A-share market close: ChiNext Index drops 1.62%, slipping below 2,700 points, while data factor stocks buck the trend.
On October 21, the three major A-share indices opened higher collectively before pulling back from their highs and then oscillating downward in the afternoon, with the ChiNext Index losing the 2,700-point mark and hitting a new low since August 25, 2025.
At the close, the Shanghai Composite fell 0.60% to 3,713.03, the Shenzhen Component dropped 0.82% to 11,704.35, the ChiNext Index declined 1.62% to 2,694.71, the STAR 50 edged up 0.06% to 1,343.28, and the BSE 50 slipped 0.72% to 975.78.
Combined turnover across the Shanghai and Shenzhen markets reached 1.429344 trillion yuan, shrinking by 26.768 billion yuan from the previous trading day.
Among Shanghai and Shenzhen A-shares, 1,981 stocks advanced, 3,364 declined, and 231 were flat, with 50 hitting the daily limit up and 5 hitting the limit down, meaning advancing stocks accounted for about 35%.
Sector-wise, breeding, television and radio broadcasting, fishery, publishing, IT services, and components were among the top gainers, while batteries, coal mining, baijiu, energy metals, gaming, and securities were among the biggest decliners.
Regarding driving factors, on October 20 China Data Group Co., Ltd. was unveiled in Xiong'an New Area, Hebei, and the State-owned Assets Supervision and Administration Commission (SASAC) announced the same day that the group was established with State Council approval and listed as the 28th central state-owned enterprise, increasing SASAC-supervised central SOEs from 99 to 100.
Today, the IT services, television and radio broadcasting, and publishing sectors rose 1.69%, 2.47%, and 1.81%, respectively.
National Bureau of Statistics data showed that by the end of the third quarter, the national breeding sow herd stood at 36.02 million head, down 1.78 million head month-on-month, a decline of 4.7%, notably steeper than the 1.4% drop in the first quarter and the 3.2% drop in the second quarter, and the breeding sector led Shenwan secondary industries with a gain of 2.97%.
CATL disclosed its third-quarter report on the evening of October 20, showing third-quarter net profit attributable to shareholders of 21.246 billion yuan, up 14.54% year-on-year but down 5.77% quarter-on-quarter.
Citi cut its A-share target price from 500 yuan to 479 yuan, and JPMorgan downgraded its H-share rating to "neutral"; the stock closed down 12.03% that day, the battery sector fell 7.56%, and the electrical equipment industry slid 3.67%, both marking the largest declines at their respective levels for the day.
Volcano Engine launched the Seedance premium AI drama incentive plan on October 19, offering monthly incentives of 50,000 to 200,000 yuan per work to AI comic dramas listed on the Hongguo short drama app based on Hongguo popularity rankings, and the AI comic drama theme was active repeatedly during the day.
In overseas markets, South Korea's KOSPI closed up 3.29%, SK Hynix rose 5.8%, and Samsung Electronics gained 5.67%, while Japan's Nikkei 225 rose 0.85%; A-shares' electronics sector rose 0.79% and the semiconductor sector added 0.29%.
Among hot sectors: 1. Data factors: the landing of China Data Group in Xiong'an boosted the sector against the broader market trend.
Nanwei Software and Xingguang Co. both recorded three limit-ups in four days, Mass Data and Taiji Computer hit the daily limit up, and Sanwei Tiandi rose 20% to the limit up.
On the catalyst side, China Data Group Co., Ltd. was established in Xiong'an New Area, Hebei, on October 20, with its main business being the development and utilization of data resources, filling the gap for a state-owned capital entity in the data field.
2. Breeding: the pace of breeding sow destocking accelerated, and the sector posted the top gain among Shenwan secondary industries.
Dongrui Co. hit the limit up, Tiankang Biology rose 5.87%, Shennong Group gained 5.65%, and Juxing Agriculture and Animal Husbandry added 5.03%.
On the catalyst side, National Bureau of Statistics data showed that by the end of the third quarter, live pig inventory fell 2.6% year-on-year, turning negative for the first time since 2025, while the breeding sow herd stood at 36.02 million head, down 4.7% month-on-month, a larger decline than in the first and second quarters.
3. AI comic dramas: the implementation of Volcano Engine's incentive plan kept the concept active repeatedly.
Yue Media posted a second consecutive limit-up, and Wentou Holdings hit the limit up.
On the catalyst side, Volcano Engine launched the Seedance premium AI drama incentive plan on October 19, under which qualifying works are divided into three tiers based on monthly Hongguo popularity rankings, with up to 200,000 yuan in incentives per work.
The media direction diverged internally during the day, with the digital media sector edging up 0.49%, while film and cinema lines and the gaming sector fell 0.04% and 1.59%, respectively.
Among adjusting sectors, the battery sector fell 7.56%, the biggest drop among Shenwan secondary industries for the day, with CATL down 12.03% to 227.90 yuan, more than 50% below its historical high on May 7, 2026; Shidai Wanheng and Shanghai Xiba hit the limit down, Weilan Lithium Core fell 9.25%, Zizhu Hi-Tech dropped 9.03%, and Lead Intelligent declined 9.00%; the electrical equipment industry fell 3.67%, ranking last among Shenwan primary industries.
The corresponding verifiable news was that CATL's third-quarter report disclosed on the evening of October 20 showed a 5.77% quarter-on-quarter decline in third-quarter net profit, along with Citi's cut to its A-share target price and JPMorgan's downgrade of its H-share rating.
Coal mining and baijiu sectors fell 2.00% and 1.88%, respectively, with Shanmei International down 2.65%, Shanxi Fenjiu down 5.73%, and Gujing Distillery down 3.59%.
The securities sector fell 1.09%, with Jinlong Co. hitting the limit down and Xiangcai Co. down 3.42%.
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