China's A-share market opened mixed on August 7, with the three major indices rebounding choppily and the ChiNext Index leading the gains. By midday close, the Shanghai Composite Index was at 3919.51 points, up 0.49%; the Shenzhen Component Index was at 14295.08 points, up 1.31%; and the ChiNext Index was at 3577.20 points, up 1.75%. The STAR 50 Index stood at 1718.59 points, gaining 1.02%. A total of 2,353 stocks rose, while 3,046 fell. The half-day trading volume on the Shanghai and Shenzhen exchanges was 1.68 trillion yuan, shrinking by 75.2 billion yuan from the previous trading day.

In terms of sector performance, the PCB concept saw a broad breakout, with over a dozen constituent stocks hitting the daily limit. Innovative drug and CRO concepts collectively strengthened, with multiple stocks hitting their upper price limits. The rare earth permanent magnet concept was active, with China Rare Earth hitting the daily limit. The 6G concept continued its strong momentum, with Tongyu Communication achieving a 5-day, 4-board pattern. On the downside, the information security concept adjusted collectively, with stocks like NSFOCUS and seczone falling over 10%. The cross-border payment sector declined, and the software development sector trended lower overall. Overall, the market showed a clear divergence between index performance and individual stock movements. Despite all three major indices rising and the ChiNext Index gaining over 1.7%, more than 3,000 stocks still declined across the market. Funds concentrated in a few high-growth sectors like electronics, pharmaceuticals, and communications, while sectors such as information security and software development faced profit-taking pressure.

Key Sector Highlights

PCB Concept Sees Broad Surge

The PCB concept erupted across the board, with Fangbang Electronics, Yibo Technology, and Taijin New Energy hitting the 20% daily limit. Baoding Technology achieved a 6-day, 5-board pattern, Huazheng New Materials a 4-day, 3-board pattern, and Jingwang Electronics a 2-day limit-up. More than a dozen stocks, including Yidun Electronics, Bomine Electronics, Aoshikang, Shengyi Technology, Hongban Technology, Norde Stock, and Ouke Technology, also hit their daily limits. Analyst commentary indicates that Citigroup Research reported that electronic fabric prices recorded their largest single-month increase in August, with the 1080, 2116, and 7628 series average prices rising by 17% to 18%, bringing year-to-date gains to 118% to 165%. Electronic fabric is a core reinforcing material for copper-clad laminates (CCL), and the price increases are cascading along the "electronic fabric-CCL-PCB" chain. Goldman Sachs has simultaneously raised its forecasts for AI server PCB and CCL, projecting the market sizes to reach $84 billion and $48 billion, respectively, by 2028. Additionally, Nvidia's Rubin architecture is driving growth in AI computing hardware demand, further boosting upstream PCB sector sentiment.

Innovative Drugs and CRO Concepts Strengthen

Innovative drug and CRO concepts collectively strengthened, with stocks like Bide Pharmaceutical, GemPharmatech, and Acrobiosystems hitting the 20% daily limit. Baihua Pharmaceutical achieved a 4-day limit-up, while Asymchem and Harbin Gloria Pharmaceuticals recorded a 4-day, 2-board pattern. Stocks such as Harbin Pharmaceutical and Hisun Pharmaceutical also hit their daily limits, while others like Ji'an Protein, Porton Pharma Solutions, Haoyuan Pharmaceutical, and Medicilon surged over 10%. According to research from China's Golden Securities, from 2023 onward, the top 15 multinational pharmaceutical companies have been investing approximately $200 billion annually in external collaborations. As of July 10, 2026, these companies' external capital expenditures for the year have already reached $200.3 billion, approaching 73.5% of the total for the full year 2025, establishing a high-activity global pharmaceutical M&A cycle. Furthermore, several innovative drug companies, including BeiGene, RemeGen, and Innovent Biologics, recently reported better-than-expected interim results. WuXi AppTec's first-half revenue grew by nearly 39% year-on-year, and the company has significantly raised its full-year revenue guidance to between 58.5 billion and 60.5 billion yuan, confirming the industry's fundamental recovery.

Rare Earth Permanent Magnet Concept Active

The rare earth permanent magnet concept showed active trading, with China Rare Earth and Youyan New Materials hitting their daily limits. Zhongke Magnetic Industry rose over 9%, and Jiuling Technology gained over 10%. Stocks like Northern Rare Earth, CNMC Rare Earth, and Shenghe Resources also followed suit. Data from the China Rare Earth Industry Association shows that the average price of praseodymium neodymium oxide in July was 758,913 yuan per ton, a month-on-month increase of approximately 6.57%. In the first half of 2026, the average price of praseodymium neodymium oxide was 731,000 yuan per ton, a significant year-on-year increase of 73.6%. On the supply side, customs data indicates that rare earth ore imports in May fell by 44.4% year-on-year, while recycled oxide production on the recycling side decreased by 19.5% month-on-month. The widening supply-demand gap continues to support rare earth prices at elevated levels.

6G Concept Continues Its Strong Momentum

The 6G concept continued its strong streak, with Tongyu Communication achieving a 5-day, 4-board pattern and Wuhan Fanhua achieving a 2-day limit-up. Guangha Communication surged over 10%, and stocks like Shenglu Communication, Canqin Technology, Sunway Communication, and Benchuang Intelligent also rose. According to a report by the Star Market Daily, Nvidia is accelerating its entry into the telecom operator market and is seeking partners among Chinese base station manufacturers to develop 6G base stations that meet overseas market requirements. Tongyu Communication previously issued a clarification stating that the company it has invested in, Jiaxian Communication, is developing 6G AI-RAN base station technology based on Nvidia's CUDA Aerial open-source ecosystem platform. It has not signed any research and development cooperation agreement or strategic cooperation framework agreement with Nvidia.