A-share Market Close Review | Both STAR and ChiNext Indices Fall Over 3%; Media and Oil & Gas Sectors Buck the Trend

On October 14, the three major A-share indices opened lower and fluctuated downward, continuing to decline in the afternoon, with the STAR and ChiNext indices leading the losses. As of the close, the Shanghai Composite Index fell 0.88% to 3767.23 points, the Shenzhen Component Index fell 1.97% to 12110.59 points, the ChiNext Index fell 3.10% to 2866.76 points, the STAR 50 Index fell 3.29% to 1380.26 points, and the BSE 50 Index fell 0.66% to 1002.01 points. The combined turnover of the Shanghai and Shenzhen markets was 1,414.391 billion yuan, a decrease of 261.526 billion yuan from the previous trading day. Among Shanghai and Shenzhen A-shares (excluding the BSE), 979 stocks rose, 4,496 fell, and 99 were flat, with 39 hitting the daily limit up and 13 hitting the daily limit down, and rising stocks accounting for about 17%. In terms of sectors, among Shenwan secondary industries, oilfield services engineering, publishing, digital media, film and cinema lines, and coal mining led the gains; glass and fiberglass, wind power equipment, communication equipment, consumer electronics, semiconductors, and batteries led the declines. In terms of concept sectors, copper-clad laminates led the gains, while memory chips and precious metals weakened. Driving factors The overnight global adjustment in the memory chip industry chain was the external backdrop for the weakness in the technology direction this round. From October 9 to 10, the 4th Integrated Chips and Chiplets Conference was held in Shanghai. ChangXin Memory Technologies President Cao Kanyu announced key R&D progress on the 4F DRAM architecture at the conference and said that a new generation of DDR5 RDIMM products is expected to be launched by the end of the year. On October 13, South Korea's KOSPI index closed down 5.46%, SK Hynix fell 10.09%, and Samsung Electronics fell 7.39%. Overnight, Micron Technology fell 3.62% in the U.S. stock market. On the day, A-share memory chip concept stocks fell 3.08%, and the semiconductor sector fell 3.20%. The media sector strengthened against the trend, driven by application data and thematic catalysts. According to Sensor Tower data, ByteDance's short drama app PineDrama surpassed 100 million cumulative downloads about nine months after launch, with about 7 million daily active users. Publishing, digital media, and film and cinema lines rose 2.83%, 2.75%, and 1.67%, respectively. The oil and gas direction was catalyzed by geopolitical events. Yemen's Houthi armed forces launched a missile attack on Saudi Arabia, and an office building in Saudi Aramco's headquarters compound was hit by a missile and caused a limited-scale fire. The oilfield services engineering sector rose 3.05%, ranking first among Shenwan secondary industries. China Oilfield Services rose 6.56%, and CNOOC Limited rose 4.26%. The copper-clad laminate and PCB direction was driven by third-quarter earnings forecasts. On the evenings of October 12 and 13, Guangdong Goworld, Baoding Technology, and Shenzhen Fastprint Circuit Tech successively disclosed earnings forecasts, expecting year-on-year growth in net profit attributable to parent companies for the first three quarters of 90.78%102.00%, 536.88%614.07%, and 204.20%227.02%, respectively. The copper-clad laminate concept rose 2.21%. The coal mining sector rose 1.41%. Shanxi Antai Group hit the daily limit up for the third time in five days, Zhengzhou Coal Industry & Electric Power hit the daily limit up, and Shaanxi Coal Industry and China Shenhua Energy rose 2.22% and 2.14%, respectively, reaching new stage highs. The combined turnover of the two markets was 1,414.391 billion yuan, a decrease of 261.526 billion yuan from the previous trading day, and rising Shanghai and Shenzhen A-shares accounted for about 17%. Hot sectors 1. [AI animated dramas and media] The media sector strengthened against the trend, with publishing up 2.83%, digital media up 2.75%, and film and cinema lines up 1.67%. Ciwen Media Co.,Ltd. and Thinkingdom Media both hit the daily limit up, extending to four consecutive limit-up days. IReader Technology hit the daily limit up (four limit-up days in seven days). Inly Media Co., Ltd, China Science Publishing & Media, and Xinhua Winshare publishing & Media hit the daily limit up. Fuchun Technology hit the 20CM daily limit up. Among them, Xinhua Winshare publishing & Media fell as much as 9.18% intraday and closed at the daily limit up. In terms of catalysts, according to Sensor Tower data, ByteDance's short drama app PineDrama surpassed 100 million cumulative downloads about nine months after launch, with about 7 million daily active users, making it one of the fastest-growing apps in the overseas short drama track. 2. [Oilfield services engineering] The oilfield services engineering sector rose 3.05%, ranking first among Shenwan secondary industries. China Oilfield Services rose 6.56%, BOMESC Offshore Engineering rose 6.15%, Shandong Xinchao Energy Corporation rose 5.29%, Offshore Oil Engineering rose 4.19%, and CNOOC Limited rose 4.26%. In terms of catalysts, security risks to energy facilities in the Middle East escalated. Yemen's Houthi armed forces launched a missile attack on Saudi Arabia, and an office building in Saudi Aramco's headquarters compound was hit by a missile and caused a limited-scale fire. 3. [Copper-clad laminates and PCB] The copper-clad laminate concept rose 2.21%. Guangdong Goworld hit the daily limit up, extending to two consecutive limit-up days. Baoding Technology hit the daily limit up at the open. Shenzhen Fastprint Circuit Tech rose 4.28%. In terms of catalysts, on the evenings of October 12 and 13, Guangdong Goworld, Baoding Technology, and Shenzhen Fastprint Circuit Tech successively disclosed first-three-quarter earnings forecasts, expecting year-on-year growth in net profit attributable to parent companies of 90.78%102.00%, 536.88%614.07%, and 204.20%227.02%, respectively. The copper-clad laminate industry maintained high prosperity, and PCB orders were full. Adjusting sectors Among Shenwan secondary industries on the day, glass and fiberglass fell 5.46%, and wind power equipment fell 5.32%, the two sectors with the largest declines. In wind power equipment, Dajin Heavy Industry hit the daily limit down for two consecutive trading days. Yinchuan Weili Transmission Technology and Luoyang Xinqianglian Slewing Bearing fell 12.02% and 12.51%, respectively. Shandong Shuangyi Technology fell 9.21%, and Titan Wind Energy fell 7.86%. The sector has fallen more than 9% cumulatively over the past five trading days. Communication equipment fell 4.50%, ranking among the top decliners among Shenwan secondary industries. The battery sector fell 3.09%. Shangshui Smartech, Shandong Sacred Sun Power Sources, and Foshan Golden Milky Way Intelligent Equipment fell 8.89%, 8.45%, and 7.02%, respectively. Semiconductors fell 3.20%, and consumer electronics fell 3.21%. Grinm Advanced Materials hit the daily limit down. The memory chip concept fell 3.08%, and precious metals fell 2.60%. The automobile concept fell 2.42%. Anhui Jianghuai Automobile Group Corp.,Ltd. and Haima Automobile fell 8.62% and 7.46%, respectively. Computing power hardware heavyweight stocks declined. Zhongji Innolight, Eoptolink Technology Inc., and Suzhou TFC Optical Communication fell 5.73%, 5.84%, and 7.17%, respectively.