The Shanghai and Shenzhen stock markets showed weak performance in early trading, with the SSE Composite Index down 0.12% at midday, closing at 3,809.08 points. The Shenzhen Component Index and ChiNext Index further widened their losses, falling 1.03% and 1.27% respectively. Trading volume in the Shanghai and Shenzhen markets amounted to 1.0134 trillion yuan (RMB, same below) in the morning session, down 155.2 billion yuan or 13.3% compared to the same period on the previous trading day.
On the trading front, the agriculture sector fluctuated lower, with Shennong Seed Industry (Shen: 300189) down over 8%. The World Meteorological Organization stated in its monthly climate bulletin that this year's El Niño phenomenon will further intensify before reaching its peak in December, with nearly a 100% probability of persisting until February 2027. Non-ferrous metals and gold-related concepts continued to decline. Affected by rising oil prices, high U.S. Treasury yields, and substantial market selling pressure, international gold prices have continued to slide recently.
MLCC-related concepts led the declines, with Kangda New Materials (Shen: 002669) down over 6% and Fenghua High-tech (Shen: 000636) falling more than 5%. On the news front, Murata Manufacturing, the global leader in MLCCs, plans through its subsidiary Okayama Murata Manufacturing to invest approximately 9 billion yen to add production lines for ceramic materials used in electronic components such as MLCCs. The new production line will commence construction in October 2026 and begin operations in April 2028. Open Source Securities published a research report indicating that global manufacturers will continue price hikes throughout 2026, deepening the industry-wide supply and demand shortage in the MLCC sector.
On the upside, film, media, and short-form drama gaming concepts continued to rise, with nearly ten stocks including Guomai Culture (Shen: 301052) and Bona Film Group (Shen: 001330) hitting limit-up gains. Additionally, the banking sector advanced across the board, with Bank of China (Sh: 601988), China CITIC Bank (Sh: 601998), and Industrial and Commercial Bank of China (Sh: 601398) reaching multi-year highs during trading. To date, 21 A-share banks have announced mid-year dividend plans for 2026, collectively proposing dividends exceeding 260 billion yuan, among which 15 banks have increased their payout ratios compared to last year. (wn)
On the trading front, the agriculture sector fluctuated lower, with Shennong Seed Industry (Shen: 300189) down over 8%. The World Meteorological Organization stated in its monthly climate bulletin that this year's El Niño phenomenon will further intensify before reaching its peak in December, with nearly a 100% probability of persisting until February 2027. Non-ferrous metals and gold-related concepts continued to decline. Affected by rising oil prices, high U.S. Treasury yields, and substantial market selling pressure, international gold prices have continued to slide recently.
MLCC-related concepts led the declines, with Kangda New Materials (Shen: 002669) down over 6% and Fenghua High-tech (Shen: 000636) falling more than 5%. On the news front, Murata Manufacturing, the global leader in MLCCs, plans through its subsidiary Okayama Murata Manufacturing to invest approximately 9 billion yen to add production lines for ceramic materials used in electronic components such as MLCCs. The new production line will commence construction in October 2026 and begin operations in April 2028. Open Source Securities published a research report indicating that global manufacturers will continue price hikes throughout 2026, deepening the industry-wide supply and demand shortage in the MLCC sector.
On the upside, film, media, and short-form drama gaming concepts continued to rise, with nearly ten stocks including Guomai Culture (Shen: 301052) and Bona Film Group (Shen: 001330) hitting limit-up gains. Additionally, the banking sector advanced across the board, with Bank of China (Sh: 601988), China CITIC Bank (Sh: 601998), and Industrial and Commercial Bank of China (Sh: 601398) reaching multi-year highs during trading. To date, 21 A-share banks have announced mid-year dividend plans for 2026, collectively proposing dividends exceeding 260 billion yuan, among which 15 banks have increased their payout ratios compared to last year. (wn)
