Market Overview: Consolidation on Lower Volume
China's A-share market experienced consolidation with mixed index performances. The Shanghai Composite Index edged up 0.29% to close at 4114 points, the Shenzhen Component Index rose 0.09%, while the ChiNext Index fell 0.7%. The total market turnover was 2.73 trillion yuan, a significant decrease of 324.3 billion yuan from the previous session, indicating increased caution after recent rallies. Over 3,500 stocks advanced, reflecting decent market sentiment.
Sector Focus: Clear Shift Between Old and New Drivers
1. Policy-Driven New Infrastructure Leads Gains: The State Grid's announcement of an estimated 4 trillion yuan in fixed asset investment during the "15th Five-Year Plan" period ignited the UHV (Ultra-High Voltage), power grid equipment, and smart grid sectors. Stocks like China XD Electric(601179.SH), Baobian Electric(600550.SH), Pinggao Electric(600312.SH) surged by the 10% daily limit, becoming the market's brightest spot.
2. Safe-Haven Demand Boosts Precious Metals: Geopolitical events, including U.S. President Trump's threat of additional tariffs on Europe, pushed international gold and silver prices to record highs, lifting the A-share precious metals sector. Sichuan Gold(001337.SZ), Zhaojin Mining(600547.SH) hit the limit-up, while Zhongjin Gold(600489.SH), Western Gold(601069.SH) followed higher.
3. Tech Growth Under Pressure, AI Concepts Retreat: Previously hot sectors like Kimi concept, AI training data, and state-owned cloud computing saw sharp declines. People.cn(603000.SH), Visual China Group(000681.SZ) fell by the 10% daily limit, and Ruijie Networks(301165.SZ) plunged over 12%, signaling capital outflow from some high-flying themes.
4. Other Highlights: Sectors like commercial aerospace, duty-free, and tourism & hotels also showed strength.
External and Liquidity Observations
European equity futures fell due to trade friction concerns. In Asia, South Korean and Taiwanese stocks hit record highs, with TSMC's new peak highlighting the continued strength of the global tech supply chain. In contrast, while A-share turnover remained high at 2.7 trillion yuan, the notable shrinkage suggests the market may enter a short-term consolidation phase.
Outlook
The market's consolidation and sector divergence following a rapid advance are characteristic of a technical pause. Sectors like UHV (representing new infrastructure) and precious metals (driven by geopolitics) offer clear structural opportunities. The short-term pullback in AI and other tech themes warrants close monitoring of earnings delivery. Investors should watch volume trends and policy developments to navigate sector rotations.
This article does not constitute any investment advice. The stock market involves risks, and investing requires caution!