A-share Midday Review | ChiNext Index falls 2.13%, battery and shipping sectors strengthen, semiconductors lead declines

On October 8, the three major A-share indices opened mixed and then rallied before pulling back, with the market showing a pattern of "index divergence, resource stocks strengthening, and tech growth stocks correcting." As of the midday close, the Shanghai Composite Index fell 0.27% to 3,831.84 points, the Shenzhen Component Index fell 1.24% to 12,727.71 points, and the ChiNext Index fell 2.13% to 3,068.62 points; the STAR 50 fell 3.66%. More than 2,000 stocks in the broader market rose, while more than 3,300 declined. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets totaled 1.1141 trillion yuan, an increase of 196.9 billion yuan from the previous trading day. On the capital flow side, in the morning session, main funds recorded net inflows into sectors including power equipment and new energy, basic chemicals, and defense and military industries, while recording net outflows from sectors including electronics, semiconductors, and communications, with the electronics sector seeing net outflows exceeding 7.1 billion yuan. Market Overview On the board, on the upside, shipping ports, oil and gas extraction and services, and gas sectors led the gains, while coal mining and processing and battery sectors also rose; on the downside, semiconductors, CPO (optical modules), and biological products sectors led the declines. Overall, on the first trading day after the holiday, capital flowed out of high-level tech growth sectors such as electronics and semiconductors and turned toward resource directions including shipping, oil and gas, and coal, as well as dividend assets such as banks. Bank Of China and Industrial and Commercial Bank of China hit record highs during the session, while decliners outnumbered advancers overall. Hot Sectors 1. Solid-state battery concept active against the trend The solid-state battery concept was active against the trend, with Liaoning Shidai Wanheng posting four consecutive limit-up days, Shanghai Zizhu High-Tech Science And Technology and Jiangsu Transimage Technology posting three consecutive limit-up days, and Hunan Lead Power Technology Group, Shandong Fengyuan Chemical, Shenzhen Center Power Tech., and Zhejiang Mustang Battery hitting the daily limit. Foshan Golden Milky Way Intelligent Equipment touched the limit-up level at one point during the session and closed the morning up more than 16%, while LWGF touched the 30CM limit-up level during the session. Comment: On the news front, 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 initially achieve large-scale application, long-life lithium batteries reach a cycle life of 15,000 cycles, and standards development be advanced in key areas of new batteries such as all-solid-state batteries and sodium batteries. 2. Shipping and port sector strengthens The shipping and port sector strengthened, with COSCO SHIPPING Energy Transportation hitting the limit-up just one minute after the open, China Merchants Energy Shipping and Nanjing Tanker Corporation hitting the limit-up, while Fujian Highton Development, COSCO SHIPPING Specialized Carriers, and GH SHIPPING followed the gains. Comment: On the news front, according to CCTV News, on local time October 7, Iran said it would block the "illegal" shipping lanes of the Strait of Hormuz and stated that the strait would remain closed until relevant demands are met; on the same day, an oil tanker was hit by multiple projectiles in waters near Qatar. The ongoing Middle East situation continues to disrupt expectations for crude oil maritime supply. Data from the Baltic Exchange showed that the cost of chartering a Very Large Crude Carrier (VLCC) to transport U.S. crude oil to Asia has risen to $77 million, compared with an average level of $9.2 million in 2025. In addition, China Merchants Energy Shipping announced on the evening of September 30 that its wholly owned subsidiary signed a 25-year long-term transport agreement with a customer for six Very Large Ore Carriers (VLOC), with the total contract amount expected to be no less than $2.8 billion. 3. Oil and gas sector rises collectively The oil and gas sector rose collectively, with Shanxi Guoxin Energy Corporation hitting the limit-up, Sino Prima Gas Technology up nearly 8%, Tong Petrotech Corp. up more than 6%, Shanxi Blue Flame Holding up 6%, while Shuifa Gas Co., Ltd. and Top Resource Energy followed the gains. Comment: On the news front, international crude oil prices generally rose during the National Day holiday, and on October 8 Brent crude oil futures traded near $102 per barrel; the International Energy Agency said in a statement on local time October 7 that its member governments agreed to accelerate the implementation of the oil reserve release plan announced in March this year. If all previously committed but not yet released reserves are put on the market, about another 100 million barrels of oil are expected to be released. 4. Real estate sector stocks active The real estate sector opened lower in the morning and then moved higher, with individual stocks performing actively. Shanghai Lujiazui Finance & Trade Zone Development hit the limit-up, ShenZhen Properties & Resources Development(Group)Ltd. touched the limit-up level at one point during the session and closed the morning up nearly 8%, Shenzhen Worldunion Group Incorporated touched the limit-up level during the session before pulling back, while Greattown and 5i5j Holding Group followed the gains. Comment: On the news front, on September 29, 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 Residents' Home Purchase Loans," implementing interest subsidies starting October 1 for residents using newly issued commercial personal housing loans to purchase their first homes, with the policy implementation period tentatively set at one year. According to a holiday survey by China Securities Journal, influenced by policies such as home purchase loan interest subsidies, attention to the property market in Beijing, Shenzhen, Guangzhou, and other places has increased, and the number of people viewing homes at sales offices has risen somewhat.