A-share Opening Brief | Shanghai Composite Index opened down 0.65%, with non-ferrous metals leading the decline while real estate strengthened.

On August 31, the Shanghai Composite Index opened down 0.65% at 3926.53 points, the Shenzhen Component Index opened down 1.35% at 13764.41 points, the ChiNext Index opened down 1.67% at 3367.04 points, and the STAR Market 50 opened down 2.34% at 1623.20 points. As of 9:33 AM, a total of 1168 stocks in the two markets rose, 4137 fell, and 246 remained flat. The sectors seeing the largest gains included real estate services, digital media, real estate development, decoration, engineering machinery, and large state-owned banks; the biggest losses were seen in non-ferrous metals, biomedicine, photovoltaic equipment, and jewelry. Market Situation In the morning session of August 31, all four major indices of A-shares opened lower, with the Shanghai Composite Index down 0.65% at 3926.53 points, the Shenzhen Component Index down 1.35%, the ChiNext Index down 1.67%, and the STAR Market 50 down 2.34%, indicating significant pressure on the technology growth sector. Only 1168 stocks in the entire market were up, while 4137 were down, with the increase share at approximately 21%, indicating weak profit generation. On the surface, buoyed by the real estate credit management guidelines issued on August 28, real estate services and development sectors led the market against the downward trend. Conversely, impacted by the sharp decline in international gold prices on the previous Friday, the non-ferrous metals sector led the decline, with precious and industrial metals seeing significant downturns, while biomedicine and photovoltaic equipment also weakened. Overnight News Brief Federal Reserve's hawkish signals weigh down gold prices, U.S. stocks close lower: On August 28 (Eastern Time), Federal Reserve Chair Jerome Powell delivered his first keynote speech since taking office at the Jackson Hole Global Central Bank Conference, stating that inflation "remains too high" and that "work remains to be done" if there is no certainty that core inflation is falling quickly enough. The market's pricing for a rate hike in September briefly rose to 57%. Spot gold dropped 2.95% to close at $4453.67 per ounce, ending a three-week streak of gains; the three major U.S. stock indices closed lower, with the Dow Jones Industrial Average down 0.02% at 53559.99 points, the S&P 500 Index down 0.25% at 7711.76 points, and the NASDAQ down 0.52% at 26402.42 points. Oil prices surge as Iran claims the Strait of Hormuz is closed: Influenced by the U.S. military's strike on Iranian rocket launch facilities on Qeshm Island on August 30, Brent crude oil futures rose by 1.88% to $89.76 per barrel in Asian early trading on August 31, briefly surpassing $90. Iranian Deputy Foreign Minister Ali Bagheri Kani stated on August 29 that the Strait of Hormuz is currently completely closed, and any vessels passing through the strait must be coordinated and permitted by Iran, stating that the U.S. claim that vessels have already passed through is "completely false." Real estate credit guidelines implemented, mortgage terms extended to 40 years: The People's Bank of China and the Financial Regulatory Commission jointly issued the "Guidelines on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Model for Real Estate Development" on August 28, extending the maximum personal housing loan term from 30 years to 40 years, allowing for negotiation of interest rates or loan replacement on existing floating rate loans; the Ministry of Finance, State Administration of Taxation, and the China Securities Regulatory Commission also released Announcement No. 26 of 2026 on the same day, standardizing individual income tax policies for the transfer of publicly traded companies' restricted shares to apply a 20% tax rate on "income from property transfers," including any dilutive shares spawned after restricted shares are lifted and canceling the previous rule of calculating the cost basis at 15% of the transfer income (adopting a "new and old segment" approach). Changxin's LPDDR6 enters mass production, half-year earnings reveal divergence: Changxin Storage announced on August 29 the official mass production of LPDDR6 memory chips, with a peak rate of 12800Mbps and a maximum capacity of 16GB; the National Bureau of Statistics will deploy a new batch of data annotation pilot projects in 32 cities; with the end of half-year reporting, PetroChina reported a net profit attributable to the parent company of 103.936 billion yuan for the first half of the year, a year-on-year increase of 22%, setting a historical high for the same period; China CSSC reported a net profit attributable to the parent company of 9.954 billion yuan, a year-on-year increase of 163.51%; Muxi Co., Ltd. reported a net profit attributable to the parent company of 612 million yuan in the first half of the year, achieving a turnaround on increased GPU shipments; LONGi Green Energy Technology reported a revenue of 27.045 billion yuan in the first half of the year, a year-on-year decrease of 17.58%, with a net loss of 3.684 billion yuan. Market Outlook Today, all four major indices opened lower, with the STAR Market 50 down 2.34% and the ChiNext Index down 1.67% leading the decline, and only 21% of stocks in the market experiencing gains. Last Friday, Federal Reserve Chair Powell signaled a hawkish stance at the Jackson Hole Conference, leading to a 2.95% drop in spot gold, weighing on non-ferrous metals and biomedicine sectors with high valuations; the real estate credit guidelines issued on August 28 have driven the real estate sector to strengthen against the trend, becoming one of the few bright spots in the market. The consensus among institutions leans towards a judgment of concurrent external disturbances and internal support, with the market likely to remain in a phase of short-term fluctuation and consolidation. In terms of allocation, there may be a continuation of the "rebalancing" approach, focusing on hard technology core assets that resonate with performance and industrial trends, as well as low-level momentum recovery.