On June 26th, the three major A-share indices weakened. At the time of writing, the Shanghai Composite Index was down 0.83%, the Shenzhen Component Index had fallen more than 1.45%, and the ChiNext Index dropped 2.11%. Nearly 4,200 stocks across the Shanghai, Shenzhen, and Beijing exchanges declined.
Market Movers and Sectors in Focus
The semiconductor equipment sector saw repeated activity. Neway Valve Co., Ltd. surged by the 20% daily limit to a record high. Zhengfan Technology, Zhongke Feice, Sanjia Technology, and Changchuan Technology were among the top gainers.
The PCB (Printed Circuit Board) concept strengthened repeatedly, led by the copper-clad laminate (CCL) industry chain. Fiberglass leader China National Building Material (CNBM) Science & Technology Co., Ltd. hit its seventh limit-up in 13 trading days, continuing its record-breaking run. GOWORLD Co., Ltd. and Xianfeng Holdings Co., Ltd. also rose by the daily limit. International Composite Materials Co., Ltd., China Jushi Co., Ltd., Guanghe Technology, and Honghe Technology Co., Ltd. were among the leading gainers.
The green power concept performed actively. China Longyuan Power Group Corporation Limited surged straight to a limit-up. Sany Renewable Energy Co., Ltd. gained over 10%. China Energy Conservation and Environmental Protection Group (CECEP) Wind Power Corporation, Huadian Liaoneng, Chang Power, and Jingneng Power followed the upward trend.
Outlook and Institutional Perspectives
Looking ahead, Caixin Securities believes that overall, supported by heavyweight tech stocks, the market indices are showing a rebound trend with both volume and price rising, retaining short-term momentum for further gains. However, structurally, the market has not escaped an extremely fragmented pattern. Recent trends show that while the style rotation is primarily between "cyclical and tech" sectors, the tech sector generally has a stronger, more dominant trend, whereas the cyclical sector experiences relatively sharp volatility with significant negative feedback. Therefore, in the short term, the A-share market may maintain a volatile rebound trend, and the situation of sectoral structural differentiation is likely to persist.
Analysis of Key Sectors
Semiconductor Equipment Sector Sees Repeated Activity
The semiconductor equipment sector was repeatedly active. Neway Valve Co., Ltd. hit the 20% daily limit, reaching a record high. Zhengfan Technology, Zhongke Feice, Sanjia Technology, and Changchuan Technology were among the top gainers.
Commentary: On the news front, according to a local media report on Friday, Samsung Group is set to announce a plan on June 29th to invest 1,000 trillion won (approximately $647.53 billion) in South Korea over the next decade, which may include a 300 trillion won investment to build a chip factory in the southwestern part of the country.
PCB Concept Strengthens Repeatedly
The PCB concept strengthened repeatedly, led by the CCL industry chain. Fiberglass leader China National Building Material (CNBM) Science & Technology Co., Ltd. hit its seventh limit-up in 13 trading days, continuing its record-breaking run. GOWORLD Co., Ltd. and Xianfeng Holdings Co., Ltd. also rose by the daily limit. International Composite Materials Co., Ltd., China Jushi Co., Ltd., Guanghe Technology, and Honghe Technology Co., Ltd. were among the leading gainers.
Commentary: On the news front, a China Merchants Securities research report pointed out that PCB manufacturer Lieban has issued a price increase notice. In late May, PCB manufacturers had already raised prices by 20-30% for non-AI sector clients. Considering the current trend in raw material prices, it is expected that all PCB downstream sectors (including AI) will see a general price increase in July, with an estimated rise of 20% to over 30%.
Green Power Concept Performs Actively
The green power concept performed actively. China Longyuan Power Group Corporation Limited surged straight to a limit-up. Sany Renewable Energy Co., Ltd. gained over 10%. China Energy Conservation and Environmental Protection Group (CECEP) Wind Power Corporation, Huadian Liaoneng, Chang Power, and Jingneng Power followed the upward trend.
Commentary: On the news front, on June 25th, the first batch of ten thousand large yellow croaker fry were successfully transferred into the "Guoneng Huanghai No.1" marine ranch platform, independently developed and built by Longyuan Power. Additionally, the National Development and Reform Commission and the National Energy Administration issued the "15th Five-Year Plan for the Construction of a New Energy System." It mentioned that the main goal is to initially establish a clean, low-carbon, safe, and efficient new energy system by 2030.
Brokerage Views on the Market
Caixin Securities: Indices Show Rebound with Rising Volume and Price, Retaining Short-Term Upside Momentum
Caixin Securities believes that overall, supported by heavyweight tech stocks, the market indices are showing a rebound trend with both volume and price rising, retaining short-term momentum for further gains. However, structurally, the market has not escaped an extremely fragmented pattern. Recent trends show that while the style rotation is primarily between "cyclical and tech" sectors, the tech sector generally has a stronger, more dominant trend, whereas the cyclical sector experiences relatively sharp volatility with significant negative feedback. Therefore, in the short term, the A-share market may maintain a volatile rebound trend, and the situation of sectoral structural differentiation is likely to persist. Following Micron Technology's better-than-expected earnings report, market expectations for the performance of other tech giants may become more optimistic.
Tianfu Securities: Current Style Likely to Persist Until Micro-Cap Index and Dividend Sectors Stabilize
Tianfu Securities believes that the overall market is currently in a broad decline, with over 4,200 stocks falling yesterday. Looking at the intraday charts of major indices, the white lines (representing heavyweights) are all above the yellow lines, indicating that heavyweights are driving the market. This is accompanied by a resonance between the tech main theme and the non-bank financial sector. Under the combined effect of the main theme and heavyweight stock attraction, several directions are noteworthy: dividend and low-volatility dividend ETFs continue to break support levels in a primary downtrend under this attraction, while the micro-cap index, which reflects the average investor's profitability, also hit a new recent low. Investors not focused on the main theme or not speculating on non-bank financial sector opportunities have had a relatively poor experience in the recent market.
Overall, the market remains somewhat event-driven. Micron Technology's earnings report far exceeded market expectations, igniting sentiment for tech growth stocks, with enthusiastic responses across the Asia-Pacific markets. Within A-shares, the tech sector is also differentiated, with stocks having solid earnings support expectations performing stronger overall. The earnings verification window is gradually guiding fund flows. This week, the market overall has presented an alternating pattern of non-bank financials supporting the market and the rotation of the tech main theme. Both directions have a strong attraction effect on existing funds. Before the micro-cap index and dividend sectors stop declining, the current style is likely to persist.
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