A-share review | Shanghai index fell 0.79%, shipping and solid-state batteries bucked the trend and semiconductors led the decline
The Zhitong Finance App learned that on October 8, A-shares ushered in the first trading day after the National Day holiday. The three major indices collectively surged and declined, fluctuated and weakened throughout the day, bucked the trend in the direction of resources and dividends, and the technology growth sector pulled back sharply. The market showed a pattern of “index differentiation, stronger resource stocks, and a decline in technological growth”. At the close, the Shanghai Index reported 3811.90 points, down 0.79%; Shenzhen Stock Exchange reported 12620.90 points, down 2.07%; GEM reported 3036.66 points, down 3.15%; Science and Technology Innovation 50 reported 1456.32 points, down 4.82%; and Beijing Securities 50 reported 1012.10 points, down 2.65%. The turnover of the Shanghai and Shenzhen markets was 1682.109 billion yuan, an increase of 244.09 billion yuan compared to the previous trading day (September 30). In the Shanghai and Shenzhen markets, 1,698 individual stocks rose, 3,748 stocks fell, and 126 were flat. Of these, 45 rose or stopped, and 16 fell to a halt, accounting for about 30% of the rising stocks.
In terms of sectors, the increase was highest in shipping ports, coke II, oil service engineering, refining and trade, gas, petroleum and petrochemicals, coal, etc.; the decline was higher in the direction of optical chips, semiconductors, glass substrate packaging, electronics, optical communications, CPO, biological products, consumer electronics, and memory.
driving factors
The index was clearly divided. The Shanghai Index fell 0.79%, Science and Innovation 50 fell 4.82%, and technology growth sectors such as semiconductors, electronics, and communications had the highest declines, while shipping ports, petroleum and petrochemicals, coal, gas, banking and other resources and dividends had the highest gains. Among them, ICBC, Bank of China, and Bank of Hangzhou all hit record highs in the intraday market.
According to the minutes of the September meeting released by the Federal Reserve on October 7, most participants thought it might be appropriate to further raise the federal funds rate target range before the end of this year. On the same day, the 10-year US Treasury yield once rose to 5.36%, and the 30-year US Treasury yield once hit 5.73%, all of which hit new highs since 2002 (Sina Finance, 21st Century Economic Report).
According to CCTV news, on October 7, local time, Iran said it would block the “illegal” waterway in the Strait of Hormuz. On the same day, an oil tanker was hit by multiple launchers in the waters off Qatar. The situation in the Middle East disrupted crude oil shipping supply expectations. Brent crude oil remained above 100 US dollars/barrel, and the direction of oil and gas and oil transportation strengthened on the same day.
Seven departments including the Ministry of Industry and Information Technology issued the “15th Five-Year Plan for the Development of the New Battery Industry” on September 28, proposing that all-solid-state batteries will initially be applied on a large scale by 2030. The solid-state battery concept bucked the trend and became active on the same day.
China Merchants Shipping announced on the evening of September 30 that its wholly-owned subsidiary signed a 25-year long-term transportation agreement with the customer for 6 very large ore carriers (VLOC). The total contract amount is expected to be no less than 2.8 billion US dollars. On the same day, China Merchants Shipping's market hit a standstill and closed up 9.33%.
Morgan Stanley released a research report on October 1, judging that the US Federal Communications Commission (FCC)'s potential restrictions on Chinese optical modules are most likely to be implemented in stages starting with the 3.2T generation, and there is a “US content exemption” path (US companies account for 65% of the value in the material list and may still be approved for import). The report continued to ferment during the National Day holiday. Combined with reports in the market that there was price reduction pressure for 1.6T supporting optical chips.
Popular sector aspects
1. Shipping port: The industry index closed up 3.78%, the shipping concept closed up 1.35%, the Baltic Sea Dry Bulk Index (BDI) concept closed up 3.77%, COSCO Haineng (+10.02%) and China Merchants South Oil (+9.96%) rose and stopped, and China Merchants Shipping hit a halt in the market and closed up 9.33%. Haitong Development rose 3.53%, COSCO Marine closed up 2.52%. On the catalytic side, according to CCTV news, on October 7, local time, Iran said it would block an “illegal” waterway in the Strait of Hormuz. On the same day, an oil tanker was hit by multiple launchers in the waters off Qatar. The situation in the Middle East continues to disrupt crude oil shipping supply expectations. The CITIC Securities Research Report also pointed out that the remodeling of the three-quarter cycle paradigm is expected to drive oil transportation and shipping to release profit elasticity.
2. Solid-state batteries: The concept index closed up 0.75%, the solid-liquid battery concept closed up 3.08%, Liwang shares rose and stopped 30CM (+29.96%), Times Wanheng sealed 4 consecutive boards (+9.98%), Zizhu Hi-Tech and Chuanyi Technology all sealed 3 consecutive boards (+10.00%), and Lingpai Technology rose and stopped 20CM (+19.98%). In terms of catalysis, seven departments including the Ministry of Industry and Information Technology issued the “15th Five-Year Plan for the Development of the New Battery Industry” on September 28, proposing that all solid-state batteries will initially be used on a large scale by 2030.
3. Petroleum and petrochemical, coal and gas: The petroleum and petrochemical industry index closed up 2.46%, gas II closed up 2.50%, coke II closed up 2.79%, coal closed up 1.15%, Shandong Molong (+9.99%) rose and stopped, Antai Group (+9.90%) and Guoxin Energy (+10.00%) rose and stopped, CNPC rose 3.39%, and Sinopec rose 3.79%. On the catalytic side, the rising situation in the Middle East is driving crude oil prices to maintain high expectations.
Adjust the section
The leading decline on the same day was mainly in the direction of technological growth: the optical chip concept index closed down 7.39%, the semiconductor industry index closed down 5.13%, the glass substrate packaging closed down 4.61%, the electronics industry closed down 4.25%, optical communication closed down 4.16%, the CPO concept closed down 4.08%, consumer electronics closed down 3.51%, memory closed down 3.41%, and the biological products industry index in pharmaceutical biology fell 4.00%.
In terms of individual stocks, Yuanjie Technology and Changguang Huaxin both fell 20CM, Dongshan Precision and Vogue Optoelectronics fell to a standstill, Unicom Instruments closed down 8.19%, and Changxin Technology closed down 7.79%. Among them, the direction of optical chips, CPO, semiconductors, electronics, etc. has been continuously adjusted since late September (the optical chip concept index fell from 5348.60 points on September 21 to 4,400.40 points on the same day, with a range drop of about 17.7%), and the decline continued to be the highest on the same day. Looking at the new information on the same day, Changguang Huaxin, Shijia Photonics, and Yongding Co., Ltd. all indicated to the China Securities News that they have not received any news related to optical chip price cuts. Among them, Shijia Photonics believes that this round of sector adjustments may stem from the FCC policy research report released by Morgan Stanley on October 1; It is indicated that currently Mainstream 800G and 1.6T products are not subject to this potential rule. There is no official formal policy text on the relevant restrictions, and there is still great uncertainty about implementation.