On February 3, after an initial surge and retreat in the morning session, the A-share market experienced another volatile upward swing. The three major indices dipped into negative territory intraday, with the ChiNext Index having surged over 2% earlier; by the midday close, all three indices had collectively turned positive. The combined half-day turnover for the Shanghai and Shenzhen markets reached 1.6 trillion yuan, shrinking by 400 billion yuan compared to the previous session, while over 4,400 individual stocks advanced across the broader market.
Specific sectors showed robust performance, with the commercial aerospace concept leading the gains. Harbin Airconditioning and Aerospace Hi-tech Development hit the upper limit, following earlier limit-up surges in Juli Sling, Tongyu Communication, Wogen Photoelectric, and Runben Aviation Technology, among over ten other stocks. Catalyzing the move, SpaceX published a statement on its official website signed by Elon Musk, confirming a merger with the artificial intelligence firm xAI. Reports indicate the post-merger company is expected to be priced at approximately $527 per share, achieving a valuation of $1.25 trillion. The photovoltaic concept continued its strong upward trajectory, with Shuangliang Energy Saving and Autowell hitting the upper limit. The chemical sector also saw a pull-up, with Hongbaoli Group securing two limit-ups in three days and Wanfeng Noted achieving four consecutive limit-ups. In contrast, gold concept stocks extended their decline, with Sichuan Gold and Zhaojin Gold, among others, falling by the daily limit. Focusing on notable individual stocks, domestic AI chip leader Cambricon Technologies Corporation Limited saw a significant intraday plunge that attracted market attention. By the midday close, Cambricon was trading at 1,082 yuan per share, down nearly 13%, with its total market capitalization concurrently retreating to approximately 450 billion yuan.
This sharp price movement is likely attributable to signals of weaker-than-expected quarterly performance revealed in the company's recently disclosed 2025 earnings forecast. On the evening of January 30, Cambricon formally released its 2025 annual earnings preview, which indicated substantial growth in full-year operational data overall. However, calculations based on the company's already disclosed third-quarter 2025 report suggest a deceleration in quarterly growth momentum. Cambricon reported net profit attributable to shareholders of 16.05 billion yuan for the first three quarters of 2025; based on this, the company's estimated net profit for the fourth quarter of 2025 falls within a range of 2.45 billion to 5.45 billion yuan. This represents a quarter-on-quarter decline of 3% to 56% compared to the 5.67 billion yuan profit in the previous quarter, indicating a noticeable contraction in single-quarter profitability. From a market perspective, the consensus analyst forecast for Cambricon's Q4 2025 net profit was 6.13 billion yuan, placing the company's forecast range below market expectations. Turning to the Hong Kong market, the Hang Seng Tech Index fell over 3% intraday. As of the latest update, popular constituent stocks were under pressure: Baidu Group dropped over 4%, Tencent Holdings declined nearly 4%, Alibaba fell over 2%, Meituan dipped nearly 2%, and JD.com decreased nearly 1%. Some analysis suggests this weakness may be linked to an overall sluggish market environment recently, where reduced risk appetite has triggered a collective downturn in technology and internet stocks. Furthermore, regarding Tencent specifically, the company is expected to announce its annual report on March 18, placing it in a share buyback quiet period starting January 18. Consequently, Tencent paused its buybacks beginning January 16. The company's sustained share repurchases have historically been a key support for its stock price. The recent suspension of this activity has temporarily removed a significant source of buying pressure, which, combined with increased selling pressure in the broader market, has contributed to the short-term decline in its share price. Regarding the short-term volatility of the Hang Seng Tech Index, institutions advise maintaining a calm perspective. For the medium term, driven by typical "spring躁动" seasonal factors, there exists potential for a phased recovery. However, if a new Federal Reserve Chair, potentially adopting a hawkish stance, implements corresponding policies, market performance is more likely to be characterized by volatile increases and deepening structural divergence rather than a clear unilateral trending market.
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