Market Reverses Sharply in Afternoon Session, Led by Tech Surge

The stock market staged a dramatic turnaround on Tuesday afternoon, reversing earlier losses as technology shares surged. The market had been volatile and declining in the morning, even experiencing a significant plunge at one point. However, led by a strong performance in the tech sector, the major A-share indices executed a deep 'V' shaped reversal shortly after the afternoon session began, around 13:10.

By the close of trading, the Shanghai Composite Index had gained 0.12%, the Shenzhen Component Index rose 0.8%, the ChiNext Index jumped 1.96%, and the STAR Market Composite Index advanced nearly 2%. Overall, 3,018 stocks gained, with 126 hitting their daily upside limit, while 2,365 stocks declined.

The afternoon rebound was primarily driven by strength in technology stocks. Computing hardware shares collectively strengthened, with companies like Liantek Technology, Honghe Technology, and Jinan Guojian reaching their daily limit-up. In related news, Marvell Technology reported first-quarter fiscal 2027 revenue of $2.418 billion, a significant 28% year-over-year increase, and raised its revenue guidance for the current and next fiscal year. The company, which focuses on custom AI chips and optical interconnect technology for AI data centers, reported exceptionally strong growth in AI-related orders. Marvell's better-than-expected results and raised outlook underscore robust and sustained demand in the North American AI optical communication supply chain.

The semiconductor industry chain also saw gains, with companies like Yandong Micro and Hwatsing Technology hitting the daily limit-up, while Hua Hong Semiconductor and SMIC reached new share price highs.

The telecommunications giant Zte Corporation, with a market capitalization in the hundreds of billions, saw its shares surge straight to the daily limit-up in the afternoon. The company announced it had conducted its first repurchase of A-shares through a centralized bidding transaction system on the Shenzhen Stock Exchange. It repurchased 19.259 million A-shares, representing 0.40% of its total share capital. The highest transaction price was RMB 34.98 per share, the lowest was RMB 34.44 per share, and the total amount paid was RMB 670 million (excluding transaction fees).

On the downside, baijiu (Chinese liquor) stocks collectively adjusted, with Jinzhi Liquor falling over 8%.

Overseas, the South Korean stock market also delivered a surprising performance, staging a similar deep 'V' reversal after plummeting as much as 4% during the session, ultimately closing with a slight loss.