A-share Closing Review | Index Divergence: Sci-Tech 50 Falls Over 5%, Nuclear Power and Electric Grid Strengthen Against the Trend, Semiconductor Storage Chips Continue to Adjust

On August 3, the three major A-share indices collectively closed lower, with a significant divergence between the yellow and white lines. Small and mid-cap stocks outperformed large-cap weighted stocks overall. By the end of the trading day, the Shanghai Composite Index had dropped 0.59% to 3,809.66 points, the Shenzhen Component Index fell 0.96% to 13,448.29 points, the ChiNext Index declined 1.24% to 3,302.55 points, and the STAR 50 Index decreased 5.08% to 1,552.89 points. The BSE 50 fell 0.66% to 1,076.07 points. The total turnover of the Shanghai and Shenzhen stock exchanges for the day was 19,973.86 billion yuan, a decrease of 5,445.62 billion yuan compared to the previous trading day. In the entire market, 4,005 individual stocks rose, 1,466 fell, with 83 hitting the daily limit up and 9 hitting the daily limit down, resulting in an approximately 72% increase ratio. In terms of sectors, controllable nuclear fusion/nuclear power, grid equipment, wind power equipment, motors, papermaking, photovoltaic equipment, and agriculture sectors led the gains; while the glass fiber, semiconductor, electronic chemicals, memory chips, photolithography machines, and coal mining sectors faced significant losses. Drivers The market exhibited a structural divergence of "weak indices, strong individual stocks," with the main indices declining primarily due to the pullback in large-cap technology sectors such as semiconductors, while the majority of small and mid-cap stocks recorded gains. The nuclear power/controllable nuclear fusion sector experienced a comprehensive surge, with stocks such as Jiusheng Electric, Jiangsu Libert INC., Hefei Metalforming Intelligent Manufacturing, RongFa Nuclear Equipment, and China Nuclear Engineering Corporation hitting the daily limit up, catalyzed by the decision made in the State Council executive meeting on July 31 to approve four nuclear power projects totaling 8 new units, with a total investment exceeding 170 billion yuan. The electric equipment chain, including grid equipment, wind power, and motors, also strengthened, with sector gains exceeding 2.5%. The AI application sector remained actively speculative, with Jiangsu Chuanzhiboke Education Technology achieving six consecutive limit-ups, Tianyu Digital Technology Group and Cashway Fintech reaching two consecutive limit-ups. The public beta testing of the DeepSeek-V4-Flash API began on July 31, and the national supercomputing internet launched model invocation and download services on August 2. The semiconductor industry chain continued to adjust, with the STAR 50 Index declining 5.08%. GigaDevice Semiconductor Inc. hit the daily limit down, Shanghai Vital Deeptech also hit the limit down, Hangzhou Changchuan Technology fell 12.41%, Wuhan Jingce Electronic Group dropped 12.57%, Kingsemi Co., Ltd. decreased by 11.04%, and Piotech Inc. fell by over 10%. The Korean KOSPI closed down 5.13% that day, with Samsung Electronics and SK Hynix both dropping nearly 9%, leading to a simultaneous weakness in overseas semiconductor sectors. The glass fiber sector fell 7.17%, with China Jushi Co., Ltd. hitting the daily limit down; the electronic chemicals sector saw Grace Fabric Technology also hit the limit down. In terms of popular sectors: 1. Nuclear Power/Controllable Nuclear Fusion: The sector experienced a comprehensive surge, with Jiusheng Electric, Jiangsu Libert INC., Hefei Metalforming Intelligent Manufacturing, RongFa Nuclear Equipment, and China Nuclear Engineering Corporation among over ten stocks hitting the daily limit up. The State Council's executive meeting on July 31 approved four nuclear power projects including Phase I of Zhanghua, Phase II of Jin Qimen, Phase III of Tai Pingling, and Phase I of Laiyang, totaling 8 new units and a total investment exceeding 170 billion yuan, catalyzing the nuclear power equipment industry chain. 2. Grid Equipment/Electric Power: The grid equipment sector rose 2.68%, with multiple stocks such as Jiusheng Electric, Tianjin Benefo Tejing Electric, and Lanzhou Greatwall Electrical hitting the daily limit up. The electric power sector increased by 1.11%, with Shenzhen Nanshan Power, Huadian Liaoning Energy Development, and Leshan Electric Power also hitting the limit up. The continuous advancement of new grid construction and the concentration of nuclear power project approvals have enhanced expectations for the electric equipment industry chain, providing support for the relevant sectors. 3. AI Applications: Jiangsu Chuanzhiboke Education Technology achieved six consecutive limit-ups, Tianyu Digital Technology Group and Cashway Fintech reached two consecutive limit-ups, and Xiamen Jihong Package Technology hit the daily limit up. Public beta testing for the DeepSeek-V4-Flash API began on July 31, and the national supercomputing internet launched model invocation and download services on August 2; the photovoltaic equipment sector rose 1.81%, with Tongwei Co., Ltd., Flat Glass Group, and Beijing Qianjing Landscape hitting the limit up. On July 31, the State Administration for Market Regulation began guidance on price compliance in the photovoltaic industry, supporting the sector. Adjusting Sectors The semiconductor sector fell 5.84%, with the memory chip direction experiencing significant declines. GigaDevice Semiconductor Inc. hit the daily limit down at 340.74 yuan, with a trading volume exceeding 23 billion yuan; Shanghai Vital Deeptech hit the limit down; Hangzhou Changchuan Technology fell 12.41%, Wuhan Jingce Electronic Group dropped 12.57%, Kingsemi Co., Ltd. decreased by 11.04%, and Piotech Inc. fell over 10%; Shenzhen Techwinsemi Technology fell 9.56%. The glass fiber sector fell 7.17%, with China Jushi Co., Ltd. hitting the daily limit down. The aforementioned areas had significant gains previously and faced major declines on the day. Overseas, the KOSPI closed down 5.13%, with Samsung Electronics and SK Hynix both dropping nearly 9%.