According to market data, on August 11, the Shanghai Composite Index opened 0.40% lower at 3950.71 points, the Shenzhen Component Index fell 0.35% to 14,266.44 points, the ChiNext Index dropped 0.09% to 3,533.89 points, and the STAR 50 Index declined 1.41% to 1,713.26 points. As of 9:33 AM, a total of 1,092 stocks on the Shanghai and Shenzhen exchanges and the Beijing Stock Exchange were rising, while 4,201 were falling, and 249 remained flat.
Sectors leading the gains included precious metals, accessories, film and television, communication equipment, and biological products. The hardest-hit sectors were defense and military, building materials, conglomerates, light manufacturing, social services, and computers. The three major A-share indices collectively opened lower, with the Shanghai Composite Index breaking below the 3950-point level after closing 0.67% higher at 3966.59 points the previous session, ending a five-day winning streak. The STAR 50 Index saw the steepest decline, falling 1.41%.
In terms of sector performance, the precious metals sector opened more than 2% higher, boosted by continued strength in international gold prices. Communication equipment and biological products posted modest gains. Conversely, the defense and military sector opened at the bottom of the list, with pressure evident in the aerospace equipment sub-sector. Building materials, conglomerates, and light manufacturing sectors also weakened in tandem. Only 1,092 stocks were rising across the market, representing about 19% of the total, indicating low profitability. The petroleum and petrochemical sector opened slightly higher, up 0.24%, supported by an overnight surge of more than 5% in international oil prices.
Key Overnight Developments
U.S. stock markets ended lower, while international oil prices jumped more than 5% due to geopolitical tensions. On August 10, the Dow Jones Industrial Average fell 0.11% to 53,975.98 points, the Nasdaq Composite dropped 0.32% to 26,605.36 points, and the S&P 500 edged down 0.06% to 7,753.11 points. Driven by disruptions in U.S.-Iran relations and uncertainties regarding navigation through the Strait of Hormuz, WTI crude oil futures for the front-month contract surged 5.27% to settle at $82.30 per barrel, while Brent crude futures rose 5.17% to $87.87 per barrel. The S&P 500 energy sector climbed 4.63%, marking its best single-day performance since April 2025. COMEX gold futures increased 1.10% to settle at $4,448.20 per ounce. Chinese stocks listed in the U.S. bucked the trend, with the Nasdaq Golden Dragon China Index rising 1.65%, and Alibaba gaining 2.9%.
On the same day, China's National Development and Reform Commission and the National Energy Administration jointly released the "15th Five-Year Plan for Coal Industry Development," which proposes that by 2030, the five major coal supply guarantee bases will account for over 80% of national production. The plan also aims to increase the proportion of capacity from intelligent coal mines to 75% and raise the capacity share of large, modern coal mines to 87%. Separately, the People's Bank of China issued its "15th Five-Year Reform and Development Plan," which outlines goals to improve the modern monetary policy framework with Chinese characteristics, refine the base money supply mechanism, advance the internationalization of the renminbi, and deepen the two-way opening of financial markets.
Nvidia has confirmed a strategic partnership with six major financial institutions, including Apollo Global Management, Blackstone, and BlackRock, to mobilize over $500 billion in third-party capital for AI infrastructure construction. Meanwhile, several A-share companies announced significant share buybacks. Longsys Electronics reported a net profit of 10.577 billion yuan for the first half of the year, a year-on-year increase of 71,528.66%, and announced a buyback plan of 400 million to 800 million yuan. MTC Co., Ltd. plans to buy back 300 million to 500 million yuan worth of shares, and Yongmao Tai intends to repurchase 150 million to 300 million yuan. Alibaba Cloud also disclosed plans to more than double its global production capacity for modular data centers.
Market Outlook for August 11
All three major A-share indices opened lower on August 11, with the Shanghai Composite Index entering a correction after five consecutive days of gains. The profitability rate at the open was less than 20%, indicating profit-taking pressure from short-term traders. Escalating U.S.-Iran tensions overnight drove international oil prices up more than 5% in a single day, pushing WTI crude back above $82 per barrel, while the U.S. Dollar Index rebounded to above 99.8. These external uncertainties are exerting some pressure on risk appetite.
From a sector perspective, the precious metals sector opened higher, benefiting from the continued strength in COMEX gold prices. The coal sector, despite positive policy support from the "15th Five-Year Plan," saw its initial gains narrow after the market opened. Meanwhile, previously rotating sectors like defense and building materials experienced notable pullbacks, indicating a faster pace of style rotation in the market. The consensus among institutions leans towards a short-term consolidation phase for the index, but they believe structural opportunities remain in the medium term, driven by industrial policy catalysts in areas such as coal and AI infrastructure. The news of Nvidia's $500 billion AI financing platform may provide a sentiment boost for AI computing power and optical communication sectors. However, investors should monitor the evolution of the U.S.-Iran situation and the potential cost pressures on downstream industries from rising oil prices.
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