On June 24, China's A-share market opened lower but closed higher for the day. At the close, the Shanghai Composite Index gained 0.11%, the Shenzhen Component Index rose 1.24%, the ChiNext Index advanced 1.41%, and the STAR 50 Index surged 3.82% to a record high. A significant divergence was observed between the yellow and white lines of the indices, with small and micro-cap stocks experiencing substantial pullbacks. Over 4,000 stocks declined across the market. The combined turnover for the Shanghai and Shenzhen exchanges was 3.28 trillion yuan, a decrease of 156.4 billion yuan from the previous session.
Key Market Movers
The market once again witnessed extreme sector divergence, with major funds flowing back into technology stocks. The semiconductor industry chain surged again, led by advanced packaging and memory chip segments. Stocks like Gigadevice Semiconductor Inc., Jcet Group Co.,Ltd., Yake Technology, and Wuxi Taiji Industry Limited Corporation hit their daily limit-up. The PCB concept saw a full-line rally, with stocks such as Mankun Technology and Sinoma Science & Technology Co.,Ltd. reaching their limit-up. The innovative drug concept continued its rebound, with Pharmaron, Qianhong Bio-pharma, and Hainan Haiyao Co.,Ltd. hitting limit-up. The lithium mining concept staged a collective rebound, with stocks like Chengxin Lithium Group Co.,Ltd., Yongshan Lithium Industry, and Rongjie Co.,Ltd. rising by the daily limit.
On the downside, the so-called 'old economy' sectors faced renewed selling pressure. The large financial sector declined across the board. The real estate industry chain moved lower. Consumer-related concepts including tourism, duty-free shops, hotels & catering, retail, and baijiu (white liquor) all trended downward. Power stocks continued their decline. Cyclical sectors like coal, steel, and the oil & gas industry chain remained weak.
Notable Stock Activity
Among focus stocks, the new A-share 'stock king', Lianxun Instruments, saw its intraday price rise to a high of 2,628 yuan per share, setting another historical record. The company listed on the STAR Market on April 24 this year with an IPO price of 81.88 yuan. As of now, its stock price has skyrocketed over 3,000% in just two months since listing. Additionally, the STAR Market newcomer Zhenbao Technology surged over 1,200% today, generating a paper profit exceeding 260,000 yuan per lot. The company focuses on providing components for vacuum chambers in manufacturing equipment and surface treatment solutions for customers in the integrated circuit and display panel industries. Its main products include equipment parts made of silicon, quartz, silicon carbide, and alumina ceramics, along with surface treatment services like thermal spraying regeneration, anodizing, and precision cleaning.
Sector Analysis and Commentary
Semiconductor Surge
The semiconductor industry chain surged again, led by advanced packaging and memory chips. Gigadevice Semiconductor Inc., Jcet Group Co.,Ltd., Yake Technology, and Wuxi Taiji Industry Limited Corporation hit limit-up. Commentary: Guojin Securities noted that the explosive growth in Token calls has created massive, inelastic demand for computing power, significantly benefiting the large-scale adoption of domestic chips. ByteDance's earlier negotiations to purchase domestic GPUs and incorporate them into its core supply chain is a key signal that domestic chip products have gained validation from leading internet giants through real business applications. The dual tailwinds of surging large model traffic and the adoption of domestic computing power continue to raise the ceiling for the commercial growth of domestic chips.
PCB Concept Rally
The PCB concept saw a full-line rally, with stocks like Mankun Technology and Sinoma Science & Technology Co.,Ltd. hitting limit-up. Commentary: The price increase of upstream raw materials such as electronic cloth and electronic resin has driven up the price of copper-clad laminates, with smooth transmission through the industry chain. Institutions point out that Kingboard Laminates announced a 15% price hike for all thicknesses of FR-4 copper-clad laminates and PP prepregs on June 16, while the price of 7628 electronic cloth has risen over 70% since the beginning of the year.
Innovative Drug Strength
The innovative drug concept continued its rebound, with Pharmaron, Qianhong Bio-pharma, and Hainan Haiyao Co.,Ltd. hitting limit-up. Commentary: On June 23, the Drug Procurement Office issued the 'Announcement for the 12th Batch of National Organized Drug Centralized Volume-Based Procurement', officially launching the work for this batch. A total of 65 varieties are included, covering multiple therapeutic areas such as dermatology, gastroenterology & metabolism, and cardiovascular diseases.
Lithium Mining Rebound
The lithium mining concept staged a collective rebound, with stocks like Chengxin Lithium Group Co.,Ltd., Yongshan Lithium Industry, and Rongjie Co.,Ltd. rising by the daily limit. Interpretation: Globally, due to increased battery capacity per vehicle, CITIC Futures has raised its 2026 global power battery production forecast to 2008 GWh, a year-on-year increase of 29%, corresponding to a lithium carbonate demand of approximately 1.33 million tons.
Brokerage Perspectives on the Market Outlook
Tianfu Securities: Tech Trend Intact but Faces Profit-Taking and External Disturbances
Tianfu Securities views yesterday's market plunge as a short-term adjustment due to external disturbances and internal structural crowding. The focus today is on how the overnight U.S. market performance might disturb Asia-Pacific and A-share tech sectors. Strategically, with the June month-end approaching, liquidity is key. It is advisable to control position sizes and pay attention to the sustainability of defensive sectors, which show rotation tendencies internally. Opportunities for repeated activity in the brokerage sector can be noted. The medium-term trend for the technology direction remains unchanged, but short-term challenges include profit-taking and external market influences. It is crucial to watch that the sector's technical levels do not break down. Investors can wait for sufficient pullbacks before focusing on分批低吸 (batch buying on dips) in品种 (varieties) with strong mid-year report earnings certainty. Closely track the progress of U.S.-Iran negotiations and monitor today's trading volume changes and related performances in external markets.
Everbright Securities: Confidence in Medium-Term Market Trend, Awaiting Tech Profit Digestion and Mid-Year Report Season
Looking ahead, Everbright Securities believes that given the gradual resolution of overseas geopolitical and liquidity risks, confidence in the medium-term market trend remains. However, the technology sector currently holds significant gains and faces substantial profit-taking pressure. The short-term market may continue to experience震荡分化 (volatile divergence), awaiting the digestion of profits in tech themes and the预热 (preheating) of the mid-year report season. Against the backdrop of逐步落地 (gradual landing) geopolitical and liquidity risks, despite short-term volatility, the涨价趋势 (price increase trend) for cyclical sectors like non-ferrous metals/rare earths/minor metals is确定 (certain). The supply-demand driven certainty for technology manufacturing sectors like semiconductors, communications, power grid equipment, and robotics is also relatively clear. Furthermore, with日均成交额 (average daily turnover) consistently maintaining above the historically high level of 3 trillion yuan, the brokerage sector's业绩受益性 (performance benefit) is extremely prominent while its valuation remains low, presenting strong修复机会 (recovery opportunities).
Soochow Securities: A-Share Volatility Continues, Breakout Depends on Earnings Reconfirmation and Macro Liquidity Easing
Soochow Securities maintains that the A-share震荡期 (volatility period) continues, with明显的K型分化 (pronounced K-shaped divergence). What conditions are needed for a breakout from this range-bound phase? Changes on the分子端 (numerator side, i.e., earnings) require observation of the disclosure of半年度业绩预告 (mid-year report forecasts), typically around mid-July when companies with better performance issue提前预告 (advance notices). Changes at the industry level might materialize最早有望在 (as early as) the beginning of the third quarter. Changes on the分母端 (denominator side, i.e., discount rates) depend on global liquidity. Over the next quarter, U.S. inflation readings are expected to gradually decline, which could一定程度上逆转市场过高的加息预期定价 (partially reverse the market's excessively priced rate hike expectations), leading to a边际逐步宽松 (marginal gradual easing) in global macro liquidity expectations. Timing-wise, changes in global macro liquidity could occur around the release of U.S. economic data in July. From a micro-liquidity perspective, recent成交金额 (trading volumes) in Japan and South Korea have gradually declined after peaking on May 28, while成交额 (turnover) in China and the U.S. has gradually increased over the past week, indicating a relatively healthy structure in market micro-liquidity. In summary, the reconfirmation of industry trend earnings and边际宽松 (marginal easing) in global macro liquidity,作为突破震荡阶段的主要因素 (as the main factors for breaking out of the volatile phase), are both有望在 (expected to) change at the beginning of the third quarter. Accompanied by the concentration of micro-liquidity, after the震荡结束 (end of the volatility), a wave of修正 (correction) for global liquidity pricing might启动 (commence) at the start of Q3, leading the market to operate向上运行 (upward) again.
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