China's A-share markets opened lower across the board on Tuesday morning, with the three major indices showing early divergence. The Shanghai Composite climbed steadily, while the Shenzhen Component and the ChiNext Index initially fell before paring losses and eventually turning positive during the session. The non-ferrous metals sector exploded higher, with the precious metals segment continuing its upward momentum. Coal and petrochemical stocks also strengthened. Hardware for computing power and semiconductor chips initially dropped, but the semiconductor supply chain later staged a rebound. Meanwhile, sectors such as power, biotech, and maritime shipping experienced adjustments.
Hong Kong's stock market opened lower and extended its decline, with the Hang Seng Index and the Hang Seng Tech Index both falling over 1% in early trading. Most tech stocks retreated, with Tencent, Alibaba, Baidu, and Bilibili leading the losses. Chip stocks also declined. Stocks related to AI large models showed mixed performance, with MINIMAX surging over 10%. In the bond market, government bond futures traded with a downward bias. On the commodities front, China's domestic commodity futures generally rose, with precious metals like Shanghai gold and Shanghai silver recording significant gains.
Key Market Trends:
As of the time of writing, the Shanghai Composite gained 0.40%, the Shenzhen Component rose 0.38%, and the ChiNext Index added 0.25%.
In Hong Kong, the Hang Seng Index fell 1.77% and the Hang Seng Tech Index declined 1.45%.
Government bond futures traded lower, with the 30-year contract down 0.02%, the 10-year contract down 0.02%, while the 5-year and 2-year contracts were flat.
On the commodities front, China's domestic commodity futures saw broad gains. Shanghai gold surged over 4%, Shanghai silver rose 3%, and alumina and palladium increased 2%. Other gainers included platinum, iron ore, fuel oil, polysilicon, eggs, coke, Shanghai tin, silicon manganese, coking coal, industrial silicon, rebar, soybean meal, pulp, Shanghai copper, Shanghai aluminum, hot-rolled coils, caustic soda, crude oil, asphalt, lithium carbonate, Shanghai nickel, and rubber. In contrast, a few items like glass, rapeseed, stainless steel, and the container shipping index declined.
At 10:26 AM, all three major indices turned positive, recovering from an initial drop of over 2.5% for the ChiNext Index. Precious metals, computing hardware, and semiconductor chips led the gains.
At 09:46 AM, the PCB (Printed Circuit Board) concept rebounded in early trading. Jingwang Electronics hit the daily limit up, while Baoding Technology, Founder Technology, Zhongjing Electronics, Weiergao, Shengyi Technology, and Jin'anguoji also rose.
The coal sector was active, with Haohua Energy hitting its daily limit high. Jinkong Coal Industry, Lu'an Environmental Energy, Yankuang Energy, and Pingmei Co. followed suit. This was supported by news that the CCI (China Coal Index) for thermal coal was raised across the board on August 5th, with the 5500 kcal grade rising by 5 yuan/tonne to 839 yuan/tonne, the 5000 kcal grade rising by 5 yuan/tonne to 750 yuan/tonne, and the 4500 kcal grade rising by 6 yuan/tonne to 661 yuan/tonne.
At 09:37 AM, the ChiNext Index fell over 2%, the Shanghai Composite dropped 0.24%, and the Shenzhen Component decreased 1.28%. Education, MLCCs, consumer electronics, and semiconductors were among the sectors leading the decline. Nearly 3,300 stocks were falling across the Shanghai, Shenzhen, and Beijing exchanges.
At 09:26 AM, the Shanghai Composite opened 0.36% lower, and the ChiNext Index fell 1.78%. CPO, semiconductor equipment, AI computing power, space-based solar, AI applications, PCB, super-hard materials, and commercial aerospace concept stocks weakened. Meanwhile, gold, industrial metals, CRO, and lithium battery themes were active.
At 09:21 AM, the Hang Seng Index opened 0.96% lower, and the Hang Seng Tech Index fell 0.99%. Hua Hong Semiconductor fell over 3%, Zhipu dropped nearly 3%, and Semiconductor Manufacturing International Corporation (SMIC), Lenovo Group, NIO, and Baidu all declined over 2%.
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