A-shares at noon | The Shanghai Composite Index fell nearly 2%, and the ChiNext Index dropped nearly 5%, while coal stocks rose against the trend.

On August 19, the three major A-share indexes opened lower collectively, with the market declining in the early session, showing a differentiation pattern of "indexes collectively plunging, individual stocks generally falling, while defensive sectors such as coal and real estate held up relatively well." By the midday close, the Shanghai Composite Index was down 1.96% at 3,912.17 points, the Shenzhen Component Index fell 3.97% to 14,041.76 points, and the ChiNext Index dropped 4.98% to 3,520.97 points; the STAR Market 50 Index fell 6.07%, and the BSE 50 Index was down 3.7%. Over 4,900 stocks in the market declined, with only around 580 stocks rising, 31 reaching their daily limit up, and 36 hitting their daily limit down. The total trading volume of the Shanghai and Shenzhen markets for the half-day was approximately 1.62 trillion yuan, a decrease of about 18.2 billion yuan compared to the previous trading day. Market Overview On the upside, sectors such as coal, banking, petroleum and petrochemicals, and real estate held up relatively well. On the downside, sectors including semiconductors, CPO, memory chips, humanoid robots from Siasun Robot & Automation, and electronic chemicals led the declines. Overall, influenced by the overnight plunge in U.S. tech stocks, market risk aversion increased, with capital fleeing high-level technology sectors to seek refuge in defensive sectors like coal, banking, and petroleum. Hot Sectors 1. Coal Sector Rises Against the Trend The coal sector opened high and continued to rise, with Baotailong New Materials, Shaanxi Heimao Coking, Henan Dayou Energy, and Shanxi Meijin Energy hitting their daily limit, while Zhengzhou Coal Industry & Electric Power, Liaoning Energy Industry, Yunnan Coal & Energy, and Anhui Hengyuan Coal Industry and Electricity Power followed suit. Commentary: On August 18, mainstream coking companies in Hebei and Shanxi issued letters to raise the coke prices by 50-55 yuan/ton, set to take effect from midnight on the 20th; data from the National Bureau of Statistics showed that the industrial raw coal output in July was 343 million tons, a new low since October 2021, down 10.1% year-on-year, marking the largest decline since November 2016; coupled with the peak summer high temperatures driving up electricity demand. 2. Real Estate Sector Active Against the Trend The real estate sector was active, with 5i5j Holding Group and Nacity Property Service Group hitting their daily limit, while companies in the real estate supply chain such as Zbom Home Collection, ZYF Lopsking Material Technology, and Guangdong Hotata Technology Group also rose. Commentary: On August 18, the State Council issued the "Decision on Amending the 'Regulations on the Management of Housing Provident Fund'", effective from September 20, 2026, which eliminates the income threshold for extracting housing provident funds to pay rent. It adds circumstances for withdrawal, such as for renovations of self-occupied housing and payment of property fees for self-occupied housing, and supports flexible employment workers' participation in the housing provident fund system. 3. Petroleum and Petrochemical Sector Supported by Oil Prices The petroleum and petrochemical sector saw significant gains, paralleled by movements in shipping concepts, with Nanjing Port hitting its daily limit. Commentary: Negotiations stalled following the expiration of the U.S.-Iran memorandum on August 17, causing disruptions in shipping through the Strait of Hormuz, resulting in rising international oil prices; Brent crude oil jumped to about $91 per barrel, and WTI crude oil rose to approximately $85 per barrel, with rising oil prices supporting the petroleum and petrochemical and shipping sectors. 4. Banking Sector Rises Against the Trend The banking sector saw slight gains, with CITIC BANK, Bank of Chengdu, and Bank of Nanjing leading the increases. Commentary: Overnight, all three major U.S. stock indexes closed lower, with the Philadelphia Semiconductor Index plunging 4.98%, and the yield on 30-year U.S. Treasury bonds rising to 5.31%, the highest since 2007, indicating a contraction in global risk appetite, with funds shifting to high-dividend defensive sectors such as banking.