Major A-share indices continued to fall today, with the Shanghai Composite Index falling below 3,000 points. At the close, the Shanghai Composite Index fell 0.24% to 2,998 points, the Shenzhen Component Index fell 0.04%, and the ChiNext Price Index fell 0.39%. Nearly 2,700 stocks declined, and the total market turnover was 619.6 billion yuan, a decrease of 104.8 billion yuan from yesterday. This week, the Shanghai Composite Index fell 1.14%, the Shenzhen Component Index fell 2.03%, the ChiNext Price Index fell 1.98%, and the B-share 50 Index fell 1.93%.
On the sectorial front, the education sector, which rose sharply yesterday, fell back today, with Kingswood Education Technology falling more than 6%; the EDR concept also fell, with Hopechart IoT Technology falling more than 18%; Chiplet concept trended weakly, with Aisencorp falling more than 13%; Energy Metals, Lithography Machines and AI Chips were among the worst performers. In addition, the Engineering Consulting Services sector rose with Shenzhen New Land Tool Planning & Architectural Design Co. rising 20%; Zealand's new drug for weight loss saw an 8.6% weight loss over 16 weeks, making the weight loss drugs sector more active. Jin Kai Biosciences rose limit-up. Water Conservancy Department revised and released a regulatory framework for water conservancy technology, and the underground pipe network and cement building materials sectors rose, with Hualan Group rising limit-up; the Explosion-Control Concept, Biological Products and Jewelry sectors had the best gains.
Specifically:
The education industry sector experienced the biggest decline, with Dark Horse Technology Group falling more than 7%, with Kingswood Education Technology, China Hi-Tech Group, Qtone Education Group (Guangdong), DouShen Education, among others, also falling in tandem.
Lithography machines concept trended weakly, with H.B. Fuller, WaveOptics, and Hawkeye Technology falling more than 5%, and Shenyang Blue Silver Industry Automation Equipment Co., Ltd., Kunshan Kinglai Hygienic Materials Co., Ltd., and Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd. , among others, also fell in tandem.
The brain-computer interface sector had the best gains, with Innovative Medical Management and Shenzhen Leaguer Biomedical Technology Co., Ltd. seeing limit-up, while Xiangyu Medical rose more than 8%, and Chengyi Tong, Sanbo Brain Science, Jiangsu Apon Medical Technology Co., Ltd., and Nanjing Panda Electronics Co., Ltd. followed in the wake of the gains.
In the news, a research team at Carnegie Mellon University in the United States has successfully integrated a new type of focused ultrasound stimulation technology, achieving bidirectional brain-computer interface functionality in a study involving 25 subjects, and using machine learning to encode and decode brainwaves.
Water conservancy stocks rose sharply, with Shunyu Shares, Shenzhen New Land Tool Planning & Architectural Design Co., Ltd., and Hualan Group all limit-up by 10 cm, and Henan Communications Planning & Design Institute Co., Ltd., Long Yuan Construction Group Co., Ltd., Tibet Tianlu Co., Ltd., and Shenzhen EcoBeauty Co., Ltd., among others, also rose in tandem.
In the news, the Water Conservancy Department recently revised and released a regulatory framework for water conservancy technology to fully leverage the guiding, leading, driving, and foundational role of water conservancy technology standards in comprehensively improving national water security capabilities.
The weight-loss drug sector was active, with Jin Kai Biosciences limit-up and Gan & Lee Pharmaceuticals rising more than 7%, while SanNoBio, BrightGene Bio-Medical Technology Co., Ltd., and Novo Nordisk A/S followed in the wake of gains.
Leading companies in the weight-loss drug industry such as Eli Lilly and Co. and Novo Nordisk A/S have yet again reached historic market capitalization highs, joining the trillion-dollar market capitalization club. Danish weight loss drug maker Zealand recently released its report card, with its new drug achieving an 8.6% weight loss over 16 weeks. Market research also predicts that the global weight loss drug market will reach $28.4 billion by 2028.
Individual stocks are fluctuating.
Kweichow Moutai fell 1.94% to 1,471 yuan, reaching a new low since November 2022. Kweichow Moutai has fallen more than 13% this year. Data shows that Kweichow Moutai is the stock with the largest trading volume during the period of consecutive foreign sales, and the current foreign shareholding ratio has dropped to 6.75%, the lowest since January this year. According to liquor price reference data, Moutai 1935 wholesale reference price fell below 800 yuan/bottle today, at 780 yuan/bottle, and has shown a price “inverted” situation.
Looking ahead, Morgan Stanley predicts that A-shares will maintain a range-bound volatility in the short term, and advises investors to remain cautious while focusing on individual stock strategy and thematic investment. It stated that although sentiment in the Chinese A-share market has improved slightly, the mixed macroeconomic data from April to May once again proved that the pressure on the macro front still exists, and the risk of deflation remains elusive.
According to Morgan Stanley, China's decision-makers may accelerate the implementation of announced fiscal support measures in the second half of the year, including CNY 500 billion in technology innovation and technological transformation refinancing and CNY 300 billion in refinancing of security housing. It is suggested that investors closely monitor the subsequent policies, which are crucial to maintaining market sentiment, as if subsequent policy actions fail to be effective, they may disappoint investors. Suggestions include focusing on individual stock strategies and concepts that benefit from state-owned enterprise reform, high-quality dividend stocks, and overseas expansion.