To The Moon

On June 16th, A-shares experienced mixed and volatile trading. The three major indices opened with divergent movements, with the Shanghai Composite Index initially dipping slightly before recovering to turn positive. The ChiNext Index surged more than 2%. Sectors related to rare earth permanent magnets, glass substrates, industrial gases, and memory chips saw notable gains. Some computing hardware stocks were active, while areas like copper-clad laminates and optical communications strengthened. The electrical equipment and fine chemical sectors also performed well. Conversely, coal and shipping sectors underwent adjustments.

Hong Kong stocks opened lower and continued to decline, with both the Hang Seng Index and the Hang Seng Tech Index falling over 1%. Technology and internet stocks were broadly lower, with Meituan (HK: 3690), Tencent Holdings Ltd (HK: 0700), and Kuaishou Technology (HK: 1024) among the leading decliners. In the bond market, treasury futures rose across the board. In commodities, most domestic futures contracts declined, led by polysilicon and asphalt.

Key Market Performance

A-Shares: At the time of writing, the Shanghai Composite Index was up 0.16%, the Shenzhen Component Index rose 1.15%, and the ChiNext Index gained 2.00%.

Hong Kong Stocks: At the time of writing, the Hang Seng Index was down 1.24%, and the Hang Seng Tech Index had fallen 1.44%.

Bond Market: Treasury futures were up across all tenors. The 30-year contract rose 0.09%, the 10-year gained 0.07%, the 5-year added 0.04%, and the 2-year edged up 0.01%.

Commodities: Most domestic commodity futures were lower. Stainless steel futures rose over 2%, while Shanghai gold and the container shipping index gained 1%. Shanghai silver, Shanghai tin, eggs, Shanghai nickel, and rapeseed also advanced. Decliners included iron ore, rubber, coke, hot-rolled coil, rebar, Shanghai copper, pulp, and coking coal. Alumina, industrial silicon, Shanghai aluminum, ferromanganese silicon, caustic soda, and crude oil fell over 1%. Fuel oil and lithium carbonate both dropped more than 3%, while asphalt and polysilicon plunged over 4%.

Notable Intraday Moves

10:44: The ChiNext Index rose more than 2%, led by gains in non-ferrous metals, MLCCs, copper foil, and optical fiber.

10:16: The memory chip sector continued to strengthen, with Wuhan Jingce Electronic Group Co.,Ltd. (SZ: 300567) rising over 10%. Earlier, Sino Wealth Electronic Ltd. (SZ: 301099) hit the 20% daily limit, followed by gains in Tongyou Technology Co.,Ltd. (SZ: 300302), Chengdu Sino Microelectronics Technology Co.,Ltd. (SH: 688709), Shenzhen Kaifa Technology Co.,Ltd. (SZ: 000021), and GigaDevice Semiconductor (Beijing) Inc. (SH: 603986).

09:52: The rare earth permanent magnet concept surged, with Shenghe Resources Holding Co., Ltd. (SH: 600392), Beijing Zhongke San Huan Hi-Tech Co.,Ltd. (SZ: 000970), and Xiamen Tungsten Co.,Ltd. (SH: 600549) hitting the daily limit. Zhejiang Huahong Technology Co.,Ltd. (SZ: 002645), China Rare Earth Group Co., Ltd. (SH: 600111), and China Northern Rare Earth (Group) High-Tech Co.,Ltd. (SH: 600111) were also among the top gainers.

09:48: The glass fiber sector gained in early trading. Shandong Fiberglass Group Co., Ltd. (SH: 605006) marked its third limit-up in six sessions, while Chongqing Polycomp International Corp. (SZ: 301526) rose over 10% to a record high. Sinoma Science & Technology Co.,Ltd. (SZ: 002080), Honghe Technology Co.,Ltd. (SH: 603256), China Jushi Co., Ltd. (SH: 600176), and Changhai Composite Materials Co.,Ltd. (SZ: 300196) followed higher.

09:44: The power grid equipment sector saw a sudden upward move. China XD Electric Co.,Ltd. (SH: 601179) rose by the daily limit for a second consecutive session, and Changcheng Electric Group Co.,Ltd. (SH: 600192) also hit the limit. Ankerui Electric Co.,Ltd. (SZ: 300286), Jinpan International Ltd. (SH: 603676), Taiji Computer Corporation Limited (SZ: 002368), Xinte Electric Co.,Ltd. (SZ: 301120), and Baobian Electric Co.,Ltd. (SH: 600550) advanced.

The optical communication concept strengthened repeatedly, led by MPO-related stocks. T-Crown (Shenzhen) Photonics Co., Ltd. (SZ: 300570) and Changxin Xinte Co.,Ltd. (SZ: 300101) rose over 10%, continuing to set new record highs. Guangku Technology Co.,Ltd. (SZ: 300620), Fuxin Technology Co.,Ltd. (SH: 688662), Hengtong Optic-Electric Co.,Ltd. (SH: 600487), and Zhilifang Co.,Ltd. (SZ: 301312) were also among the top performers.

The liquid cooling server sector was active, with Chunzhong Technology Co.,Ltd. (SH: 603516) approaching the daily limit. Qiangrui Technology Co., Ltd. (SZ: 301128), Sichuan Chuanhuan Technology Co.,Ltd. (SZ: 300547), Feilong Auto Components Co.,Ltd. (SZ: 002536), Tenglong Auto Parts Co.,Ltd. (SH: 603158), and Dayuan Pump Industry Co.,Ltd. (SH: 603757) followed suit.

09:26: The Shanghai Composite Index opened 0.06% lower, while the ChiNext Index opened 0.79% higher. Sectors showing activity included PCBs, batteries, industrial gases, glass fiber, memory, robotics, commercial aerospace, and CPO. Lithium mining, stock trading software, and AI application concept stocks weakened.

09:21: The Hang Seng Index opened 0.07% lower, and the Hang Seng Tech Index opened flat. MINIMAX, Lenovo Group Limited (HK: 0992), XPeng Inc. (HK: 9868), Semiconductor Manufacturing International Corporation (HK: 0981), and Contemporary Amperex Technology Co., Limited (SZ: 300750) were among the early gainers. Meituan (HK: 3690), Bilibili Inc. (HK: 9626), and Baidu, Inc. (HK: 9888) were among the leading decliners.