A-share markets opened lower across the board on August 11, with the three major indices diverging as the ChiNext Index rebounded from lows to gain over 1%, while the Shanghai Composite fluctuated narrowly around the flatline. By midday close, the Shanghai Composite was down 0.05%, the Shenzhen Component was up 0.65%, and the ChiNext Index rose 1.41%. The STAR 50 edged up 0.16%, while the Beijing Stock Exchange 50 slipped 0.10%. Across the market, 2,141 stocks advanced, 3,194 declined, with 50 hitting the daily limit up and none hitting the daily limit down. Trading volume on the Shanghai and Shenzhen markets totaled approximately 1.52 trillion yuan for the half-day session, down about 216 billion yuan from the previous session.

On the winning side, MLCC concept stocks surged, with Dalicap hitting the 20% daily limit, Shuangxing New Materials and Jiemei Technology also reaching the daily limit, and Fenghua Advanced Technology rising over 8%. Innovative drug concepts continued their strong momentum, with Baihua Pharmaceutical notching a sixth consecutive daily limit, Gan & Lee Pharmaceuticals hitting the limit, and Wanbang Pharmaceutical surging 20% on the daily limit. The film and television cinema sector remained active, with Beijing Culture connecting for a second daily limit and Huazhi Digital Media hitting the 20% limit. Computing power leasing concepts saw intraday volatility, with Hangzhou Iron & Steel and Hongbo Co., Ltd. hitting the daily limit.

On the downside, commercial aerospace concepts weakened, with Syrin New Materials falling over 9% and China Satellite dropping over 6%. Military equipment sectors performed poorly, while small metals, precious metals, and baijiu segments trended lower. Overall, capital flowed out of non-ferrous metals and military sectors into structural hotspots like MLCC, pharmaceuticals, and computing power leasing, highlighting a divergence with shrinking volume.

MLCC Concepts Surge

MLCC concept stocks broke out collectively, with Dalicap hitting the 20% daily limit, Shuangxing New Materials and Jiemei Technology also reaching the limit, Fenghua Advanced Technology rising over 8%, Yunzhong Technology up over 10%, Sanhuan Group gaining over 5%, and Guofeng New Materials hitting the limit. According to reports, surging AI computing demand has tightened MLCC supply-demand dynamics. Some clients, to secure key component supply, are paying two to three times the original price to major MLCC manufacturers like Yageo and Murata Manufacturing, creating a "highest bidder wins" scramble for materials. Industry analysis indicates that leading MLCC makers currently have ample orders, with capacity utilization near full capacity, and delivery times for some high-end models have extended to 26 to 40 weeks. Additionally, Samsung Electro-Mechanics began a 30% price increase across all MLCC products on August 1, and Taiyo Yuden announced a follow-up price hike effective September 1, marking a new cyclical upswing for the global MLCC market.

Innovative Drug Concepts Continue Strong Momentum

Innovative drug concepts maintained their strength, with Baihua Pharmaceutical achieving a sixth consecutive daily limit, Gan & Lee Pharmaceuticals hitting the limit, Wanbang Pharmaceutical surging 20% on the daily limit, Harbin Pharmaceutical connecting for a third daily limit, and Zhendong Pharmaceutical and Bioprogen following gains. Sub-sectors like CRO and pharmaceutical commerce were also active, with Kaikai Industry racking up a fourth consecutive daily limit, and Laobaixing and Yixintang hitting the limit. According to reports, a research note from Guoyuan Securities noted that several multinational pharmaceutical companies (MNCs) and CXO firms have recently released mid-year earnings pre-announcements, raising their full-year 2026 guidance. Overall, overseas MNCs continue to see growth in sales and profits, with CXO order improvements beginning to translate into performance, further validating that global innovative drug R&D investment and supply chain demand remain in a high-activity cycle.

Film and Television Cinema Sector Remains Active

The film and television cinema sector continued its active run, with Beijing Culture connecting for a second daily limit, Huazhi Digital Media hitting the 20% daily limit, Ruyi Films rising over 5%, Happiness Blue Ocean gaining nearly 4%, and Shanghai Film and China Film following. According to data from online platforms, as of August 10, total box office (including pre-sales) for the 2026 summer season has surpassed 8.6 billion yuan, with daily box office exceeding 100 million yuan for 30 consecutive days, and more than 236 million moviegoers. The film "Welcome to the Dragon Restaurant," directed by Wen Muye and starring Shen Teng, officially debuted on August 11, having built pre-screening buzz, with a Taopiaopiao score of 9.8, a record high for the past three years. The film's production companies include Ruyi Films, China Film, and Beijing Culture, among other listed firms.

Computing Power Leasing Concepts See Intraday Rally

Computing power leasing concepts experienced an intraday surge, with Hangzhou Iron & Steel and Hongbo Co., Ltd. hitting the daily limit, Langyuan Stock rising over 5%, and Jialitu, Meiliyun, Tongniu Information, and Data Resources following. According to reports from Shanghai Securities News, based on a fully modular design architecture, Alibaba Cloud has reduced the delivery time for large-scale AIDC data centers to just 100 days, while overall construction costs have actually decreased by more than 10%. Domestic traditional delivery times range from 6 to 12 months, while in the US, it is 12 to 18 months. This year, Alibaba Cloud plans to more than double its global production capacity for modular data centers.