To The Moon

Major Chinese and Hong Kong semiconductor stocks experienced a broad decline, with shares like SMIC, HUA HONG SEMI, Biwin Storage, and GigaDevice falling across the board. This followed a sell-off in U.S. tech and chip stocks triggered by Broadcom's AI revenue guidance falling short of market expectations. Broadcom's stock plunged over 12% in a single day, sparking a broader tech sector rout that saw the Nasdaq drop more than 1% at one point, with the semiconductor index closing down 2.15%.

On June 5th, the A-share market saw volatile declines, with the three major indices opening lower in the morning session. The ChiNext index fell 1%, while the semiconductor sector adjusted downwards. Sectors like insurance, petrochemicals, and banks showed strength, and healthcare stocks staged a rebound.

The Hong Kong market also opened lower and continued to decline, with both the Hang Seng Index and the Hang Seng TECH Index falling. While most technology and internet stocks rebounded, the semiconductor sector led losses, with HUA HONG SEMI dropping over 4%. In the bond market, treasury futures fell across the board. In commodities, domestic futures were broadly lower. Key market movements:

A-Shares: At the time of writing, the Shanghai Composite Index was down 0.30%, the Shenzhen Component Index was down 1.12%, and the ChiNext Index was down 1.26%.

Hong Kong Shares: At the time of writing, the Hang Seng Index was down 0.48%, and the Hang Seng TECH Index was down 0.87%.

Bond Market: Treasury futures were down across all contracts. At the time of writing, the 30-year front-month contract fell 0.03%, the 10-year fell 0.06%, the 5-year fell 0.05%, and the 2-year fell 0.03%.

Commodities: Domestic commodity futures were broadly lower. At the time of writing, only a very few products like rapeseed, caustic soda, and asphalt were in positive territory. Coking coal, coke, Shanghai gold, rebar, hot-rolled coil, Shanghai copper, Shanghai aluminum, pulp, rubber, the containerized freight index, platinum, and iron ore all declined. Aluminum oxide, soybean meal, Shanghai silver, fuel oil, glass, industrial silicon, and silicon manganese fell over 1%. Crude oil, lithium carbonate, eggs, polysilicon, and palladium dropped more than 2%, while Shanghai tin slumped over 4%.

09:53

The glass substrate concept remained active, with Woguang Photoelectric approaching a limit-up, hitting a new historical high. Other gainers included Gobi J, Triumph Science & Technology, Sanxia New Building Materials, Wfong Photoelectric, and IRICO Group.

09:42

The 6G concept saw volatile gains, with Wuhan Fingu Electronic Technology hitting the limit-up. Shenglu Telecommunication, ZTE, and Chuangyuan Information Technology followed suit.

On the news front, the Ministry of Industry and Information Technology initiated a pilot program for collaborative 6G innovation development between the ministry and provincial governments. By 2029, the program aims to further stimulate innovation from local governments and enterprises, resulting in a batch of independently innovated 6G technology solutions.

09:38

The optical fiber concept was active again, with Tefa Information hitting the limit-up. Yongding Shares, Xinneng Taishan, Yangtze Optical Fibre and Cable, and Tongding Interconnection followed higher.

Industry insiders noted that optical fiber preforms, an upstream material for optical cable products, are currently in high demand, with "Type A2 optical fiber preforms" being the most sought-after. Data shows the price for Type A2 preforms has surged nearly 550% from early 2025 to 2026. Insiders indicated that the expansion cycle for preform production typically requires 18 to 24 months.

Optical communication concept stocks were active, with FiberHome Telecommunication and Tefa Information hitting limit-ups. Far East股份, Yongding Shares, and Zhongtian Technology also ranked among the top gainers.

09:34

Hong Kong-listed memory concept stocks weakened across the board. The CSOP 2x Long SK Hynix ETF fell over 15%, the CSOP 2x Long Samsung ETF dropped over 12%, while Montage Technology and GigaDevice both declined nearly 6%.

It was noted that Broadcom disclosed its latest quarterly results and outlook. Although the quarterly performance itself was not weak, the company failed to raise its AI chip sales guidance for 2027, disappointing market expectations that had previously driven chip stocks to multi-year highs.

09:33

Both the Shenzhen Component Index and the ChiNext Index fell over 1%, while the STAR 50 Index dropped more than 3%. Semiconductor chips and computing hardware led the declines, with nearly 2,400 stocks falling across the Shanghai, Shenzhen, and Beijing markets.

09:26

The Shanghai Composite Index opened 0.32% lower, and the ChiNext Index fell 0.22%. The semiconductor industry chain and memory concepts led the losses, while CRO stocks bucked the trend to move higher.

09:23

The Hang Seng Index opened 0.27% lower at 25,186.12 points; the Hang Seng TECH Index fell 0.31%. Lenovo Group dropped over 4%, and HUA HONG SEMI fell over 3%.