On May 25th, the market bottomed out and rebounded, with the STAR 50 Index surging over 6% intraday. By the close, the Shanghai Composite Index rose by 0.96%, the Shenzhen Component Index gained 1.66%, the ChiNext Index advanced 2.1%, and the STAR Composite Index climbed 3.52%. Over 2,100 stocks rose across the broader market, with 129 hitting the daily limit-up.

The semiconductor industry chain continued its strong rally in the afternoon, with the STAR Chip sector leading the gains. Hua Hong Company and Huada Jiutian surged by the 20% daily limit. SMIC, with a market capitalization exceeding one trillion yuan, touched the 20% limit-up near the close, finishing the day up over 18%. GigaDevice also hit the limit-up. SMIC, Cambricon, and ACM Research (Shanghai) all reached new all-time highs.

The optical communications sector saw a powerful surge. Cambridge Technology hit the limit-up, while Hengtong Optic jumped 14%. Eoptolink rose over 8%, reaching a new record high with its latest market cap hitting 656.3 billion yuan. QuantumCTek gained over 8%, while TFC Optical Communication and Runjian both rose more than 5%.

The new A-share "Stock King," Lianxun Instruments, saw its price surge to an intraday high of 1,898.88 yuan per share. It closed at 1,813 yuan per share, representing a gain of over 2,200% from its IPO price. Having been listed for only 19 days, Lianxun Instruments has broken multiple records for new stock performance in the A-share market, being hailed by investors as "legendary" and becoming the undisputed super bull stock of the year.

Huawei-related concepts experienced a strong rally. Stocks like JMT, Guanghong Technology, and Meiansen surged by the 20% daily limit. The catalyst was Huawei's official announcement of the "Tau (τ) Law." This marks the first time China has proposed a new guiding principle for industrial development in the global semiconductor field. Based on this law, Huawei has successfully designed and mass-produced 381 chips over the past six years. This autumn, Huawei will release a new Kirin mobile phone chip, fully adopting logic folding technology to significantly enhance related performance.

The PCB (Printed Circuit Board) concept continued its strength. Avary Holding secured its second consecutive limit-up, continuing to set new historical highs, while Lotus Holding achieved three limit-ups in five days. The power sector collectively strengthened, with Jingneng Power hitting six limit-ups in nine days.

The aviation sector fluctuated with an upward trend. China Express Airlines touched the limit-up intraday. China Eastern Airlines, Spring Airlines, China Southern Airlines, Juneyao Air, and Air China were among the top gainers. Expectations of easing tensions in the Middle East served as the core catalyst for the aviation stock rally. According to reports citing U.S. sources on May 23rd, the United States and Iran are close to reaching an agreement that includes extending the ceasefire for another 60 days, during which the Strait of Hormuz will reopen, Iran can freely sell oil, and both sides will negotiate on Iran's nuclear program. Stimulated by this news, international oil prices plunged over 5%.

On the downside, oil and gas stocks adjusted with fluctuations. Stocks like Tongyuan Petroleum, Keli Shares, and Potential Energy Eternal Faith declined.