A-share closing review | Innovation and entrepreneurship dropped over 3% leading the decline, while gold and coal strengthened against the trend, and computing hardware suffered a heavy blow.

On August 24, all three major A-share indices closed lower, with the ChiNext Index and the Sci-Tech 50 leading the decline. By the end of trading, the Shanghai Composite Index fell 0.59% to 3882.01 points, the Shenzhen Component Index dropped 2.13% to 13794.29 points, the ChiNext Index fell 3.21% to 3431.89 points, and the Sci-Tech 50 decreased 3.10% to 1602.34 points. The BSE 50 fell 2.02% to 1053.62 points. The total trading volume in the Shanghai and Shenzhen markets was approximately 2.01 trillion yuan, an increase of about 128.2 billion yuan compared to the previous trading day. In the entire market, 1460 stocks rose, while 3965 declined, with 48 stocks hitting the daily limit up and 11 hitting the daily limit down, resulting in a rise rate of about 26%. Sector-wise, coking coal (+5.39%), insurance (+2.58%), coal mining (+2.17%), agriculture (+2.06%), and precious metals (+1.38%) saw the largest increases; meanwhile, glass fiber (-5.30%), communication equipment (-5.21%), medical services (-4.31%), components (-4.18%), and semiconductors (-3.13%) experienced the largest declines. Driving factors On this day, the three major indices collectively closed lower, with the ChiNext Index falling 3.21% and the Sci-Tech 50 dropping 3.10% leading the decline, while the Shanghai Composite Index fell 0.59%, showing relative resilience. The total trading volume in the two markets was approximately 2.01 trillion yuan, up about 128.2 billion yuan from the previous day, and the proportion of stocks rising in the entire market was about 26%. In the coal sector, the first round of price increases for coking coal took effect on August 24 (wet quenched coal was raised by 50 yuan/ton, and dry quenched coal was raised by 55 yuan/ton). The main coking coal contract on the Dalian Commodity Exchange rose over 2%, reaching 1600 yuan/ton, a new high since October 2024. According to data from the National Bureau of Statistics, the national raw coal output in July was 340 million tons, down 10.1% year-on-year. In terms of precious metals, spot gold briefly broke through $4650 per ounce during the day, as the U.S. Treasury expanded the scale of long-term bond repurchases and the dollar weakened. In technology, semiconductor, communication equipment, and components sectors had significant declines, with Zhongji Innolight falling 7.72% and Suzhou TFC Optical Communication falling 8.63%. The Daily Economic News commented that there was "no significant negative news in the fundamentals" that day, while Jiangsu Asia-Pacific Light Alloy Technology showed weakness overall, and Hong Kongs Hang Seng Technology Index dropped nearly 4% during the session. In the shipping sector, the Iranian Strait of Hormuz Management Authority announced new navigation control regulations on August 23, compounded by the Panama Canal tightening daily ship passage quotas starting in September. Shanghai Zhonggu Logistics hit the daily limit up, and Shanghai Jinjiang Shipping (Group) Co., Ltd. rose over 8%. Popular sectors 1. [Coal] Coking coal and coal stocks moved against the trend, with the Shenwan Coking Coal sector rising 5.39%, ranking first among secondary industry increases. Shanghai Datun Energy Resources, Henan Dayou Energy, and Shanxi Meijin Energy hit the daily limit up, while China Coal Xinji Energy, Beijing Haohua Energy Resource, and Shaanxi Coal Industry followed suit. The catalyst was the implementation of the first round of price hikes for coking coal and the main coking coal contracts rising over 2%, touching 1600 yuan/ton, a new high since October 2024, with July national raw coal production falling 10.1% year-on-year. 2. [Precious Metals] Gold and silver stocks continued to strengthen. Hunan Silver, Baiyin Nonferrous Group, and Shenzhen China Bicycle hit the daily limit up, while Shengda Resources rose 8.88%. The catalyst for this was spot gold briefly breaking through $4650 per ounce, along with the U.S. Treasury expanding long-term bond repurchase scales and a weakening dollar. 3. [Agricultural Planting] Agricultural stocks were strong all day, with the Shenwan Agricultural sector rising 2.06%. Xinjiang Tianshan Animal Husbandry Bio-engineering hit the daily limit up, as did ShanDongDenghai Seeds, with QIULE SEEDS, Wanxiang Doneed, and Hainan Shennong Seed Industry Technology also rising. The catalyst was the UK Met Offices prediction on August 21 that this years El Nio phenomenon could be the strongest on record since modern meteorological records began. Shenwan Hongyuan Group indicated that there are expectations of reduced production and price increases for Shenzhen Agricultural Power Group. Adjusting sectors Sectors such as semiconductors, communication equipment, components, glass fiber, and medical services saw significant declines, with communication equipment dropping 5.21% and glass fiber falling 5.30%. In terms of individual stocks, Shenzhen Gongjin Electronics hit the daily limit down, while Zhongji Innolight fell 7.72%, Eoptolink Technology Inc. dropped 6.79%, Suzhou TFC Optical Communication declined 8.63%, and Cambricon fell 6.37%. These sectors had seen substantial gains prior, and on this day, they had the largest declines, indicating a clear rotation in the market.