A-share closing review: Shenzhen Component Index opens higher but closes lower, down 3.07%, with over 4,800 stocks declining across the entire market

The three major A-share indices all declined today. By the close, the Shanghai Composite Index fell 1.43%, the Shenzhen Component Index dropped 3.07%, the ChiNext Index decreased 2.57%, and the CSI 50 Index declined 4.11%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was 31,576 billion yuan, an increase of 1,118 billion yuan compared to the previous day. Over 4,800 stocks across the three markets declined.

In terms of sectors and themes, the top gains were seen in oil and gas exploration and services, port shipping, coal mining and processing, agriculture and forestry, banking, and insurance. The biggest declines were in military equipment, non-ferrous metals, storage chips, rare earth permanent magnets, commercial aerospace, chemical fibers, PCBs, and high-speed copper cable concepts.

On the market, influenced by escalating tensions in the Middle East, sectors such as oil and natural gas, and shipping surged again. The “Three Barrel Oil” companies—CNOOC, PetroChina, and Sinopec—each experienced two consecutive limit-up sessions during trading. Stocks like Nanjing Port and China Merchants Shipping also hit the daily limit.

Risk aversion increased, favoring the banking sector, with the five major banks—Industrial, Agricultural, Bank of China, China Construction Bank, and Bank of Communications—rising during the session. In the afternoon, panic sentiment intensified, causing most sectors to decline. The storage chip sector led the decline, with stocks like Purun Shares, Guokewei, and Canxin Shares falling over 10%. Small metals and rare earth sectors also saw significant pullbacks, with stocks such as Northern Rare Earth, Industrial Bank Tin, Western Materials, and Shenghe Resources hitting the daily limit down.