On August 31st, the Chinese A-share market opened lower and continued its downward trajectory, with all three major indices extending losses at the start of trading. The Shenzhen Component Index and the ChiNext Index both fell more than 1%, while AI applications and computing hardware stocks bucked the trend with active trading. The real estate sector spiked higher at the open before paring gains, while non-ferrous metals, photovoltaic, and biopharmaceutical sectors entered a phase of decline.

Hong Kong stocks also opened lower and sustained the slide, with both the Hang Seng Index and the Hang Seng Tech Index dropping over 1%. Heavyweight tech stocks broadly declined, and memory chip shares also retreated. The biopharmaceutical sector led losses, with the Hang Seng Biotechnology Index plunging more than 3%. In the bond market, treasury bond futures traded with a downward bias. In commodities, most domestic commodity futures advanced.

Core Market Performance:

A-shares: As of the time of writing, the Shanghai Composite Index fell 0.37%, the Shenzhen Component Index dropped 1.02%, and the ChiNext Index lost 1.24%.

Hong Kong Stocks: As of writing, the Hang Seng Index fell 0.88%, and the Hang Seng Tech Index declined 1.28%.

Bond Market: Treasury bond futures declined across the board. As of writing, the 30-year main contract rose 0.08%, the 10-year main contract slipped 0.01%, the 5-year main contract fell 0.02%, and the 2-year main contract declined 0.01%.

Commodities: Domestic commodity futures were broadly higher. As of writing, crude oil surged over 6%, coking coal gained 5%, while asphalt, fuel oil, and lithium carbonate rose 3%. Coke added 2%, and glass, alumina, hot-rolled coils, rebar, and manganese silicon rose over 1%. Pulp, eggs, the shipping index, iron ore, caustic soda, soybean meal, and aluminum on the Shanghai bourse all trended higher. Conversely, rubber, stainless steel, industrial silicon, and copper on the Shanghai exchange fell, while tin, nickel, platinum, and rapeseed dropped over 1%. Gold, polysilicon, and silver lost more than 3%.

09:57

The banking sector moved steadily higher, with Bank of China rising over 3% and hitting a new historical high. Bank of Beijing, Qilu Bank, Postal Savings Bank, Bank of Changsha, and China Construction Bank also rallied.

09:51

The PCB concept rebounded with strength, as Qiangda Circuit gained over 10%. Shengyi Technology, Honghe Technology, Yihao New Materials, Nan Ya New Materials, Guanghe Technology, and Zhongying Technology followed suit.

During early trading, the CPO concept recovered, with the OCS direction leading the gains. Tengjing Technology and Dekeli both climbed over 10%, while Luobo Special Equipment, Lianxun Instruments, Guangku Technology, and Huamao Technology advanced alongside them.

09:41

In early trades, the on-device AI concept was active, with Rockchip hitting the daily limit up. Megasino, Fenda Technology, Allwinner Technology, Bocom Integration, Espressif Systems, and Fibocom all followed with gains.

09:36

Liquid cooling server concepts performed well, with Tongfei Co., Ltd. up over 10% and Hai'ou Shares touching the daily limit. Xinpeng Shares, Qiangrui Technology, Dayuan Pump Industry, Yimikang, and Binglun Environment all joined the upward move.

09:33

Extending last week's adjustment, the CRO concept fell in early trading. Baihua Medicine hit the limit down, Puruis and Wanbang Medicine lost over 10%, while Cansino, Jinan Biologics, Chengdu Lead-Go, and Yiqiao Shenzhou also declined.

09:27

The real estate sector opened sharply higher, with Woaiwojia, Tefa Service, Shi Lianhang, Financial Street, Xiangjiang Holdings, Shenwu Property A, and Zhongjiao Development opening at their daily limit up.

On the news front, on the evening of August 28th, the China Securities Regulatory Commission (CSRC) issued "Opinions on Capital Markets Supporting the Construction of a New Model for Real Estate Development," introducing a comprehensive "five-dimensional financing package" covering equity, mergers and acquisitions, bonds, asset securitization, and private real estate funds, aimed at fully unblocking funding bottlenecks for real estate enterprises.

09:26

The Shanghai Composite Index opened 0.65% lower, while the ChiNext Index fell 1.67%. Gold and semiconductor sectors adjusted, whereas real estate, seed industry, coal, oil & gas, and petrochemical sectors strengthened.

09:21

The Hang Seng Index opened 0.64% lower, and the Hang Seng Tech Index slid 0.42%. Leading the losses were SMIC, Hua Hong Semiconductor, Lenovo Group, and BYD Electronic.