In early trading on July 7th, the four major A-share indices showed mixed performance. By the midday break, the Shanghai Composite Index had fallen 1.04%, the Shenzhen Component Index was down 1.02%, the ChiNext Index had declined 0.78%, while the STAR Market Composite Index rose 0.23%. The total market turnover was 164.18 billion yuan, a decrease of 57.98 billion yuan from the previous session, with over 4,700 individual stocks trading lower.
Key Sector Movements
In terms of sectors, concepts such as semiconductor silicon wafers, GPUs, lab-grown diamonds, gaming, construction machinery, and leisure goods were among the top gainers. Sectors including petrochemicals, chemical fibers, power generation equipment, shipping, and pharmaceuticals were among the biggest decliners.
Semiconductor silicon wafer stocks collectively strengthened, with Youyan Silicon hitting the 20% daily limit up. Shanghai Hejing rose over 10%, TCL Zhonghuan Renewable Energy Technology Co.,Ltd. (002129) reached the daily limit up, and National Silicon Industry Group Co.,Ltd. (688126) gained more than 7%. Stocks like Zhongjing Technology and Li Ang Micro also followed the upward trend.
Catalysts for the Silicon Wafer Sector
The move follows recent price hike announcements from three major global silicon wafer leaders—Shin-Etsu Chemical, SUMCO, and GlobalWafers—marking the industry's second round of price increases this year. Prices for standard 12-inch wafers rose 5% to 8%, while high-end wafers for AI/HPC applications saw increases of 18% to 22%. The cumulative price increase from the two rounds this year exceeds 15%, indicating a sustained upward pricing trend. Heavily doped wafers, primarily used in power devices, are benefiting from surging demand from AI server power supplies and new energy vehicles, leading to a more rigid supply-demand gap and potentially higher pricing elasticity compared to lightly doped wafers. On the supply side, expansion plans from overseas leaders like Shin-Etsu and GlobalWafers in recent years have focused on advanced process wafers, limiting supply growth for mature process wafers and further supporting the overall price increase.
Gaming Sector Shows Activity
The gaming sector was also active, with Rastar Group (300043) rising over 10%, followed by gains in Giant Network Group and Glacier Network.
This activity comes after the National Press and Publication Administration released approval information for domestic online games in June 2026. A total of 163 domestic online games and 8 imported online games received licenses last month, bringing the June total to 171, an increase from 158 in the previous month.
Fiber Optic Concept Stock Extends Losses
Fiber optic concept stocks continued to adjust, with Hangzhou Cable Co.,Ltd. (603618) hitting the daily limit down for a second consecutive day following its earnings forecast release.
On the evening of July 3rd, Hangzhou Cable announced that it expects its net profit attributable to shareholders for the first half of 2026 to be between 360 million and 400 million yuan, representing a year-on-year increase of 852% to 958%. It also expects its non-GAAP net profit to be between approximately 355 million and 395 million yuan, a surge of 1,087.67% to 1,221.49%. The company's stock price had risen over 500% in the first half of this year.
Market Outlook and Sentiment
With the peak period for interim earnings forecasts approaching, the market's pricing logic is shifting entirely towards profit verification. This is putting pressure on the valuations of purely thematic stocks. Coupled with ongoing fluctuations in overseas liquidity expectations and the incomplete digestion of high valuations in leading tech themes, market sentiment remains cautious. In the short term, the market is likely to continue experiencing low-volume fluctuations and structural divergence.
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