A-share closing review | The ChiNext Index rose by 1.43% to lead the gains, gold stocks surged, while agriculture and pharmaceuticals fell sharply.

On August 21, all three major indices of the A-shares closed higher, with the ChiNext Index leading the gains. By the close, the Shanghai Composite Index rose by 0.04% to 3905.20 points, the Shenzhen Component Index increased by 0.87% to 14094.17 points, the ChiNext Index gained 1.43% to 3545.58 points, and the STAR 50 Index was up 0.04% to 1653.56 points, while the BSE 50 decreased by 0.57% to 1075.38 points. The total trading volume of the Shanghai and Shenzhen markets was approximately 1.879 trillion yuan, down by about 200.1 billion yuan compared to the previous trading day. Out of the 2505 stocks in the market, 2862 declined, with 57 hitting the daily limit up and 14 reaching the limit down, meaning that about 45% of stocks closed higher. Sector performance showed significant gains in precious metals (+4.64%), energy metals (+4.60%), communication equipment (+2.98%), components (+2.80%), and industrial metals (+2.42%); while agriculture (-4.81%), chemical pharmaceuticals (-4.33%), medical services (-3.75%), biological products (-3.63%), and Shenzhen Agricultural Power Group processing (-3.55%) saw the largest declines. Driving Factors On this day, the three major indices collectively closed higher, with the ChiNext Index up 1.43%, while the Shanghai Composite Index and the STAR 50 Index both rose by 0.04%, remaining essentially flat, and the BSE 50 was the only index to post a decline of 0.57%. The trading volume of both markets was about 1.88 trillion yuan, down approximately 200.1 billion yuan from the previous day. In the precious metals sector, U.S. stocks fell overnight, while spot gold rose to $4543.56 per ounce, marking a new high since June 1. On August 19, the U.S. Treasury announced a significant expansion of its long-term Treasury buyback program, with Treasury Secretary Janet Yellen signaling on August 20 that the repurchase scale might be further expanded, reinforcing expectations of a decline in long-term real interest rates, which boosted gold and silver stocks. In the lithium mining sector, the main contract for lithium carbonate on the exchanges reached a high of 157,500 yuan per ton, rebounding over 12% from the low at the beginning of the month, with lithium carbonate supply and demand remaining tight. YOUNGY Co., Ltd. reported a net profit of 1.002 billion yuan for the first half of the year, a year-on-year increase of over tenfold. In telecommunications, SK Hynix, along with the University of Virginia and others, published a paper on CPO co-packaging optical technology in Nature Electronics, and Eoptolink Technology Inc. disclosed a restricted stock incentive plan on the evening of August 20. In the pharmaceutical sector, there was notable divergence; CanSino Biologics Inc., Jenkem Technology, and Novoprotein Scientific Inc. reached their daily limit up, marking their second consecutive trading day of gains. The tumor vaccine concept rose by 6.24%, ranking first among concept sectors, while sectors such as chemical pharmaceuticals and medical services overall led to declines. Popular Sectors 1. Precious MetalsGold and silver stocks surged across the board, with the Shenwan precious metals sector rising by 4.64%, leading the secondary industry gains. Hunan Silver, Shengda Resources, Baiyin Nonferrous Group, Shenzhen China Bicycle, and Fuda Alloy Materials hit their daily limit up, while Chifeng Jilong Gold Mining rose by 7.22%, Beijing XIAOCHENG Technology Stock by 8.55%, and China National Gold Group Gold Jewellery by 5.85%. The catalyst for this was the rise of spot gold to $4543.56 per ounce, the highest since June 1, and the U.S. Treasury's expansion of the long-term Treasury buyback program, reinforcing expectations of declining long-term real interest rates. 2. Energy MetalsLithium mining concepts surged collectively, with the Shenwan energy metals sector rising by 4.60%. YOUNGY Co., Ltd. and Willing New Energy hit their daily limit up, with Canmax Technologies, Chengxin Lithium Group, and Dazhong Mining also following the upward trend. The catalyst was the main contract for lithium carbonate reaching a high of 158,500 yuan per ton, rebounding over 12% from the low on August 3, with lithium carbonate supply and demand remaining tight, and YOUNGY Co., Ltd. reporting a net profit growth of over tenfold year-on-year. 3. Communication EquipmentCPO and optical communication directions were active, with the Shenwan communication equipment sector rising by 2.98%. Fujian Star-net Communication, Tongding Interconnection Information, Raisecom Technology, and Suzhou K-Hiragawa Electronic Technology hit their daily limit up, while Eoptolink Technology Inc. increased by 6.76%, and Zhongji Innolight by 4.29%. This was catalyzed by SK Hynix publishing a paper on CPO co-packaging optical technology in Nature Electronics, and Eoptolink Technology Inc. disclosing its restricted stock incentive plan, with a goal of achieving revenue of at least 50 billion yuan by 2026. Declining Sectors Agriculture, chemical pharmaceuticals, medical services, biological products, and Shenzhen Agricultural Power Group processing recorded significant declines, with agriculture down 4.81% and chemical pharmaceuticals down 4.33%. Among individual stocks, QIULE SEEDS fell 15.21%, Luoniushan Co., Ltd. dropped 9.20%, and Harbin Medisan Pharmaceutical and Harbin Pharmaceutical Group fell by the daily limit. These sectors had previously seen significant gains and experienced notable declines that day, indicating clear sector rotation in the market.