On Tuesday, September 8, the three major A-share indices closed with mixed results.
The Shanghai Composite Index settled at 3940.55 points, up 0.20%, while the Shenzhen Component Index fell 0.52% to 13703.21 points. The ChiNext Index declined 1.15% to close at 3359.72 points. Total trading volume across Shanghai, Shenzhen, and Beijing markets reached approximately 1.98 trillion yuan, up 14 billion yuan from the previous trading day, with over 3,400 individual stocks advancing across the market.
According to an analyst at Jinbailin Consulting, the current environment for A-shares is complex and volatile. Overseas geopolitical conflicts and liquidity disruptions have led funds to scale back trading activity. However, active trading in physical assets such as crude oil and copper, along with the major financial sector, has provided support to the Shanghai Composite Index.
In terms of capital flows, data showed that among Shenwan's primary industry classifications, the basic chemicals, non-ferrous metals, and pharmaceutical biology sectors saw the highest net capital inflows, with 7.17 billion yuan, 6.58 billion yuan, and 4.07 billion yuan respectively. Conversely, the computer, electronics, and non-bank financial sectors experienced net outflows of 4.39 billion yuan, 3.43 billion yuan, and 1.99 billion yuan respectively.
Looking at sector performance, the oil and petrochemical sector led the gains with a 3.68% increase. The real estate and steel sectors followed, rising 2.02% and 1.93% respectively. On the downside, the power equipment, electronics, and computer sectors posted losses of 1.16%, 1.12%, and 0.94% respectively.
The oil and petrochemical sector displayed a broad-based rally, with 43 of its 47 constituent stocks closing higher. At the individual stock level, three stocks including Huajin Chemical, Heshun Petroleum, and Zhongman Petroleum hit the daily limit up. Multiple other stocks such as Tongyuan Petroleum, Guanghui Energy, and Hengyi Petrochemical rose by more than 5%.
Where to Begin
In a research report, Ping An Securities noted that geopolitical conflicts have escalated in stages, with traffic through the Strait of Hormuz remaining relatively low. Combined with US crude oil inventories sitting at historically low levels, short-term support for oil prices remains relatively strong. In response to intense volatility in international oil prices, domestic oil companies have reduced their earnings sensitivity to oil prices through integrated upstream-downstream operations and diversified oil and gas sourcing. They have also accelerated investment in domestic offshore oil and gas resource development to reduce external energy dependence.
Semiannual reports have also provided fundamental confirmation for the sector's performance. In the first half of 2026, the three major state-owned oil companies — PetroChina, CNOOC, and Sinopec — all achieved double-digit growth in net profits attributable to parent shareholders. PetroChina reported net profits of 103.93 billion yuan, up 23.74% year-on-year. CNOOC achieved 85.82 billion yuan, a 23.42% increase. Sinopec posted 25.63 billion yuan, up 19.29%. Together, the three oil giants generated combined net profits exceeding 210 billion yuan in the first half of the year.
A macro strategy researcher at Jinteng Fund's equity research department stated that in terms of industry allocation, an evenly balanced approach should be maintained in the medium term. Given rapid market rotation, attention should be focused on sectors supported by industry trends and supply-demand improvements that offer strong earnings prospects and attractive valuation opportunities.
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