To The Moon

On June 3rd, Chinese A-shares experienced a volatile but ultimately positive trading session, with the three major indices opening higher. The Shanghai Composite Index recovered from a lower open, while the ChiNext Index surged over 2%, primarily driven by strong performances in technology hardware stocks, particularly those related to computing power.

Key sectors leading the gains included optical chips, optical modules, advanced packaging, and optical communications. The semiconductor and chip industry chain also saw significant upward movement. In contrast, the consumer staples sector underwent an adjustment, with baijiu stocks declining.

Hong Kong markets opened lower and continued to slide, with both the Hang Seng Index and the Hang Seng Tech Index falling. The HSI dropped 1%, while the HSTECH declined more than 1%. Technology and internet stocks collectively retreated, although semiconductor names like SMIC and Hua Hong Semiconductor bucked the trend with a rebound. In the bond market, treasury futures mostly fell. In commodities, the majority of domestic futures contracts traded lower.

Core Market Performance

A-Shares: As of the latest update, the Shanghai Composite Index was up 0.24%, the Shenzhen Component Index rose 1.48%, and the ChiNext Index gained 2.19%.

Hong Kong Shares: As of the latest update, the Hang Seng Index was down 1.02%, and the Hang Seng Tech Index had fallen 1.51%.

Bond Market: Treasury futures were down across the board. The 30-year main contract fell 0.16%, the 10-year main contract dipped 0.01%, the 5-year main contract was flat, and the 2-year main contract edged down 0.01%.

Commodities: Most domestic commodity futures were lower. Rubber and Shanghai tin rose 1%, while Shanghai copper, Shanghai aluminum, palladium, pulp, coke, crude oil, glass, ferromanganese silicon, and stainless steel moved higher. Conversely, rebar, coking coal, hot-rolled coil, fuel oil, caustic soda, industrial silicon, Shanghai gold, eggs, iron ore, rapeseed, Shanghai silver, platinum, soybean meal, and Shanghai nickel all declined. Alumina and asphalt fell over 1%, while polysilicon, the containerized freight index, and lithium carbonate all dropped more than 2%.

Key Market Movements

09:50

The ChiNext Index rose nearly 2%, led by sectors including copper cable high-speed connections, fiber optics, CPO (co-packaged optics), and semiconductors.

09:47

The Hong Kong Hang Seng Index's intraday loss widened to 1%.

09:45

Superhard material concept stocks surged again, with Huifeng Diamond up nearly 20%, Guojing Jinggong hitting the daily limit-up, Power Diamond rising over 9%, and Sifangda gaining more than 7%.

09:39

Memory chip concept stocks saw a volatile rise, with Tongyou Technology up over 10%. Jiangbolong, Netac Technology, Shannon Core Creation, Demingli, GigaDevice, Dawei Shares, and Shengong Shares followed with gains.

Advanced packaging concepts were active in early trading. Kangqiang Electron hit the daily limit-up, Tongfu Microelectronics approached the limit-up, while Jingfang Technology, Silan Microelectronics, China Resources Microelectronics, JCET Group, and Yake Technology also advanced.

On the news front, MediaTek announced its next-generation chip will exclusively use Intel's EMIB-T advanced packaging technology, abandoning TSMC's CoWoS solution. MediaTek revealed in a meeting that the tape-out target for this next-gen chip project is set for Q4 2026, with mass production planned for Q4 2027.

09:37

The Hang Seng Tech Index's early-session decline widened to 1.2%, while the Hang Seng Index fell 0.7%.

09:35

Hong Kong-listed optical communication stocks were strong across the board at the open. Lightelligence Technology surged over 10%, Yangtze Optical Fibre and Cable rose over 6%, Cambridge Technology gained over 5%, and FIT HON TENG advanced over 3%.

09:28

CPO (co-packaged optics) concepts opened sharply higher. Tianfu Communication jumped nearly 10%, hitting a record high with a total market capitalization exceeding 390 billion yuan. Hengguang, Luobotec, Guangpu Shares, Taichenguang, and Universal Scientific Industrial followed with gains.

Catalyzing the move, at the Computex 2026 exhibition, NVIDIA CEO Jensen Huang stated in a conversation with Marvell CEO Matt Murphy that Marvell would be the next company to reach a $1 trillion market cap. Simultaneously, NVIDIA announced that its Spectrum-X Ethernet Silicon Photonics technology is now in full production. Compared to networks using traditional transceivers, this technology can achieve 5x better energy efficiency, 5x greater AI uptime, and a deployment speed 1.3 times faster.

09:26

The Shanghai Composite Index opened 0.17% lower, while the ChiNext Index opened 0.82% higher. CPO and fiber optic concept stocks continued their strength. Photolithography machines, quantum technology, high-speed copper connections, and AI computing power themes were active. E-commerce, AI applications, power, photovoltaic inverters, PCBs, servers, and battery concept stocks weakened.

09:21

The Hang Seng Index opened 0.33% lower, and the Hang Seng Tech Index opened 0.7% down. Lenovo Group fell nearly 8%, Nio and Kingdee International dropped over 3%, while Li Auto and XPeng Group declined over 2%.