Technology stocks, particularly in AI hardware and semiconductors, are rallying once again, propelling the ChiNext Index to a fresh all-time high. This follows similar record highs in Japanese and South Korean markets, which were also led by heavyweight tech shares, with SK Hynix surging 3.45% to a new peak.
On June 18th, A-shares showed volatile strength, with the three major indices collectively rising in early trading. The ChiNext Index surged over 2%, setting another historical record. Sectors like non-ferrous metals, AI hardware, and chips/semiconductors continued their strong performance, with concepts including rare earths, copper, optical modules, and semiconductor equipment seeing gains. Meanwhile, chemical and oil & gas sectors underwent adjustments.
The Hong Kong market remained weak, with both the Hang Seng Index and the Hang Seng Tech Index falling more than 1%. Technology and internet stocks were broadly lower, though semiconductors showed resilience against the trend, with Huahong Hongli rising 2%. AI large model stocks experienced another surge, with Zhipu soaring nearly 15%. In the bond market, treasury futures mostly rose. In commodities, domestic commodity futures saw widespread declines. Key market movements:
A-Shares: At the time of writing, the Shanghai Composite Index was up 0.09%, the Shenzhen Component Index up 1.03%, and the ChiNext Index up 1.77%.
Hong Kong Shares: At the time of writing, the Hang Seng Index was down 1.37%, and the Hang Seng Tech Index was down 1.36%.
Bond Market: Treasury futures were mostly higher. At the time of writing, the 30-year main contract was down 0.04%, the 10-year main contract was up 0.04%, the 5-year main contract was up 0.03%, and the 2-year main contract was up 0.02%.
Commodities: Domestic commodity futures were broadly lower. At the time of writing, only a few varieties like silicon-based index, polysilicon, and alumina were higher. Nickel, ferromanganese, aluminum, gold, pulp, copper, soybean meal, eggs, rapeseed, crude oil, industrial silicon, silver, stainless steel, and hot-rolled coil all declined. Rebar, asphalt, glass, tin, rubber, iron ore, and caustic soda fell over 1%, while platinum, palladium, lithium carbonate, fuel oil, and coke dropped more than 2%, with coking coal plunging over 5%.
Market Moves in Focus
09:55 - The steel sector saw a sudden intraday surge. Fushun Special Steel hit the limit-up, Shengde Xintai rose over 10%, with Benxi Steel Plates, Xining Special Steel, Shagang Group Co., Ltd., and Jiuli Hi-Tech Metals Co., Ltd. following higher. Reports indicate China's shipbuilding industry is experiencing an unprecedented boom, with core production areas like Nantong, Jiangsu having order books filled until 2030. Additionally, demand for ultra-thin steel plates for car carriers is growing rapidly alongside the surge in auto exports. Domestic steel companies have ship steel orders scheduled until 2028, with total output this year expected to exceed 2 million tons.
09:47 - Losses in Hong Kong shares widened. The Hang Seng Index fell 1.3%, and the Hang Seng Tech Index fell 1.4%. Zhipu bucked the trend, rising over 7%.
09:42 - The non-ferrous/copper concept saw volatile gains in early trading. Jiangxi Copper hit the limit-up, with Yunnan Copper, Northern Copper, Western Mining, Tongling Nonferrous Metals Group, and China Molybdenum following higher. Analysts at Jefferies, led by Christopher LaFemina, significantly raised their 2030 copper price target to $8 per pound, equivalent to $17,636 per ton, in a note to clients.
09:39 - Semiconductor equipment stocks rose in early trading. Jingsheng touched the 20% limit-up, with Yitang, Hengyunchang, Jinhaitong, ACM Research (Shanghai), Inc., and Huaya Intelligent following the upward move.
09:38 - The ChiNext Index rose nearly 2% to a record high, with semiconductors and the computing power hardware industry chain remaining active.
09:26 - The Shanghai Composite Index opened 0.34% lower, and the ChiNext Index opened 0.32% lower. Glass fiber, lithium mining, photovoltaics, stablecoins, commercial aerospace, memory, and semiconductor concept stocks led the declines, while ultra-hard materials, GPU, and humanoid robot themes gained strength.
09:21 - The Hang Seng Index opened 0.69% lower, and the Hang Seng Tech Index opened 0.88% lower. Pop Mart fell over 3%, while NetEase, Inc. and Zijin Mining Group dropped over 2%. MINIMAX and Zhipu bucked the trend, rising over 3%.
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