On the market, seed industry stocks weakened with volatility, with Hainan Rubber (SH:601118) hitting the daily trading limit down. The shipbuilding sector continued to decline during the session, affected by recent tensions in the Strait of Hormuz. The communication equipment sector led the declines, with Xinyi Sheng (SZ:300502) plunging over 7%, erasing its full-year gains. The semiconductor sector remained under pressure, with Changxin Technology (SH:688825) falling over 5%, and its total market value dropping below 3 trillion yuan.
On the upside, liquor-related stocks rose逆势走高; telecom stocks rallied in the late session, with China Telecom (SH:601728) gaining over 2% and China Mobile (SH:600941) rising 1%. However, Citigroup noted that mainland telecom industry revenues may remain under pressure in the third quarter, with investor focus shifting toward monetization of AI infrastructure and dividend support.
UBS Securities published a report indicating that downside risks in the A-share market are currently limited, supported by ETF inflows and A-share earnings still being in an upward cycle. The recent pullback stems more from investors' concentrated unwinding of crowded trades in the technology sector. Currently, the weekly trading value of the broader tech sector as a percentage of total A-share market turnover has retreated to early April 2024 levels. Additionally, mutual funds are also facing redemption pressure as investors exit upon recovering their principal. (wn)
| Close (Points) | Change (%) | Trading Value (Billion RMB) | |
|---|---|---|---|
| SSE 300 | 4166.01 | -1.23 | |
| Shanghai Composite Index | 3707.48 | -1.59 | 7743.92 |
| Shenzhen Component Index | 11816.79 | -2.43 | 8586.13 |
| ChiNext Index | 2783.17 | -2.92 | |
| STAR 50 | 1359.52 | -1.50 | |
| B Share Index | 294.99 | -3.11 | 2.72 |
| Shenzhen B Share Index | 1145.78 | -1.33 | 0.70 |
