On July 30, China's three major A-share indices opened lower collectively and continued to decline in early trading. As of midday close, the Shanghai Composite fell 1.15%, the Shenzhen Component dropped 3.79%, and the ChiNext Index tumbled 5.89%. The STAR 50 index slid 6.34%, while the Beijing Stock Exchange 50 index edged down 0.46%. Across the market, 1,901 stocks advanced, 3,458 declined, and 51 hit the daily upper limit. Total trading volume for the Shanghai, Shenzhen, and Beijing exchanges in the morning session stood at approximately 1.46 trillion yuan, a contraction of about 264 billion yuan from the previous session. In terms of main capital flows, the electronics sector saw net outflows exceeding 252 billion yuan, with Zhongji Innolight experiencing net selling of over 38 billion yuan. Meanwhile, sectors like food and beverage and automobile manufacturing attracted net inflows.
Market Overview
On the upside, the consumer sector continued its strong performance, with segments like baijiu (spirits), food and beverage, and medical aesthetics leading gains. Shede Spirits and Jinhui Liquor hit their daily upper limits, while Jiugui Liquor, Gujing Gongjiu, and Kouzijiao rose over 5%. Wuliangye and Shanxi Fenjiu gained more than 4%, and Kweichow Moutai increased over 2%. The automobile manufacturing and power grid equipment sectors were active during the session, with JAC Motors hitting the daily upper limit. The banking sector bucked the trend, with Industrial and Commercial Bank of China and China Construction Bank both hitting new historical highs.
On the downside, the CPO (Co-Packaged Optics) concept stocks suffered a severe sell-off, with Dongshan Precision Manufacturing, Accelink Technologies, and Cambridge Industries Group hitting their daily lower limits. Eoptolink Technology, Zhongji Innolight, and Tianfu Communication dropped over 10%. The semiconductor supply chain collectively declined, with Tongfu Microelectronics and Rockchip Electronics hitting their daily lower limits, while Hua Hong Semiconductor and Cambricon Technologies fell over 10%. End-side AI concept stocks experienced volatile adjustments.
Overall, significant capital outflows from technology sectors like semiconductors and CPO were redirected into food and beverage and banking stocks, creating a clear structural divergence in the market.
Hot Sectors
Baijiu/Food & Beverage Sector Leads Gains
Multiple stocks in this sector hit their daily upper limits, including Shede Spirits and Jinhui Liquor. Yiming Food achieved a three-day winning streak, while Haixin Foods, Joywell Health, and Xi'an Catering also hit daily limits. Jiugui Liquor, Gujing Gongjiu, and Kouzijiao rose over 5%, Wuliangye and Shanxi Fenjiu gained over 4%, and Kweichow Moutai increased over 2%.
Commentary: According to data from public funds' second-quarter 2026 heavy holdings, the allocation ratio for baijiu and food and beverage sectors has fallen to historical lows. Against the backdrop of continuous adjustments in the tech sector, capital has flowed into undervalued consumer stocks.
AI Application Concepts See Renewed Activity
Stocks in this area fluctuated and rose during the session. Chuanyi Education achieved a four-day winning streak, Puyuan Software and Hengfeng Information hit the 20% daily upper limit, and Zhongke Financial Technology and Nantian Information also hit daily limits. Kaixuan Culture hit its daily upper limit, while Kelan Software rose nearly 7%.
Commentary: The People's Bank of China and eight other departments recently issued a notice on strengthening the development and use of data in the technology finance field. It proposes guiding financial institutions to build digital credit profiles for tech enterprises and develop tech financial products based on a technology finance database. Additionally, data from OpenRouter showed that as of July 26, Chinese models held approximately 63.5% of the global market share over the past 28 days, with the top five in call volume all being Chinese models. Xiaomi's MiMo-V2.5 topped the global monthly ranking for large model call volume.
Power Grid Equipment Sector Rises Against the Trend
This sector bucked the broader market weakness, with Haochuang Ruitong hitting the 20% daily upper limit and Guangdian Electric hitting its daily limit. JinZhi Technology, Kaifa Electric, Haixing Power, and Sanxing Electric also followed the uptrend.
Commentary: According to statistics, State Grid Corporation of China's 2026 investment will exceed 800 billion yuan, an increase of over 15% year-on-year, while China Southern Power Grid's investment will reach nearly 200 billion yuan. The combined annual investment from the two major power grids is on track to surpass the one trillion yuan mark for the first time.
Automobile Manufacturing Sector Extends Rebound
This sector continued its strong performance, with JAC Motors hitting its daily upper limit. BAIC BluePark, Qianli Technology, Seres, Jinlong Automobile, and Changan Automobile also followed the upward trend.
Commentary: According to customs data, China's automobile exports in the first half of 2026 totaled 635.82 billion yuan, a year-on-year increase of 48.3%, with shipments to over 210 countries and regions. Among these, new energy vehicle exports reached 360.68 billion yuan, up 68.7% year-on-year.
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