A-share Market Close Review | Three Major Indices Close Slightly Higher on Reduced Volume; Solid-State Battery and Real Estate Sectors See Wave of Limit-Up Stocks

On September 29, the three major A-share indices opened lower and moved higher, fluctuating within a narrow range throughout the day before edging down slightly in late trading. The market showed a pattern of modest index gains, broad-based stock advances, and significantly shrunken volume ahead of the holiday. As of the close, the Shanghai Composite Index stood at 3,830.45 points, up 0.18%; the Shenzhen Component Index at 12,901.95 points, up 0.34%; the ChiNext Index at 3,142.56 points, up 0.09%; the STAR 50 at 1,569.34 points, up 0.86%; and the BSE 50 at 1,032.36 points, up 0.56%. Combined turnover on the Shanghai and Shenzhen exchanges was 1,409.198 billion yuan, down 293.602 billion yuan from the previous trading day, hitting a new low since July 8, 2025. Across the entire market, 3,471 stocks rose, 1,933 declined, and 167 were flat, with 57 hitting the daily limit-up and 12 hitting the limit-down. Advancing stocks accounted for approximately 62%. By sector, real estate development, real estate services, digital media, publishing, components, and batteries led the gains; petroleum and petrochemicals, coal, lab-grown diamonds, glass substrates, gas, and planting led the declines. Drivers The day's market action was shaped by several verifiable factors: First, the indices edged higher within a narrow range, with the Shanghai Composite up 0.18%, the Shenzhen Component up 0.34%, and the STAR 50 up 0.86%, while combined turnover on the Shanghai and Shenzhen exchanges was 1,409.198 billion yuan, down 293.602 billion yuan from the previous trading day, hitting a new low since July 8, 2025. Advancing stocks accounted for approximately 62% of the market, with individual stock performance stronger than the indices. Second, the State Council executive meeting was held on September 28. While studying work related to enhancing the intensity and effectiveness of macro policy, the meeting noted the need to increase countercyclical adjustment of macro policy, roll out a batch of pragmatic and effective incremental policies, and study and introduce policy measures to stabilize the real estate market and promote employment and income growth. Third, seven departmentsthe Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Transport, the Ministry of Commerce, the State Administration for Market Regulation, the National Energy Administration, and the National Railway Administrationjointly issued the "15th Five-Year Plan for the Development of the New Battery Industry" on September 28, proposing that by 2030 all-solid-state batteries achieve initial large-scale application and long-life lithium batteries reach a cycle life of 15,000 cycles, with 19 key tasks deployed across five areas including full-chain innovation and development and industrial transformation and upgrading. Fourth, the Shanghai Housing and Urban-Rural Development Commission and three other departments jointly issued the "Implementation Opinions on Implementing the Notice on Improving the Commodity Housing Sales System," specifying six measures including strengthening pre-sale management and orderly implementing sales of completed homes, effective from September 28, 2026. Fifth, recent research reports from multiple institutions noted that with upstream raw material prices continuing to rise, PCB (printed circuit board) manufacturers have successively initiated re-quoting. Sectors in Focus 1. Solid-state batteries: The concept sector strengthened throughout the day, with the battery industry index and the solid-liquid battery concept index closing up 0.44% and 3.19% respectively. WUHAN LAND hit the 30CM limit-up (+29.98%), Shangshui Smartech hit the 20CM limit-up (+20.00%), and Shanghai Emperor of Cleaning Hi-Tech (+10.01%), Gotion High-tech (+10.01%), Jinlongyu Group (+10.01%), Veken Technology (+10.05%), and Jiangsu Transimage Technology (+10.03%) also hit the limit-up. In terms of catalysts, seven departments including the Ministry of Industry and Information Technology jointly issued the "15th Five-Year Plan for the Development of the New Battery Industry" on September 28, proposing that by 2030 all-solid-state batteries achieve initial large-scale application. 2. Real estate: The sector strengthened collectively, with the real estate development industry index closing up 4.16% and real estate services up 2.70%. Cinda Real Estate (+10.10%), Zhuhai Huafa Properties (+10.07%), Hangzhou Binjiang Real Estate Group (+10.00%), ShenZhen Properties & Resources Development (Group) Ltd. (+9.98%, second consecutive limit-up), and China Vanke Co., Ltd. (+9.97%) hit the limit-up, while Shenzhen SDG Service rose 13.49%. In terms of catalysts, the State Council executive meeting on September 28 noted the study and introduction of policy measures to stabilize the real estate market and promote employment and income growth. On the same day, four Shanghai departments jointly issued the "Implementation Opinions on Implementing the Notice on Improving the Commodity Housing Sales System," effective from that day. 3. PCB/components: The sector led the gains, with the components industry index closing up 2.51% and the copper-clad laminate concept up 3.75%. Shenzhen Xunjiexing Technology Corp. hit the 20CM limit-up (+20.01%), while Changzhou Aohong Electronics (+10.00%), Aoshikang Technology (+10.00%), Guangdong Ellington Electronics Technology (+9.98%), Guangdong Goworld (+10.01%), and Suntak Technology (+9.99%) also hit the limit-up. In terms of catalysts, research reports from multiple institutions noted that with upstream raw material prices continuing to rise, PCB manufacturers have successively initiated re-quoting, and the third quarter of 2026 is expected to mark the starting point for profitability improvement in the sector. 4. Culture and media/AI applications: The sector was active, with the publishing industry index closing up 3.17%, digital media up 3.67%, and the AI marketing concept up 3.55%. China Publishing & Media Holdings (+10.07%), Xinhua Winshare Publishing & Media (+9.99%), IReader Technology (+10.00%), Inly Media Co., Ltd. (+10.01%), and Super Telecom (+10.02%) hit the limit-up, while Beijing Zhidemai Technology rose 10.71%. Among them, Shanghai Xinhua Media (+10.05%) opened at the limit-up and extended its winning streak to six consecutive limit-up sessions. Sectors in Decline The day's decliners were concentrated in cyclical resources and some recently popular concepts. The petroleum and petrochemicals industry index closed down 0.38%, coal down 1.19%, coal mining down 1.00%, and gas down 1.19%. The lab-grown diamond concept fell 2.70%, and glass substrate packaging dropped 3.38%: Henan Huanghe Whirlwind fell 9.70%, WG Tech (JiangXi) Group fell 9.39%, Caihong Display Devices fell 7.80%, and WanXiang Doneed fell 0.82%. These sectors posted the largest declines on the day, with petroleum and petrochemicals and coal having already recorded some gains earlier and leading the declines on the day.