Hong Kong listing. Government bond futures rebounded on the fixed income side, while commodity futures showed a mixed picture in China.
As of this writing, the Shanghai Composite Index was up 0.29%, the Shenzhen Component Index rose 0.95%, and the ChiNext Index advanced by 1.70%. In Hong Kong, the Hang Seng Index was down 0.44%, while the Hang Seng Tech Index fell 0.82%.
In the bond market, treasury futures climbed across the board, with the 30-year contract up 0.10%, the 10-year contract up 0.02%, the 5-year contract up 0.02%, and the 2-year contract flat.
Commodity futures in China were split, with the containerized freight index jumping over 4%, rubber up nearly 3%, and caustic soda, crude oil, eggs, iron ore, and rapeseed rising more than 1%. Paper pulp, stainless steel, glass, asphalt, copper, polysilicon, and platinum also gained, while fuel oil, aluminum, nickel, soybean meal, rebar, alumina, hot-rolled coils, tin, and industrial silicon fell. Platinum, silver, gold, and manganese silicon shed over 1%, coking coal and coke dropped 2%, and lithium carbonate tumbled 4%.
At 09:48, retail stocks saw another surge, with Zhongbai Holdings Group Co Ltd (SHE: 000759) and Central China Malls Co Ltd (SHE: 600280) both hitting the daily limit. Earlier, Baida Group Co Ltd (SHE: 600865) and Guofang Group Co Ltd (SHE: 600086) also touched the upper limit, while Ningbo Zhongbai Co Ltd (SHE: 600857), Hebei Hebai Group Co Ltd (SHE: 000158), Fujian Dongbai Group Co Ltd (SHE: 600693), and Maoye Commercial Co Ltd (SHE: 600828) followed suit.
On the news front, the Ministry of Commerce and six other government departments recently released an implementation plan to boost consumer goods spending. The plan targets a total retail sales of consumer goods around 60 trillion yuan by 2030, while fostering green, smart, and health-focused consumption into trillion-yuan markets for sustained growth.
Around 09:45, PCB-related stocks strengthened, with Shenzhen Zhongjin Lingnan Nonfemet Co Ltd (SHE: 002610) hitting the daily limit and Xunjiexing Technology Co Ltd (SHE: 301368) surging by 20% to its limit-up. Jingwang Electronic Co Ltd (SHE: 002463) neared its daily limit, with Shengyi Technology Co Ltd (SHE: 600183), Hua Zheng New Material Co Ltd (SHE: 603186), and Guanghe Technology Co Ltd (SHE: 300424) also advancing.
CPO concepts rebounded in early trading, as Cambridge Industries Group Co Ltd (SHE: 603083) hit the daily limit and Tiantsu Co Ltd (SHE: 600330) neared its limit-up. T&S Communications Co Ltd (SHE: 300570), Liantel Technology Co Ltd (SHE: 301205), Huasheng Changming Co Ltd (SHE: 301105), Accelink Technologies Co Ltd (SHE: 002281), and Zhongji Innolight Co Ltd (SHE: 300308) were among the top gainers.
This follows last Friday's rally in the US optical communications sector, where Marvell Technology, Inc. (NASDAQ: MRVL) rose more than 7%, Coherent Corp. (NYSE: COHR) gained over 6%, and Corning Inc. (NYSE: GLW) advanced more than 5%.
At 09:41, Changxin Technology, Zhongji Innolight, Eoptolink Technology Inc Ltd (SHE: 300502), Tianfu Communication Technology Co Ltd (SHE: 300394), Shengyi Electronic Co Ltd (SHE: 600183), Shennan Circuits Co Ltd (SHE: 002916), Wus Printed Circuit (Kunshan) Co Ltd (SHE: 002463), and Foxconn Industrial Internet Co Ltd (SHE: 601138) were broadly strong, leading the AI segment.
At 09:37, agriculture stocks moved actively, with Dunhuang Seed Co Ltd (SHE: 600354) posting its fourth limit-up in seven days and Yasheng Group Co Ltd (SHE: 600108) securing a third consecutive limit-up. Shennong Seed Industry Co Ltd (SHE: 300189), Wandong De Nong Co Ltd (SHE: 600371), Kangnong Seed Co Ltd (SHE: 300189), and Yuan Longping High-Tech Agriculture Co Ltd (SHE: 000998) also rose.
In terms of catalysts, the World Meteorological Organization issued a new bulletin confirming that an El Ni帽o event has formed and will continue to strengthen, potentially becoming a super-strength episode. This could significantly alter global precipitation and temperature patterns, with extreme weather risks persisting through 2027. The WMO projects a near-certain probability, close to 100%, that El Ni帽o will persist until February 2027.
At 09:36, the computing chip leader Moore Threads hit a 20% limit-down in early trading, reaching a new low since its listing, with its total market value falling below 200 billion yuan. The drop follows the unlocking of 25.7745 million restricted shares from its initial public offering and public placement for online placement investors on September 7.
At 09:26, the Shanghai Composite opened up 0.32%, while the ChiNext Index started 1.21% higher. Storage, HBM, insurance, and agriculture sectors led the gains, with Industrial and Commercial Bank of China Ltd (HKG: 1398) and Agricultural Bank of China Ltd (HKG: 1288) edging up slightly.
At 09:21, the Hang Seng Index opened flat at 0.01% higher, while the Hang Seng Tech Index started 0.26% lower. Cambridge Industries Group, Zhongji Innolight, and GigaDevice Semiconductor led the gains, with Agricultural Bank of China rising over 1%.
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