A-shares closed higher on September 21, with all three major indices posting gains. The Shanghai Composite opened firm and advanced steadily, while the ChiNext Index traded in a narrow range after its initial rise, with over 4,500 stocks advancing across the market.
By the close, the Shanghai Composite rose 0.97% to 3,949.91 points, the Shenzhen Component Index climbed 0.65% to 13,730.02 points, the ChiNext Index gained 0.80% to 3,399.59 points, the STAR 50 advanced 0.29% to 1,657.48 points, and the Beijing Stock Exchange 50 index surged 1.33% to 1,058.18 points. Combined turnover on the Shanghai and Shenzhen exchanges reached approximately 2.03 trillion yuan, down about 45.6 billion yuan from the previous session. Market breadth was strongly positive, with 4,536 stocks advancing, 936 declining, and 93 flat, while 106 hit daily limit-up and 3 hit limit-down, translating to an advance ratio of roughly 81%.
Leading the gains were medical services, chemical pharmaceuticals, CRO, real estate services, and yellow rice wine concepts, alongside notable strength in pension-related themes. On the flip side, precious metals and home appliance sectors were among the laggards.
Key drivers
The three major indices rose in tandem, with the Shanghai Composite up 0.97%, the Shenzhen Component Index up 0.65%, and the ChiNext Index up 0.80%. The Beijing Stock Exchange 50 led the way with a 1.33% advance, while the STAR 50 lagged slightly at 0.29%. Trading volume stayed above the 2-trillion-yuan threshold at around 2.03 trillion yuan, though it shrank by roughly 45.6 billion yuan from the prior day. With 4,536 stocks gaining against 936 decliners, and 106 hitting limit-up versus just 3 at limit-down, the wealth effect was pronounced across the market.
The pharmaceutical sector staged a broad rally, with medical services, chemical drugs, and CRO names leading the charge. This surge followed the joint issuance on September 18 of the "15th Five-Year Plan for the Development of the Pharmaceutical Industry" by ten government departments, including the Ministry of Industry and Information Technology.
Real estate stocks strengthened sharply in the afternoon session, with multiple names such as China Vanke Co., Ltd. (SZ: 000002), Greenland Holdings, and WorldUnion hitting limit-up. The catalyst was the State Council Information Office press conference on September 18, where the Ministry of Housing and Urban-Rural Development noted that second-hand home transactions accounted for 52% of total sales in the first eight months of the year, signaling the market's shift into a stock-dominated era. The ministry also pledged to advance three foundational systems: project company, lead bank, and presale-based delivery. Additionally, the newly revised "Housing Provident Fund Management Regulations" took effect on September 20.
Sector highlights
1. Pharmaceuticals: The pharma sector erupted with strength, topping the gainers list. Near-protein and Novogene surged 20% to limit-up, Huaren Pharmaceutical also hit the 20% ceiling, Nanhua Bio-Medical extended its streak to three consecutive limit-ups, and Baihua Pharmaceutical recorded three limit-ups in two days. Sinopharm Xinhua and HAPC also closed at limit-up. The rally was fueled by the aforementioned ten-department plan, which targets an average annual growth rate of over 20% for the innovative drug industry by 2030.
2. Real Estate: The real estate sector accelerated in the afternoon, with China Vanke, Greenland Holdings, WorldUnion, Huafa Industrial, and 5i5j all closing at limit-up. The momentum came from the housing ministry's comments about the stock-driven market, coupled with the September 20 implementation of the revised housing provident fund rules, as well as plans to institutionalize project-based and lead-bank financing models alongside a shift to presale-free delivery.
3. Financials and Consumption: Large financials picked up in the afternoon, with Nanhua Futures and Huajin Capital hitting limit-up. Pension-related concepts were active, with OGAWA Health and Aoyang Health at limit-up. Yellow rice wine names rallied, with Kuaijishan hitting limit-up, while the baijiu sector was broadly flat except for Huangtai Liquor's limit-up.
Lagging sectors
Precious metals and home appliances led the declines. In precious metals, Shanjin International fell 3.49% and Chifeng Gold dropped 2.94%. Home appliance names also retreated. Within the lithography machine concept, Tengjing Technology declined 4.70% and Lante Optics fell 4.16%, though the sector's benchmark index closed roughly flat on the day.
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