A-share Market Close Review | Shanghai Composite Index Rises 0.31%, Pharmaceuticals and Biotech Lead Gains, STAR 50 Falls 2.51%

On September 30, the three major A-share indices opened higher collectively but diverged thereafter. The Shanghai Composite Index fluctuated within a narrow range and closed in the red, while the ChiNext and STAR boards weakened, with the STAR 50 leading declines. The market showed a pattern of index divergence, more decliners than advancers, and continued light trading ahead of the holiday. As of the close, the Shanghai Composite Index stood at 3,842.19 points, up 0.31%; the Shenzhen Component Index stood at 12,887.62 points, down 0.11%; the ChiNext Index stood at 3,135.28 points, down 0.23%; the STAR 50 stood at 1,530.01 points, down 2.51%; the BSE 50 stood at 1,039.61 points, up 0.70%. Combined turnover in the Shanghai and Shenzhen markets was 1,437.989 billion yuan, an increase of 28.792 billion yuan from the previous trading day. Among Shanghai and Shenzhen A-shares (excluding the Beijing Stock Exchange), 2,567 stocks rose, 2,824 fell, and 181 were flat, with 56 hitting the daily limit up and 13 hitting the daily limit down; advancing stocks accounted for about 46%. By sector, biological products, medical services, planting, chemical pharmaceuticals, commercial vehicles, and baijiu led gains; semiconductors, memory chips, advanced packaging, HBM, electronic chemicals, and components led declines. Drivers The day's market action was composed of several verifiable pieces of information: First, index divergence was pronounced, with the Shanghai Composite up 0.31% and the BSE 50 up 0.70%, while the Shenzhen Component fell 0.11%, the ChiNext fell 0.23%, and the STAR 50 fell 2.51%; combined Shanghai and Shenzhen turnover was 1,437.989 billion yuan, up 28.792 billion yuan from the previous trading day, and advancing stocks accounted for about 46%. Second, the National Bureau of Statistics announced on September 30 that the September manufacturing purchasing managers' index was 50.1%, up 0.3 percentage points from the previous month, ending two consecutive months below the boom-or-bust line and returning to expansion territory; the non-manufacturing business activity index for the same period was 50.2%, up 1.2 percentage points from the previous month. Third, on September 29, outbound licensing deals in the innovative drug field landed intensively: AstraZeneca announced a $2 billion strategic equity investment in Summit and will lead clinical research on related combination therapies; on the same day, Jiangsu Hengrui Pharmaceuticals announced it would license global development, manufacturing, and commercialization rights for HRS-1596 outside mainland China, Hong Kong, Macau, and Taiwan to Novo Nordisk, with a potential total deal value of up to $2.6 billion (the pipeline is in the metabolic and weight-loss area, different from the oncology line). Fourth, the Ministry of Finance, together with the People's Bank of China and the National Financial Regulatory Administration, issued the "Notice on Implementing the Interest Subsidy Policy for Residential Home Purchase Loans" (Cai Jin [2026] No. 95) on September 29, granting, effective October 1, an annualized 1 percentage point interest subsidy for up to five years on eligible first-home commercial personal housing loans; the real estate industry index closed up 0.67% that day. Fifth, according to a September 29 press conference by the China Meteorological Administration, the National Climate Center expects El Nio to peak around November this year, with a sea surface temperature index of 3.2C3.5C, forming the strongest super El Nio event since monitoring records began. Hot sectors 1. [Pharmaceuticals and Biotech] The sector was the strongest main line of the day. The tumor vaccine concept index rose 9.67%, CRO rose 3.79%, the biological products industry index rose 4.18%, medical services rose 3.86%, and chemical pharmaceuticals rose 2.79%. Among individual stocks, CanSino Biologics Inc. hit the 20CM daily limit up (+20.00%), Zhuhai Trinomab Pharmaceutical hit the 20CM daily limit up (+19.99%), Shanghai Model Organisms Center, Inc. rose 19.87%, Acrobiosystems rose 14.69%, Novoprotein Scientific Inc. rose 13.47%, and Joinn Laboratories (+10.00%), Ningbo Menovo Pharmaceutical (+10.00%), Beijing Konruns Pharmaceutical (+10.00%), Landfar Bio-medicine (+10.01%), and Beijing Aosaikang Pharmaceutical (+9.98%) hit the daily limit up. On the catalyst side, Moderna closed above $203 overnight in the U.S. market, setting another 52-week high and providing the most direct sentiment transmission for the sector; AstraZeneca announced on September 29 a $2 billion strategic equity investment in Summit and will lead clinical research on combination therapies including ivonescimab and CLDN18.2 ADC; Jiangsu Hengrui Pharmaceuticals announced the same day it would license overseas rights to HRS-1596 to Novo Nordisk, with a potential total deal value of up to $2.6 billion; in addition, Phase III clinical data related to mRNA tumor vaccines will be released at the 2026 European Society for Medical Oncology (ESMO) Congress in October. 2. [Planting and Agriculture] The industry index rose 3.72%, the sugar concept rose 3.28%, and the corn (+2.18%) and genetically modified organism (+2.53%) concepts strengthened in tandem. China Hainan Rubber Industry Group hit the daily limit up (+10.02%), ShanDongDenghai Seeds hit the daily limit up (+10.00%), and WanXiang Doneed rose 5.22%. On the catalyst side, according to a September 29 press conference by the China Meteorological Administration, the National Climate Center expects El Nio to peak around November this year, with a sea surface temperature index of 3.2C3.5C, forming the strongest super El Nio event since monitoring records began, while also noting that agricultural production impacts will vary by region and season and are often more pronounced the following year. 3. [Commercial Vehicles/General Equipment and Siasun Robot&Automation] The commercial vehicle industry index rose 2.57%, Anhui Jianghuai Automobile Group Corp.,Ltd. rose 5.49%, and Dongfeng Automobile rose 2.69%; in auto parts, Songz Automobile Air Conditioning hit the daily limit up (+10.00%); in the Siasun Robot&Automation and general equipment direction, Ningbo Donly (+10.04%) and Fujian Longxi Bearing(Group)Corp., (+9.98%) hit the daily limit up (both are classified under machinery equipment in the Shenwan industry classification and are constituents of the "Siasun Robot&Automation concept" and "humanoid Siasun Robot&Automation" respectively), while Xiangyang Automobile Bearing (+9.98%) extended its winning streak to four boards (it fell more than 8% at the open before sealing the daily limit up). On the catalyst side, according to Cailianshe on September 30, Huawei Executive Director Yu Chengdong recently said that the Zhunjie SUV, a collaboration between Huawei and Anhui Jianghuai Automobile Group Corp.,Ltd., is expected to go on sale in early 2027. In addition, the solid-state battery direction remained active, with Shanghai Emperor of Cleaning Hi-Tech (+10.01%) and Jiangsu Transimage Technology (+10.03%) both posting a second consecutive daily limit up. Adjusting sectors The semiconductor supply chain and the electronics direction that was active the previous trading day led declines that day: the semiconductor industry index fell 2.99%, the memory chip concept fell 2.74%, and advanced packaging (2.42%), HBM (3.12%), and electronic chemicals (2.39%) weakened in tandem. Among individual stocks, Verisilicon Microelectronics (Shanghai) Co., Ltd. fell 11.34%, Ningbo Kangqiang Electronics fell 8.74% (at one point touching the daily limit down during the session), Beijing Huafeng Test & Control Technology fell 6.26%, Semiconductor Manufacturing International Corporation fell 4.70%, and Cambricon fell 3.54%. The components industry index, which had risen 2.51% the previous trading day, fell 2.60% that day, with the printed circuit board direction also among the leading decliners.