Persistent geopolitical tensions, significant declines in Japanese and South Korean stock markets, and an overnight sell-off in U.S. tech stocks have put pressure on A-shares and Hong Kong stocks across the board, with sectors like non-ferrous metals and computing hardware undergoing a collective adjustment.
On June 10th, A-shares experienced a volatile decline, with the three major indices falling collectively at the market open. The ChiNext Index dropped 2%, while concepts like servers and the semiconductor industry chain showed activity. Sectors such as banking and catering & tourism saw gains. Concepts including optical communications and high-speed copper connections underwent widespread adjustment, following a sharp overnight decline in the U.S. optical communications sector. Non-ferrous metals continued their recent downward trend.
Hong Kong stocks opened lower and continued to decline, with both the Hang Seng Index and the Hang Seng Tech Index moving downwards. The Hang Seng Tech Index fell over 1%, with most technology and internet stocks declining. NetEase, Inc. bucked the trend, rising over 4%, while AI large model stocks also fell, with Zhipu AI dropping over 8%. In the bond market, treasury futures collectively rose. In commodities, domestic commodity futures diverged, with metal futures like Shanghai Silver falling sharply. Key market movements:
A-shares: As of writing, the Shanghai Composite Index fell 0.65%, the Shenzhen Component Index dropped 2.12%, and the ChiNext Index declined 2.64%.
Hong Kong Stocks: As of writing, the Hang Seng Index fell 0.91%, and the Hang Seng Tech Index dropped 1.43%.
Bond Market: Treasury futures fell across the board. As of writing, the 30-year main contract rose 0.13%, the 10-year main contract rose 0.01%, the 5-year main contract rose 0.01%, and the 2-year main contract was flat.
Commodities: Domestic commodity futures diverged. As of writing, the Containerized Freight Index rose 3%, industrial silicon rose 2%, while alumina, caustic soda, eggs, lithium carbonate, and others rose over 1%. Manganese silicon, pulp, asphalt, iron ore, rebar, coke, and hot-rolled coil were higher. Shanghai copper, polysilicon, Shanghai aluminum, stainless steel, coking coal, rubber, crude oil, Shanghai tin, fuel oil, Shanghai nickel, and others fell over 1%. Rapeseed and Shanghai gold fell over 2%, while Shanghai silver and platinum plunged 5%.
10:34 Market Snapshot
The Shenzhen Component Index and ChiNext Index both fell over 2%, while the Shanghai Composite Index declined 0.6%. Sectors like precious metals, computing hardware, and power grids led the losses, with over 4,400 stocks declining across the Shanghai, Shenzhen, and Beijing markets.
The Hong Kong Hang Seng Index fell 1.1%, and the Hang Seng Tech Index dropped 1.5%. Zhipu AI fell over 7%, while NIO Inc. and Lenovo Group dropped over 6%.
10:16 Banking Sector Gains
The banking sector rose against the market trend. China Construction Bank rose nearly 2%, continuing to hit a new historical high, with its total A+H share market capitalization reaching 2.04 trillion yuan. Qingdao Bank rose over 3%, with Agricultural Bank of China, China CITIC Bank, Bank of China, Industrial and Commercial Bank of China, and others following the upward movement.
10:00 Gas Turbine Concept Weakens
The gas turbine concept fluctuated and declined during the session. Wanze Co., Ltd. hit the daily limit-down, following Jereh Group which earlier touched the limit-down. Weichai Power Co., Ltd., China Shipbuilding Industry Group Power Co., Ltd., Yingliu Co., Ltd., and Dongfang Electric Corporation followed the decline.
09:51 Advanced Packaging Rises
The advanced packaging concept rose against the trend in early trading. Qipai Technology and Kangqiang Electronics hit the daily limit-up, while Jintuo Co., Ltd. rose over 10%. Huahai Chengke, Hongshida, Debon Technology, Weice Technology, and others followed the gains.
On the news front, MediaTek Inc. announced that its next-generation chips will exclusively use Intel's EMIB-T advanced packaging technology, abandoning TSMC's CoWoS solution.
09:44 CPU Concept Strengthens
The CPU concept fluctuated and strengthened. Hygon Information Technology Co., Ltd. rose over 11%, with China Great Wall Technology Group Co., Ltd., Loongson Technology Corporation Ltd., and Montage Technology Co., Ltd. following the gains.
On the news front, during the Computex 2026 exhibition, Chen Baoli, Vice President of Intel's Data Center Group and General Manager of China, stated that a leading domestic large model manufacturer has increased its CPU demand by five times from last year to this year.
09:31 ChiNext Index Falls Over 2%
The ChiNext Index fell over 2%.
09:26 Market Opens Lower
The Shanghai Composite Index opened 0.62% lower, while the ChiNext Index fell 1.62%. Sectors including CPO, photovoltaics, gold, memory, industrial metals, super-hard materials, semiconductors, humanoid robots, and AI application concept stocks weakened. Nearly 4,400 stocks declined in the market.
09:21 Hong Kong Market Opens Lower
The Hang Seng Index opened 0.5% lower, and the Hang Seng Tech Index fell 0.38%. NIO Inc. fell nearly 4%, Lenovo Group dropped over 2%, with BYD Company Limited, Huahong Grace Semiconductor Manufacturing Corporation, and Semiconductor Manufacturing International Corporation among the top decliners.
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