A-shares accelerate decline in afternoon session, chemicals stage counter-cyclical rally, Zhongfu Shenying rises 20cm limit up, Hong Kong tech stocks plunge

Reporter | Zhang Jiayu

Editor | Jiang Peixia

Major A-share indices weakened. As of 14:50, the ChiNext Index dropped over 2.00%, the Shanghai Composite fell 0.83%, the Shenzhen Component declined 1.81%, and the Sci-Tech Innovation Board Index dropped more than 2%. Leading declines were in computing hardware, oil and gas, semiconductor chips, and power grid sectors. Nearly 4,300 stocks in Shanghai, Shenzhen, and Beijing markets declined.

Image source: 21 Finance Client

CPO and other computing hardware stocks continued to decline, with Vogt Photonics hitting the daily limit down, Tianfu Communications and DekeLi falling over 10%, and Robotech and Changxin Bochuang among the biggest losers.

Chemical stocks rallied again in the afternoon, with Zhongyi Da hitting the daily limit up, Zhongfu Shenying up 20cm, Sanfangxiang and Shuangxin Materials previously hitting the limit up, and Jilin Carbon Valley, Jilin Chemical Fiber, and Youfu Shares also rising. According to Shanghai Securities News, Zhongfu Shenying has broken through T1200-grade ultra-high-strength carbon fiber engineering technology, with strength exceeding 8,000 MPa, making it the world’s first company capable of mass-producing T1200-grade carbon fiber (hundred-ton level). This marks a milestone in China’s new materials sector.

In the afternoon, the fertilizer concept stocks continued to rise against the trend, with Jinjingda hitting two limit-ups in three days. Previously, Chitianhua experienced 15 days of seven limit-ups. Luzhou Tianhua, Nongda Technology, Chuanjinnuo, and Fubang Technology also gained. According to Caixin, Huaxin Securities pointed out that the situation in the Strait of Hormuz continues to ferment, with nearly one-third of urea and 44% of sulfur exports blocked globally. International fertilizer prices have been rising over the past two weeks. Rising natural gas prices have pushed up ammonia costs, and high sulfur prices support phosphate fertilizer costs.

The precious metals sector strengthened against the trend in the afternoon, with gains exceeding 2%, including Zhaojin Gold, Chifeng Gold, and Shandong Gold, all up over 3%.

The Nikkei 225 index closed down 0.09%, at 53,700.39 points; South Korea’s KOSPI index rose 1.63%, to 5,640.48 points.

In Hong Kong stocks, major indices weakened. As of the time of writing, the Hang Seng Tech Index turned red, with tech stocks plunging. Horizon Robotics fell nearly 4%, Huahong Semiconductor dropped nearly 4%, and stocks like Baidu, SMIC, and Tencent Holdings led declines. Alibaba briefly rose over 3%, but by the time of writing, it had fallen back to around 1%. According to Caixin, Alibaba is offering token quotas to employees to encourage the use of AI tools at work.

Oil and gas equipment stocks in Hong Kong strengthened in the afternoon. As of the report, Shandong Molong rose 5%, after an early session drop of 8%; CNOOC Petroleum’s decline narrowed from 10% to 4%; BQ Oil Services recovered its 10% decline; Sinopec Oilfield Service’s decline narrowed from 5% to 1%. In related markets, WTI crude oil futures rose by 5%, trading at $97.113 per barrel.