Chinese A-shares exhibited mixed and volatile trading on June 11th, with the three major indices opening with divergent movements. The Shanghai Composite Index opened lower and continued its descent, while the ChiNext Index initially surged over 1% during the session before retreating and turning negative. The semiconductor sector demonstrated strength against the broader market trend, with segments like semiconductor materials and equipment advancing. Computing hardware stocks also saw a recovery, with concepts such as CPO, optical chips, and optical communications collectively rising. Nonferrous metals staged a rebound. Conversely, AI application concept stocks underwent significant adjustments.

Hong Kong markets experienced an early surge followed by a pullback. The Hang Seng Index and the Hang Seng Tech Index briefly turned positive at the open before both declining. Technology and internet stocks showed a split performance, while AI large model stocks saw some rebound. In the bond market, treasury bond futures generally fell. On the commodities front, domestic commodity futures rose across the board, with polysilicon leading the gains. Core market movements are as follows:

A-Shares: As of the latest update, the Shanghai Composite Index is down 0.43%, the Shenzhen Component Index has fallen 0.40%, and the ChiNext Index has declined 0.19%.

Hong Kong Shares: As of the latest update, the Hang Seng Index is up 0.21%, and the Hang Seng Tech Index has risen 0.06%.

Bond Market: Treasury bond futures are down across the board. As of the latest update, the 30-year main contract has fallen 0.16%, the 10-year main contract is down 0.05%, the 5-year main contract has declined 0.03%, and the 2-year main contract is up 0.01%.

Commodities: Domestic commodity futures are broadly higher. As of the latest update, polysilicon has surged nearly 6%, crude oil is up 3%, fuel oil, asphalt, and coke have risen over 2%. Lithium carbonate, palladium, caustic soda, platinum, industrial silicon, and the containerized freight index have all gained more than 1%. Coking coal, rapeseed, soybean meal, alumina, Shanghai aluminum, stainless steel, rebar, Shanghai tin, rubber, hot-rolled coil, and iron ore are among the other gainers. Pulp, ferromanganese silicon, Shanghai nickel, glass eggs, and Shanghai copper are among the few decliners, with Shanghai silver and Shanghai gold leading the losses.

At 09:56, the optical fiber concept saw a volatile recovery during the morning session. FiberHome Telecommunication Technologies Co., Ltd. hit the daily limit-up, following a recent strong performance by Taifeng Synthetic Leather Co., Ltd. (which had four limit-up days in the past five). Tongguang Cable Co., Ltd., Jiangsu Etern Co., Ltd., Jiangsu Pacific Quartz Co., Ltd., and Jinxin诺 followed with gains.

This movement follows news that after similar moves by Meta and Nvidia, Amazon has also moved to secure core optical fiber supplies, indicating the global AI computing arms race is extending comprehensively from the computing layer to the underlying physical transmission medium. On the evening of June 8th, Amazon announced a multi-billion dollar long-term optical fiber procurement agreement with Corning to connect its rapidly expanding data centers in the United States.

At 09:49, the MLCC (Multi-Layer Ceramic Capacitor) concept strengthened again in the morning session. Fenghua Advanced Technology (Holdings) Co., Ltd. touched the daily limit-up, while Yunzhong Technology Co., Ltd. surged over 10%, both hitting record highs. Torch Electron Co., Ltd., Sanhuan Group Corporation Ltd., Sinocera Functional Material Co., Ltd., and Jiemei Technology Co., Ltd. followed with gains.

This follows a price increase notice from Murata Manufacturing, announcing a comprehensive price hike for AI server and high-end automotive-grade MLCC products effective July 1st, with increases ranging from 10% to 40%. With annual demand stable and component shortages expected to persist in the second half of the year, demand from network communication servers like 800G switches is a core driver.

At 09:47, the ChiNext Index rose over 1%, while the Shanghai Composite Index fell 0.09% and the Shenzhen Component Index gained 0.48%. Sectors like minor metals, semiconductors, lab-grown diamonds, and oil and gas were among the leaders. The number of rising stocks across the Shanghai, Shenzhen, and Beijing markets exceeded 1,200.

At 09:35, the semiconductor materials index surged significantly. Zhongjuxin-U and Jiangfeng Electronic Materials Co., Ltd. both rose over 10%, reaching record highs. Kangqiang Electronics Co., Ltd. and Haohua Chemical Science & Technology Corp., Ltd. hit the daily limit-up.

At 09:26, the Shanghai Composite Index opened 0.34% lower, and the ChiNext Index fell 0.4%. Humanoid robots, servers, BC batteries, PCBs, AI computing power, semiconductor wafers, and commercial aerospace concept stocks weakened. Industrial gases, oil and gas, and rare earth themes showed strength against the trend.

At 09:21, the Hang Seng Index opened 0.11% lower, and the Hang Seng Tech Index fell 0.2%. MINIMAX dropped over 4%, with XPeng Inc., Horizon Robotics, Zhipu AI, and Li Auto Inc. among the leading decliners. CNOOC Limited and PetroChina Company Limited showed strength.