Chinese and Hong Kong semiconductor and computing hardware stocks experienced another collective downturn, with optical modules, circuit boards, optical chips, and memory chips all declining. Leading memory stock Demingli hit the limit down again, following a significant sell-off in the overnight US semiconductor sector.
On July 17, A-shares opened lower and continued to decline, with the three major indices falling further at the market open. The Shanghai Composite Index fell 1%, while the ChiNext Index and the STAR 50 Index both plunged over 4% at one point. The semiconductor industry chain and computing hardware stocks collectively adjusted, with optical modules, optical chips, and circuit boards leading the declines. The biotech sector also fell, with CRO and innovative drug stocks declining. KIMI concept stocks rebounded, while oil & gas and power sectors were active.
Hong Kong stocks opened higher but turned lower, with the Hang Seng Index and the Hang Seng Tech Index both falling at the open. The Hang Seng Tech Index dropped over 1%. Most technology and internet stocks pulled back, and the semiconductor sector declined, with stocks like Huahong Hongli and GigaDevice leading the losses. AI large model stocks slumped heavily, with KNOWLEDGE ATLAS plunging over 13% and MINIMAX falling nearly 5%. This followed the release of Kimi's new generation of open-source foundational model, Kimi K3, whose comprehensive intelligence level is close to the global frontier of closed-source models.
Bond and Commodity Market Movements
In the bond market, government bond futures fell across the board. In commodities, most domestic commodities declined, with Shanghai gold and silver futures leading the losses. Overnight, international spot gold broke below the $4,000 per ounce level.
Core Market Performance at Time of Writing
A-Shares: At the time of writing, the Shanghai Composite Index was down 0.71%, the Shenzhen Component Index was down 2.74%, and the ChiNext Index was down 3.86%.
Hong Kong Stocks: At the time of writing, the Hang Seng Index was up 0.93%, while the Hang Seng Tech Index was down 2.24%.
Bond Market: Government bond futures were down across the board. At the time of writing, the 30-year main contract was down 0.03%, the 10-year main contract was down 0.01%, the 5-year main contract was down 0.01%, and the 2-year main contract was flat.
Commodities: Most domestic commodity futures were down. At the time of writing, lithium carbonate was up over 3%, while asphalt was up 1%. Crude oil, stainless steel, rapeseed, rebar, coking coal, industrial silicon, fuel oil, containerized freight index, hot-rolled coil, coke, iron ore, and Shanghai aluminum were among the gainers. Polysilicon, soybean meal, pulp, ferromanganese, Shanghai tin, Shanghai copper, eggs, Shanghai nickel, and alumina were lower. Shanghai gold, rubber, caustic soda, and glass fell over 1%, while platinum, palladium, and Shanghai silver all dropped more than 2%.
Key Intraday Moves
09:50: The Hang Seng Tech Index fell over 2%. MINIMAX's decline widened to 7.4%, while XPeng Group and NIO fell over 5%.
09:48: The Shanghai Composite Index fell 1%, led lower by computing hardware and the semiconductor industry chain. Over 3,500 stocks declined.
09:46: Device-side hardware concepts bucked the downtrend, with AI phone and smart glasses sectors leading gains. MIO Convention & Exhibition hit the 20% limit up, following Daoming Optics' two consecutive limit-up sessions. Green Precision rose over 10%, with FURONG Technology, Yidao Information, Qixin Group, and others following suit.
09:41: The power sector saw a sudden surge, with Huayin Power hitting the limit up. Leshan Power, Shennandian A, Hangzhou Thermal Power, and Xichang Power followed higher. On the news front, the National Energy Administration released data on June's total electricity consumption. In June, total electricity consumption reached 898.1 billion kWh, a year-on-year increase of 3.7%. Electricity consumption in the tertiary industry was 186.0 billion kWh, up 5.6% year-on-year. Within that, electricity consumption for battery swapping/charging services and internet data services were 14.8 billion kWh and 9.1 billion kWh, respectively, with growth rates reaching 57.1% and 41.4%.
09:37: The CPO (Co-Packaged Optics) concept fell sharply in early trading, with Dongshan Precision hitting the limit down. Zhongji Innolight, Changguang Huaxin, Yuanjie Technology, and Eoptolink all dropped over 10%.
09:37: The Hang Seng Tech Index's intraday loss widened to 1%.
09:32: Both the ChiNext Index and the STAR 50 Index fell over 2%. Computing hardware, semiconductor chips, and CRO sectors led the declines, with nearly 2,300 stocks falling across the Shanghai, Shenzhen, and Beijing markets.
09:26: The Shanghai Composite Index opened 0.44% lower, and the ChiNext Index opened 1.36% lower. The semiconductor and computing hardware industry chains continued to adjust, with memory, PCB, and CPO sectors leading the drop. Industrial metals, photovoltaics, and commercial aerospace concept stocks weakened. AI application and major consumer stocks strengthened.
09:21: The Hang Seng Index opened 0.06% higher, while the Hang Seng Tech Index opened 0.05% lower. BYD Electronic, Xiaomi Group, Baidu Group, and Bilibili were among the top gainers. KNOWLEDGE ATLAS fell over 12%, and MINIMAX fell over 3%.
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