On June 9, 2026, the A-share market staged a robust rally, with the Shanghai Composite Index gaining over 1% to reclaim the 4,000-point level, while the ChiNext Index surged nearly 4%, led by the semiconductor and computing hardware supply chain.
Specifically, the Shanghai Composite Index closed up 1.28% at 4,010.03 points, the Shenzhen Component Index rose 3.02%, the ChiNext Index jumped 3.93%, the CSI 300 Index advanced 1.87%, the SSE STAR Market 50 Index climbed 4.17%, and the CSI A500 Index increased 2.15%.
Key Market Drivers
We believe the primary factors influencing today's market are as follows:
First, stronger-than-expected May export data, coupled with positive news regarding cooperation with leading overseas chip companies, boosted market sentiment, leading to a strong rebound in the previously underperforming technology sector.
On the news front, Intel (NASDAQ: INTC) shares rose more than 10% in pre-market trading on June 8, and Google placed an order with Intel for over 3 million Tensor Processing Units (TPUs).
Additionally, NVIDIA is evaluating Intel's advanced packaging technology and 18A process for future chip production.
Simultaneously, data released by China's General Administration of Customs on June 9 showed that China's export growth remained strong in May.
Driven by the sustained high demand in AI, supportive energy cost advantages, and a recovery in exports to the United States, China's export growth rate in May 2026 rebounded to +19.4% year-on-year, lifting market sentiment.
Sector Performance Highlights
Second, strong demand for fiberglass fabric driven by high AI sector activity, alongside a report by China Central Television (CCTV) on price increases for electronic-grade fabric, contributed to the strong performance of the fiberglass sector today.
According to a recent report by CCTV Finance, by early June, commonly used specifications of electronic-grade fabric had undergone five rounds of price increases this year, with the average price reaching 7.4 yuan per meter, representing a 100% increase from the low point in the third quarter of last year.
If electronic yarn supply remains tight, even with sufficient weaving capacity, electronic fabric is expected to remain in short supply, supporting a continued positive price trend.
The previous high for standard 7628 electronic fabric occurred in August 2021, corresponding to a price of approximately 8.75 yuan per meter. The current price is only about 18% below that previous peak.
We believe the current supply-demand dynamics may only reflect the beginning of the AI-driven industrial transformation.
Market Outlook and Positioning
Looking ahead, as we previously analyzed, we expect the market to likely remain volatile in the short term.
Fundamentally, concerns about liquidity remain difficult to dispel as there has been no substantial progress regarding the reopening of the Strait of Hormuz or U.S.-Iran negotiations.
U.S. inflation data, policy meetings of the European Central Bank, Bank of Japan, and the U.S. Federal Reserve could continue to unsettle the market over the coming two weeks.
Furthermore, historical patterns suggest that after the Philadelphia Semiconductor Index has experienced a single-day decline exceeding 10%, its average trajectory involves an oversold rebound, followed by a secondary test of lows, and then a recovery phase.
Medium-Term View and Strategy
However, from a medium-term perspective, we maintain our previously positive view on the market, believing the current shift represents a style rebalancing rather than a full reversal, with a clearer trend potentially emerging in late June.
The underlying investment logic for the AI industry remains intact, capital expenditures are still accelerating, and the K-shaped economic divergence is unlikely to change materially in the second half of the year.
Regarding portfolio positioning, it may be prudent to actively reduce volatility exposure structurally, favor large-cap stocks in terms of style, and maintain a diversified sector allocation, focusing on AI hardware, new energy, industrial metals, chemicals, and insurance.
Risk Disclosure
Short-term index performance and historical data are for analytical reference only and do not predict future performance. The views expressed are for reference only and may change due to market factors; they do not constitute investment advice or a commitment. Funds carry risks; investing requires caution.
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