A broad-based rally swept across China's A-share market on July 31, led by a dramatic rebound in technology stocks. The ChiNext Index surged more than 6%, while the STAR 50 Index jumped nearly 9%, driven by strong gains in semiconductor chips, computing hardware, and robotics. This follows a surge in U.S. semiconductor stocks overnight, with Japanese and South Korean chipmakers also posting significant gains earlier in the session.

Hong Kong markets showed divergence, with the Hang Seng Index initially declining while the Hang Seng Tech Index edged up. Most tech and internet stocks retreated, but chip stocks staged a strong rebound. Shares of Gigadevice Semiconductor Inc. surged over 20%, and the two-times leveraged product tracking SK Hynix soared more than 50%. AI large-model stocks also rallied, with Zhipu AI climbing over 26%.

In bond markets, government bond futures traded broadly higher. Commodity futures in China were mixed. Key market movements are outlined below.

Key Market Performance Overview

A-shares: As of writing, the Shanghai Composite Index rose 1.01%, the Shenzhen Component Index gained 3.81%, and the ChiNext Index jumped 6.06%. The STAR 50 Index was up more than 7%.

Hong Kong: The Hang Seng Index fell 0.52%, while the Hang Seng Tech Index rose 0.30%.

Bonds: Government bond futures climbed, with the 30-year contract up 0.23%, the 10-year contract up 0.10%, the 5-year contract up 0.06%, and the 2-year contract up 0.02%.

Commodities: Domestic commodity futures were mixed. Palladium rose 2%, while tin, glass, platinum, silver, and polysilicon gained over 1%. Rubber, gold, stainless steel, nickel, copper, industrial silicon, the container shipping index, caustic soda, aluminum, and manganese silicon also advanced. Soybean meal, rebar, iron ore, alumina, hot-rolled coil, and pulp declined. Asphalt, eggs, coke, and lithium carbonate fell over 1%, while crude oil, coking coal, and fuel oil dropped more than 2%.

09:54

The semiconductor supply chain continued its intraday surge. Several semiconductor equipment ETFs, including those from China Asset Management, China Merchants, and GTJA Allianz, hit their daily price limits. ETFs focused on STAR-listed semiconductor equipment from Penghua and Huatai-PineBridge both gained more than 10%.

09:46

Banking stocks bucked the trend and fell in early trading. Agricultural Bank of China and China Construction Bank dropped over 4%, while ICBC, Bank of China, Bank of Communications, SPD Bank, and CITIC Bank all fell more than 3%.

09:42

The two-times leveraged product tracking SK Hynix surged over 55%, after briefly spiking 270% within five minutes, with turnover exceeding HK$3.5 billion. The two-times leveraged product tracking Samsung Electronics rose over 45%. Hong Kong-listed memory concept stocks rallied sharply. Gigadevice Semiconductor Inc. gained over 23%, and Montage Technology climbed 17%.

09:40

MLCC (Multi-layer Ceramic Capacitor) concepts strengthened again in early trade. Shuangxing New Material hit its second consecutive daily limit. Lixinghe, Sanhuan Group, and Sidike rose over 10%, followed by gains in Sunlord Electronics, Torch Electronics, Sinocera, and Fenghua Advanced Technology.

09:32

CPO (Co-packaged Optics) concepts rebounded broadly. Zhongji Innolight and Lianxun Instruments rose over 15%, while Tianfu Communication, InnoLight Technology, Robotechnik, and TCS also gained more than 10%.

On the news front, Amazon is expected to increase its investment in artificial intelligence, with capital expenditure projected to reach $220 billion this year. The company had previously forecast $200 billion in capital spending for 2024 in February, maintaining that forecast in April.

09:31

Changxin Technology surged nearly 13% intraday, pushing its total market capitalization above 4 trillion yuan.

09:26

The Shanghai Composite Index opened 0.76% higher, while the ChiNext Index jumped 5.15%. The semiconductor and computing hardware supply chains rebounded strongly, with CPO, memory, and PCB sectors leading the gains. Robotics, solar, and lithium battery themes also strengthened. Sectors including baijiu, coal, oil & gas, banking, cultural media, and pharmaceuticals underperformed.

09:21

The Hang Seng Index opened 0.08% lower, while the Hang Seng Tech Index rose 0.3%. Hua Hong Semiconductor, Zhipu AI, and MINIMAX rose nearly 15%, while Lenovo Group and SMIC gained over 8%.