A-share Closing Review | Indices plunged across the board, with the Sci-Tech Innovation 50 dropping nearly 7%, while the banking and coal sectors resisted the decline.

On August 19, the A-shares opened lower and declined further in the afternoon, with the three major indices collectively plummeting. The Sci-Tech 50 index fell 6.89%, leading the major indices. By the close, the Shanghai Composite Index was down 2.40% at 3894.42 points, the Shenzhen Component Index fell 5.01% to 13890.15 points, the ChiNext Index dropped 6.26% to 3473.49 points, the Sci-Tech 50 index fell 6.89% to 1667.52 points, and the BSE 50 index decreased by 4.90% to 1082.19 points. The total turnover of the Shanghai and Shenzhen markets was approximately 25,110.43 billion yuan, an increase of about 1,102.68 billion yuan compared to the previous trading day. Only 449 stocks in the entire market rose, while 5,069 fell, with 38 hitting the daily limit up and 130 hitting the limit down. The proportion of rising stocks was about 8%. In terms of sectors, coking coal II (+7.56%), kitchen and bath appliances (+4.56%), refining and trading (+2.08%), joint-stock banks II (+1.91%), city commercial banks II (+1.80%), and state-owned large banks II (+1.70%) all saw gains against the trend; meanwhile, electronic chemicals II (-9.07%), components (-9.04%), glass and fiberglass (-8.96%), communication equipment (-8.66%), and semiconductors (-7.57%) suffered significant losses. Additionally, Yushu Technology (N Yushu), dubbed the "first humanoid Siasun Robot & Automation stock," debuted on the Sci-Tech Innovation Board, closing with a substantial increase of 460.34% at 845.00 yuan, with an initial price of 150.80 yuan. Driving Factors On this day, the three major indices opened lower and continued to drop, with the ChiNext Index falling 6.26% and the Sci-Tech 50 dropping 6.89% leading the declines. The total turnover of both markets was about 2.51 trillion yuan, an increase of about 1103 billion yuan compared to the previous day. Overnight, the three major U.S. stock indices all closed lower, with the Dow Jones falling 0.22%, the S&P 500 down 0.69%, and the Nasdaq down 1.33%. The Philadelphia Semiconductor Index dropped 4.98%, with memory chip stocks like SanDisk and Seagate Technology falling more than 9%. The yield on 30-year U.S. Treasuries surged to 5.3%, a new high since 2007. China Securities Co., Ltd. noted that rising long-end U.S. Treasury yields create valuation pressure on overvalued growth sectors. OpenAI disclosed second-quarter revenues of $6.7 billion, a slight increase from $5.7 billion in the first quarter, while losses further widened. The market is concerned that the revenue growth of downstream large models might slow, leading to expanded losses and potential reductions in purchases of servers, optical communication, and memory chips. Asian Pacific stock markets plummeted, with the South Korean Composite Index down over 5%. SK Hynix fell over 9%, and Samsung Electronics dropped over 7%. The Nikkei 225 Index decreased by about 3%. In the market, technology growth sectors such as semiconductors, communication equipment, components, glass and fiberglass, and electronic chemicals experienced significant declines, while coking coal, banks, refining and trading, and kitchen and bath appliances saw gains against the trend. Popular Sectors 1. **Banking**: The banking sector showed strength against the trend, with state-owned large banks II up 1.70%, joint-stock banks II up 1.91%, and city commercial banks II up 1.80%. Agricultural Bank of China rose by 2.58%, CITIC Bank by 4.48%, and Bank of Nanjing by 2.53%. In news, commercial banks reported their net interest margin increased on a quarter-over-quarter basis for the first time in 17 quarters, suggesting a turning point for the industry's net interest margin may have been reached. 2. **Coal/Coke**: The coking coal II sector increased by 7.56%, leading the gains in the Shenwan secondary industry classification. Baotailong New Materials, Henan Dayou Energy, and Shaanxi Heimao Coking hit the daily limit, while North Huajin Chemical Industries rose by 9.98%. Rising international oil prices boosted the energy sector, with Brent crude exceeding $90, and PetroChina up 2.66%. 3. **Agricultural Planting**: The agricultural sector continued to be active, with Jinjian Cereals Industry and Hainan Jingliang Holdings hitting the daily limit, Xinjiang Tianshan Animal Husbandry Bio-engineering rising by 12.19%, and China Agriculture Development Seed Group increasing by 5.16%. Previously, JPMorgan warned that the next round of global food crises could erupt next year, coupled with predictions from the national climate center that a super El Nio event will occur this year. Adjustment Sectors Semiconductors, communication equipment, components, glass and fiberglass, and electronic chemicals all experienced significant declines. In the semiconductor sector, GigaDevice Semiconductor Inc. fell by 7.56%, JCET Group Co., Ltd. by 8.99%, Wuxi Taiji Industry by 8.17%, and Hua Hong Grace Semiconductor by 11.92%. In the communication equipment sector, Zhongji Innolight dropped 9.36%, and Hengtong Optic-Electric fell 9.94%. In the components sector, Guangdong Fenghua Advanced Technology decreased by 9.99%. These sectors had previously seen significant gains and led the declines on this day, indicating a clear rotation in the market.