To The Moon

On July 22, A-shares experienced volatile gains. The three major stock indices diverged at the open, with the Shanghai Composite and Shenzhen Component indices rising while the ChiNext index fell. Computing hardware rebounded, with strength seen in server and optical circuit switch sectors. The AI server leader, Unisplendour Corporation Limited (ASX: 000938), surged to its daily limit-up. Healthcare stocks rallied strongly, with CRO and innovative drug sectors performing well. Non-ferrous metals were active, while sectors like AI applications and coal underwent adjustments.

Hong Kong stocks opened lower and continued to decline, with both the Hang Seng Index and the Hang Seng Tech Index falling. The Hang Seng Tech Index dropped nearly 2%. Technology and internet stocks were broadly lower, and major AI model stocks retreated, with Zhipu and MINIMAX both falling over 5%. In the bond market, government bond futures rose. In commodities, most domestic commodity futures gained.

Key Market Movements

A-Shares: At the time of writing, the Shanghai Composite Index was up 0.27%, the Shenzhen Component Index rose 0.41%, and the ChiNext Index fell 0.35%.

Hong Kong Stocks: At the time of writing, the Hang Seng Index was down 0.60%, and the Hang Seng Tech Index fell 1.83%.

Bond Market: Government bond futures fell across the board. At the time of writing, the 30-year main contract was up 0.21%, the 10-year main contract rose 0.05%, the 5-year main contract gained 0.02%, and the 2-year main contract increased 0.01%.

Commodities: Domestic commodity futures were mostly higher. At the time of writing, energy products led the gains, with SHFE fuel oil up 4.23%. Precious metals all rose, with SHFE silver gaining 3.74%. Most ferrous metals were higher, with DCE coking coal up 2.00%. Most chemical products advanced, with DCE ethylene glycol rising 1.79%. Most base metals increased, with SHFE copper up 1.75%. All shipping futures rose, with the INE Containerized Freight Index (European route) up 1.48%. Non-metallic building materials were mixed, with CZCE glass gaining 0.22%. Oils and oilseeds led the declines, with CZCE rapeseed oil down 0.72%. Most agricultural by-products fell, with DCE corn down 0.26%. Most new energy materials declined, with GFEX industrial silicon falling 0.18%.

Intraday Updates

09:43: The semiconductor equipment sector extended its strong performance from the previous session in early trading. Tolrance hit the 20cm limit-up for a second consecutive day. Companies like Zhenbao Technology, Naura Technology Group Co.,Ltd. (ASX: 002371), Jinhaitong, Huaya Intelligent, and Yitang followed with gains.

In related news, on July 21, a report from the global semiconductor industry association (SEMI) projected that global semiconductor equipment sales will grow 23.2% to $165.9 billion in 2026, reaching a record high of $229.5 billion by 2028.

09:26: The Shanghai Composite Index opened 0.64% lower, and the ChiNext Index fell 1.11%. Sectors including servers, PCBs, AI computing, cross-border e-commerce, memory, fintech, commercial aerospace, and photovoltaic concept stocks weakened. Gold, oil & gas, and shipping sectors bucked the trend and moved higher.

09:21: The Hang Seng Index opened 0.61% lower at 24,978.90 points. The Hang Seng Tech Index fell 0.71%. Zhipu rose over 6%, Lenovo gained nearly 4%, while NetEase fell over 3%. JD Health, NIO, and Bilibili all dropped more than 2%.