A-Share Midday Review: Shenzhen Component Index Rose 0.28% in Half Day, AI Hardware Stocks Including CPO and Liquid-Cooled Servers Surged Collectively

The three major A-share indices showed mixed performance in the morning session. By midday, the Shanghai Composite Index fell 0.08%, the Shenzhen Component Index rose 0.28%, the ChiNext Index declined 0.39%, and the Beijing 50 Index increased 0.28%. The combined half-day trading volume of the Shanghai, Shenzhen, and Beijing markets reached 1.648 trillion yuan, up 117.6 billion yuan from the previous day. Over 2,300 stocks in the market rose.

In terms of sectors and themes, the top gainers included CPO, optical fiber, high-speed copper cable connections, PCB, liquid-cooled servers, power grid equipment, cultivated diamonds, and aircraft engines. The biggest declines were seen in film and cinema chains, insurance, real estate, automobile manufacturing, epoxy propane, short-form games, building materials, and duty-free shops.

Market-wise, overnight earnings reports from Nvidia exceeded expectations, boosting sentiment across the AI industry chain. AI hardware stocks such as CPO, copper cables, liquid-cooled servers, and PCB surged collectively. Tianfu Communication, Shenling Environment, and Huafeng Technology all hit new historical highs during trading. The power grid equipment sector also benefited from the AI wave, with Beijing Kairui and Hangdian shares hitting the daily limit.

Zambia announced a suspension of lithium concentrate and ore exports, causing the lithium extraction sector to rise sharply, with Jinyuan Shares and Xianfeng Holdings hitting the daily limit. Additionally, cultivated diamonds, computing power leasing, and commercial aerospace saw some intraday gains.

On the other hand, the real estate sector retreated, as the market responded to yesterday’s positive policies for Shanghai’s property market, with Huaxia Happiness and Shilianxing leading declines. The battery energy storage sector came under pressure due to concerns over rising upstream lithium carbonate prices squeezing profits, with Sungrow Power Supply and CATL falling more than 5% during the session.