To The Moon

The three major A-share indices experienced significant volatility during the morning session on June 8th.

By the midday close, the Shanghai Composite Index had fallen 1.26%, the Shenzhen Component Index dropped 2.49%, and the ChiNext Index declined by 2.83%.

The combined half-day turnover for the Shanghai and Shenzhen markets was 1.77 trillion yuan, a decrease of 109.7 billion yuan from the previous trading day.

Key Market Movements

On the positive side, the industrial gases sector saw a rebound, with Zhongchuan Special Gas surging over 10% to set a new historical high.

The PCB (printed circuit board) concept rallied, with Huazheng New Material hitting the daily limit-up, following a similar move by Jin'an Guoj. Zhen Ding Technology, Nan Ya New Material, and Baoding Technology also advanced.

The optical fiber segment showed localized strength; Zhongtian Technology approached the limit-up to reach a new record high, while Tahe New Material secured its second consecutive limit-up board. Hengguang Co., Ltd., Quartz Co., Ltd., and Hengtong Optic-Electric Co., Ltd. followed suit.

The robotics concept defied the broader market downturn. Fengguang Precision achieved its second consecutive 30% limit-up, Fenglong Co., Ltd. gained two limit-up boards in three days, and Ningbo Dongli and Estun Automation both rose by the daily limit.

Areas of Weakness

On the downside, external factors weighed on market sentiment, leading semiconductor and chip stocks to fall sharply.

The non-ferrous metals sector continued its decline.

AI hardware concepts such as copper cable high-speed connections and optical modules underwent adjustments.

The lithium battery sector also trended lower.

Additionally, sectors including superconductivity, wind power equipment, and shipping showed relative weakness.

Analyst Outlook on Key Themes

Industrial Gases Rebound

The industrial gases concept rebounded from earlier losses. Zhongchuan Special Gas rose over 10% to a fresh all-time high.

Analysis: Customs export data shows the average export price for domestic tungsten hexafluoride reached $149.79 per kilogram in April, a 117.9% increase from January, with both month-on-month and year-on-year export volumes growing.

PCB Sector Rally

The PCB concept saw a significant uplift. Huazheng New Material hit the limit-up, following a similar earlier move by Jin'an Guoj. Zhen Ding Technology, Nan Ya New Material, and Baoding Technology also gained.

Analysis: According to a Goldman Sachs research report, the price of high-end AI-use PCBs globally surged approximately 40% in April alone compared to March, far exceeding historical single-month increase records.

Optical Fiber Strength

The optical fiber concept showed localized strength. Zhongtian Technology approached the limit-up to set a new record high, while Tahe New Material secured its second consecutive limit-up board. Hengguang Co., Ltd., Quartz Co., Ltd., and Hengtong Optic-Electric Co., Ltd. followed higher.

Analysis: Data indicates that quotes for A2-class optical fiber preforms have risen from 22-30 yuan per equivalent core kilometer in early 2025 to 160 yuan per equivalent core kilometer in 2026, a jump of nearly 550%. Industry insiders suggest the tight supply of optical preforms is likely to persist in the near term.

Robotics Defies Market Trend

The robotics concept moved higher against the broader market's decline. Fengguang Precision achieved its second consecutive 30% limit-up, Fenglong Co., Ltd. gained two limit-up boards in three days, and Ningbo Dongli and Estun Automation both rose by the daily limit.

Analysis: On June 7th, Ubtech announced that pre-orders for its consumer-grade humanoid robot brand, You World, exceeded 2,110 units within six days of launch.

Institutional Perspectives

Industrial Securities

The high volatility state of technology stocks may continue, allowing the market to achieve a rebalancing in its structure.

Industrial Securities noted that last Friday's adjustment in U.S. stocks, while seemingly driven by shifts in macro and industry logic, is essentially a liquidity-driven event with emotional and structural impacts.

Looking ahead, amid a series of global liquidity event disturbances, high volatility in tech stocks may persist, potentially enabling the market to undergo a structural rebalancing.

With the short-term market entering an earnings vacuum period, July could usher in a new wave of earnings catalysts from both domestic and international tech companies, potentially reigniting the technology sector rally.

Zhongtai Securities

The independent supporting factors for the A-share technology sector remain robust.

Rising overseas interest rate risks may affect A-shares through two channels: funding and liability-side pressures, as surging U.S. Treasury yields reshape global capital flows; and overseas tech sector performance, where a sharp drop in the Philadelphia Semiconductor Index exerts short-term emotional pressure on A-share computing power chains.

The current structural fragility of the market warrants attention, as concentrated profits in a few sectors can lead to concentrated selling and amplified volatility upon external shocks.

This A-share bull market is not primarily driven by macroeconomic risk reduction but by the realization of China's technological innovation investments and the rapid development of the AI industry—an industrial bull cycle. The independent supporting factors for the A-share tech sector remain solid.

Guosen Securities

Short-term consolidation in A-shares does not alter the medium-term upward trend; the bull market continues.

Trading activity in the current tech rally is again approaching historical extremes. Meanwhile, valuations and holdings in some previously underperforming value sectors are at historical lows, suggesting conditions for a market style rebalancing are present.

However, a full style reversal is unlikely. Fundamentally, technology maintains a relative advantage, and the current macro liquidity environment is relatively stable.

Historically, a transition from bull to bear markets requires signals like overall market overheating or a significant weakening of the macro environment, which are currently absent.

Looking forward, short-term consolidation does not change the medium-term upward trajectory, and the bull market remains intact. Industry allocation should focus on balance, with potential hot spot rotation within the tech sector. Attention should also be paid to consumption areas like property and liquor, as well as resource products with improving supply-demand dynamics.

China Galaxy Securities

Market rotation requires focus on three key points.

First, external disturbances persist. U.S. non-farm payroll data significantly exceeded expectations, fueling further market anticipation of a Fed rate hike within the year, lifting U.S. Treasury yields and weakening overseas equity markets. Marginal changes in overseas liquidity will constitute periodic disturbances. The tense situation in the Middle East continues, with recurring impacts on global crude oil and commodity pricing.

Second, industry growth expectations remain a crucial clue for rotation. Subsequent focus should track the sustainability of industrial prosperity and profit growth.

Third, policy and regulatory guidance are profoundly influencing the logic of capital allocation, which is expected to gradually tilt towards policy-supported real industries and high-quality sectors.