Midday Update: The Shanghai Composite Index opened lower and fell below 3900 points. The semiconductor, commercial aerospace, and 6G concept sectors are leading the decline.

Three major indices fell collectively in the morning session. As of noon, the Shanghai Composite Index fell by 0.66%, the Shenzhen Component Index fell by 0.43%, the ChiNext Index fell by 0.29%, the Beixin 50 Index fell by 0.22%, and the Kechuang 50 Index fell by 3.45%. The total turnover of the entire market was 1.6352 trillion yuan, a decrease of 229 billion yuan from the previous day, with over 2900 stocks falling. In terms of sector themes, the oil and gas exploration and service, pharmaceutical business, coal mining and processing, flammable ice, and genetically modified sectors performed well. The national large fund holdings, semiconductor, 6G concept, commercial aerospace, and communication services sectors performed poorly. On the market, U.S. President Trump has formally notified Congress of the resumption of hostilities in Iran. Oil and gas exploration and service stocks opened high and continued to rise. Blue Flame Holdings hit the limit up, Kelin shares rose more than 15%, Tongyuan Petroleum rose more than 14%, Qianeng Hengxin, Zhongman Petroleum, and CNOOC Development followed the rise. The pharmaceutical business sector opened lower but performed well. Yao Easy Buy, Renmin Tongtai hit the limit up, Jianfa Zhixin, Huaran Healthy, and Dacanlin were among the top gainers. The coal mining and processing sector was active, with Dayou Energy hitting the limit up, Haohua Energy, Huaibei Mining, and Shanmei International among the top gainers. The semiconductor sector continued to decline, with Shanghai Hejing falling by more than 15%, Yoyen Silicon, Shengkong Communication, Huahai Qingke, Huguil Industry, and Aerospace Micro among others falling by more than 10%. The communication services sector performed poorly, with 3D Communications, Data Harbor, and Runjian Shares hitting the limit down, with Aofei Data, Halo New Network, and Fun Helper among the top decliners. Stocks in the commercial aerospace sector continued to decline, with a new round of limit down, as more than ten stocks such as China Satellite, China Satellite Communication, Aerospace Power, Aerospace Development, and Tongyu Communication hit the limit down, while Aerospace Universe, Superjet Shares, and Electric Science Blue Sky fell by more than 10%.