On July 14th, A-shares experienced a volatile morning session, initially trending lower with the three major indices collectively declining at the open. The Shanghai Composite Index briefly fell below the 3,900-point level before rapidly rebounding to reclaim it, while the ChiNext Index rose 1%. Sectors such as coal, oil, and natural gas rallied against the broader market trend. In contrast, concept stocks related to commercial aerospace, servers, and industrial gases saw collective adjustments, and sectors including aerospace & defense and software declined.
Hong Kong stocks opened lower and continued to fall, with both the Hang Seng Index and the Hang Seng Tech Index dropping over 1%. Technology and internet stocks were broadly lower, with Baidu, Inc. (HKG: 9888) falling more than 7%. AI large model stocks retreated, with Zhipu AI and MINIMAX both declining over 5%. In the bond market, treasury futures fell across the board. In commodities, most domestic commodity futures traded lower. However, crude oil and fuel oil surged against the trend, propelled by escalating geopolitical tensions that drove international oil prices to surge overnight. Key market movements:
A-Shares: As of writing, the Shanghai Composite Index was down 0.05%, the Shenzhen Component Index was up 0.24%, and the ChiNext Index was up 0.59%.
Hong Kong Stocks: As of writing, the Hang Seng Index was down 1.10%, and the Hang Seng Tech Index was down 1.36%.
Bond Market: Treasury futures were down across the board. As of writing, the 30-year main contract fell 0.18%, the 10-year main contract fell 0.05%, the 5-year main contract fell 0.02%, and the 2-year main contract fell 0.01%.
Commodities: Most domestic commodity futures traded lower. As of writing, crude oil surged 8%, fuel oil gained over 7%, asphalt rose 6%, while stainless steel and industrial silicon increased over 1%. Lithium carbonate, iron ore, Shanghai aluminum, Shanghai copper, Shanghai nickel, rapeseed, silicon manganese, coking coal, hot-rolled coil, and rubber were among the gainers. Rebar, soybean meal, alumina, polysilicon, caustic soda, pulp, glass, and coke futures declined. Eggs, the containerized freight index, Shanghai tin, palladium, and platinum fell over 1%, Shanghai gold dropped over 2%, and Shanghai silver fell another 3%.
Intraday Market Updates
09:55: The ChiNext Index quickly rose 1%, and the Shanghai Composite Index neared breakeven, returning above the 3,900-point level.
09:50: The Hang Seng Tech Index's intraday loss widened to 2%, with Baidu, Inc. (HKG: 9888) and Zhipu AI falling over 7%.
09:43: The semiconductor equipment sector rebounded during the morning session. Yitang Semiconductor Co., Ltd. surged over 10%, followed by gains in Topco Scientific Co., Ltd., Huafeng Test & Control Co., Ltd., Liandong Technology Co., Ltd., and Zhongke Feice Co., Ltd..
Reports indicate that Samsung Electronics is planning to accelerate the construction of its semiconductor national industrial park in Yongin, Gyeonggi Province, South Korea, aiming to bring its production timeline forward by one to two years, with a target for mass production in 2029.
09:41: The Shanghai Composite Index fell 0.5%, dropping below 3,900 points. Over 3,500 stocks in the market declined.
09:31: The oil and gas sector was active in early trading. Keli Shares Co., Ltd. rose over 10%, with Tongyuan Petroleum Co., Ltd., Zhongman Petroleum & Natural Gas Group Corp., Ltd., Potential Energy Co., Ltd., Shandong Molong Petroleum Machinery Co., Ltd., and Sinopec Oilfield Service Corporation following with gains.
The escalation of US-Iran conflict triggered a sharp rise in international oil prices. On July 13th, WTI crude oil futures settled at $78.14 per barrel, up $6.73 or 9.42%. Brent crude oil futures settled at $83.30 per barrel, up $7.29 or 9.59%.
09:26: The Shanghai Composite Index opened 0.12% lower, while the ChiNext Index opened 0.16% higher. Gold, PEEK materials, commercial aerospace, and CRO concept stocks weakened. Oil & gas, retail, and property sectors strengthened, while server and lithography machine themes were active.
09:21: The Hang Seng Index opened 0.13% lower, and the Hang Seng Tech Index opened 0.25% lower. PetroChina Company Limited (HKG: 0857) rose over 3%, CNOOC Limited (HKG: 0883) gained over 2%, and NIO Inc. (HKG: 9866) advanced nearly 3%. Baidu, Inc. (HKG: 9888) fell over 3%.
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