A-share Closing Review | ChiNext Index Rallied Then Pulled Back, Closing Down 2.44%; STAR 50 Bucked the Trend, Up 0.73%

On November 12, the three major A-share indices collectively opened lower, rallied, then pulled back in the afternoon, with only the STAR 50 closing higher. The Shanghai Composite Index closed at 3,655.83 points, down 0.67%; the Shenzhen Component Index closed at 11,197.98 points, down 1.68%; the ChiNext Index closed at 2,509.43 points, down 2.44%; the STAR 50 closed at 1,309.84 points, up 0.73%; the BSE 50 closed at 908.07 points, down 1.65%. Combined turnover on the Shanghai and Shenzhen markets was RMB1.932077 trillion, up RMB255.798 billion from the previous trading day. Across the market, 875 stocks rose, 4,635 fell and 70 were flat, with 37 hitting the daily limit up and 6 hitting the daily limit down; advancers accounted for 15% of the market. By sector, fisheries, ground armaments, livestock breeding, beverages and dairy products, advertising and marketing, and semiconductors led the gains; precious metals, film and cinema circuits, gaming, media, telecommunications and non-ferrous metals led the declines. Drivers On the day, the STAR 50 hit an intraday high of 1,364.88 points, corresponding to a gain of 4.96%, before narrowing to close up 0.73%; the ChiNext Index rose as much as 1.87% intraday before closing down 2.44%; combined Shanghai and Shenzhen turnover expanded to RMB1.93 trillion. The semiconductor supply chain rallied in early trading, with the sector index up as much as 5.55% intraday. Recent news included Alibaba's announcement on the evening of November 10 on the Hong Kong Stock Exchange of a proposed spin-off and separate listing of its wholly owned subsidiary T-Head on the Main Board; T-Head had already submitted its listing application confidentially on September 11, 2026. SEMI's quarterly report released on November 4 showed global silicon wafer shipments rose 13.4% year-on-year in the third quarter. The precious metals sector came under pressure from international gold prices, with spot gold falling below US$4,000/oz in the early hours of November 12 Beijing time and closing at US$3,987.24; the market has fully priced in a 25-basis-point rate hike by the Federal Reserve in December, and the 10-year US Treasury yield has recently risen to the 5% mark. The banking sector closed up 0.36%, with Industrial and Commercial Bank of China up 1.88%; Industrial and Commercial Bank of China, Agricultural Bank Of China and The People's Insurance announced on the evening of November 11 that their A-share private placement applications had passed review by the Shanghai Stock Exchange. The central bank's third-quarter 2026 monetary policy implementation report, released on November 11, proposed stepping up implementation of the two monetary policy tools supporting the capital market and making good use of the bond market non-bank large redemption swap facility. Hot sectors [Computing power chips] The semiconductor sector index closed up 0.55%, and the STAR 50 became the only major index to close higher on the day. Ningbo TIP Rubber Technology hit the daily limit up for a third consecutive session (+10.00%), Enflame Technology rose 13.13% to a record high since listing, Cambricon rose 8.11%, and Hygon Information Technology rose 3.07%. The catalyst was Alibaba's announcement on the evening of November 10 of a proposed spin-off and separate Hong Kong listing of T-Head; as of April 2026, T-Head's Zhenwu series AI chips had shipped a cumulative 560,000 units and served more than 650 enterprise customers; SEMI's November 4 report showed global silicon wafer shipments rose 13.4% year-on-year in the third quarter. [Ground armaments] The sector index closed up 3.48%, ranking second among Shenwan level-2 industries by gain and one of the few directions to strengthen against the market on the day. Anhui Greatwall Military Industry hit the daily limit up on its first board (+10.02%), North Long Dragon New Materials Tech rose 11.45%, Hunan Tyen Machinery rose 4.23%, and Jianshe Industry Group rose 1.93%. Stocks tied to the armaments restructuring theme strengthened across the board, with no new announcements or policy disclosures found in public sources for the sector on the day. [Fisheries] The sector index closed up 3.56%, ranking first among Shenwan level-2 industries by gain. Shandong Homey Aquatic Evelopment hit the daily limit up (+10.22%), Shandong Oriental Ocean Sci-Tech hit the daily limit up (+10.02%, its 10th limit-up in 17 trading sessions), Baiyang Investment Group, Inc. hit the daily limit up (+9.98%), and Zoneco Group rose 2.67%. No new industry policies or announcements were disclosed for this direction on the day, and aquaculture stocks showed localized co-movement. Declining sectors The precious metals sector index closed down 6.85%, ranking first among Shenwan level-2 industries by decline, with Shanjin International Gold down 9.31%, Chifeng Jilong Gold Mining down 8.32%, Western Region Gold down 6.71% and Shandong Gold Mining down 6.53%; the sector had risen 16.97% cumulatively from November 3 to November 11 and posted the largest decline on the day. The film and cinema circuit sector index closed down 5.36%, with Shanghai Film hitting the daily limit down (-9.99%), Zhejiang Huace Film & TV down 13.97%, and Cultural Investment Holdings touching the daily limit up intraday before closing down 1.59%; the sector had risen 13.72% cumulatively from October 15 to November 11. The gaming sector index closed down 4.89%, while the telecommunications and non-ferrous metals sector indices each closed down 3.01%.