A-share closing review | ChiNext index opened high and continued to rise by 3.41%, with a collective outbreak in computing hardware.

On September 7, the three major indices of A-shares collectively closed higher, with the ChiNext Index leading the gains after a strong opening. The Shanghai Composite Index surged before pulling back to close essentially flat. By the end of the trading day, the Shanghai Composite Index reported 3,932.70 points, up 0.07%; the Shenzhen Component Index reported 13,774.91 points, up 1.91%; the ChiNext Index reported 3,398.68 points, up 3.41%; the STAR 50 reported 1,615.53 points, up 2.42%; and the BSE 50 reported 1,096.85 points, up 0.85%. The total trading volume of the Shanghai and Shenzhen markets reached 1,946.019 billion yuan, decreasing by approximately 84.649 billion yuan compared to the previous trading day. In the overall market, 3,167 stocks rose, 2,196 fell, 95 reached the daily limit up, and 2 hit the daily limit down, with the share of rising stocks at about 57%. In terms of sectors, CPO (Collective Photonic Modules), PCB, components, electronic chemicals, optical modules, memory chips, and agriculture-related stocks had the largest gains; meanwhile, precious metals, insurance, coal, securities, and kitchen and bathroom appliances saw the most significant declines. Drivers On that day, the ChiNext Index led the gains while the Shanghai Composite Index closed essentially flat, indicating a notable divergence in market styles. First, there was a collective surge in computing hardware sectors, with CPO, optical modules, PCB, components, electronic chemicals, and memory chips among the leading gainers. Zhongji Innolight surged over 10%, topping the trading volume in both markets, and its market value returned to 1 trillion yuan. Goldman Sachs began coverage of Zhongji Innolight's H-shares on September 7 with a "Buy" rating and a 12-month target price of 3,267 Hong Kong dollars. This was bolstered by OpenAI's release of GPT-6 Astra, which boosted AI investment sentiment, and last Friday's gains in the U.S. equity communication sector, with the Philadelphia Semiconductor Index rising over 3%. Second, the agricultural sector was repeatedly active, with Gansu Yasheng Industrial reaching three consecutive limit ups and Gansu Dunhuang Seed Group and Jinjian Cereals Industry hitting their daily limits. On September 7, six departments, including the Ministry of Agriculture and Rural Affairs, jointly issued the "Implementation Plan for Improving the Input Mechanism for Rural Revitalization," prioritizing rural development. Third, the large consumer sector saw a volatile rise, led by retail and tourism, with Zhongbai Holdings Group, Nanjing Central Emporium (Group) Stocks, Baida Group Co., Ltd., Guilin Tourism Corporation, and Huatian Hotel Group all hitting their daily limits. The Ministry of Commerce and seven other departments released implementation opinions on August 31 to promote the expansion and upgrading of commodity consumption. Fourth, the media sector showed a volatile rise, with Heilongjiang Publishing & Media Holdings hitting six consecutive limit ups and China Publishing & Media Holdings reaching two consecutive limit ups. Popular Sector Performance 1. CPO/Optical Modules: The sector collectively surged. Zhongji Innolight rose over 10%, leading the trading volume across both markets. Eoptolink Technology Inc. rose 8.08%, Suzhou TFC Optical Communication rose 7.36%, Yuanjie Semiconductor Technology rose 16.10%, and Shenzhen Xunjiexing Technology Corp. hit its daily limit up of 20%. Goldman Sachs began coverage of Zhongji Innolight's H-shares on September 7 with a "Buy" rating and a 12-month target price of 3,267 Hong Kong dollars, combined with the boost from OpenAI's release of GPT-6 Astra and last Friday's gains in the U.S. optical communication sector. 2. Agriculture: Gansu Yasheng Industrial reached three consecutive limit ups, while Gansu Dunhuang Seed Group and Jinjian Cereals Industry hit their daily limits. On September 7, six departments including the Ministry of Agriculture and Rural Affairs jointly issued the "Implementation Plan for Improving the Input Mechanism for Rural Revitalization," which clarifies that by 2030, a reasonably structured, scientifically informed, and quality-efficient input mechanism for rural revitalization will be basically established. 3. Large Consumption: Retail and tourism led the rise, with Zhongbai Holdings Group, Nanjing Central Emporium (Group) Stocks, Baida Group Co., Ltd., Guilin Tourism Corporation, and Huatian Hotel Group all hitting their daily limits. The Ministry of Commerce and seven other departments released implementation opinions on August 31 to promote the expansion and upgrading of commodity consumption, proposing that by 2030, the total retail sales of consumer goods will reach approximately 60 trillion yuan. Declining Sectors Precious metals, insurance, coal, securities, kitchen and bathroom appliances, and other sectors had the largest declines, with precious metals opening low and continuing to fall. Among individual stocks, Hunan Silver fell 4.63%, Xiangcai Co., Ltd. decreased 5.31%, China Coal Energy dropped 4.28%, Zhaojin International Gold fell 3.92%, and Shandong Gold Mining was down 3.83%. Precious metals and insurance sectors had previously seen substantial rises and were among the biggest decliners on that day.