On Thursday (June 11), the A-share market experienced a round of volatile adjustment, with the three major indices ultimately closing down collectively. By the close of trading, the Shanghai Composite Index dipped marginally by 0.16%, settling at 3,987.01 points, while the Shenzhen Component and ChiNext Index declined by 0.68% and 1.13% respectively. The China A50 Futures Index also edged lower. The broader market displayed a pattern of widespread declines, with the number of falling stocks exceeding 4,000, while only around 1,300 stocks managed to advance.
Trading data indicates that the total turnover across the Shanghai and Shenzhen markets reached 2.55 trillion yuan for the day. Although this represents a contraction of approximately 67.2 billion yuan compared to the previous session, volume remains at a high level, suggesting that market trading sentiment has not completely cooled. On the sector front, capital flows showed significant divergence. Concepts that were highly sought after previously, such as Physical AI and the Media sector, suffered steep declines today. Film theater chains and cultural media directions adjusted collectively, with multiple related stocks touching the daily limit down.
At the same time, technology hard assets became a new safe haven for funds. The upstream segment of the semiconductor industry chain performed most brilliantly, with the semiconductor materials sector exploding against the trend. Sub-sectors such as sputtering targets, photoresists, and electronic specialty gases all demonstrated strong characteristics, with some stocks achieving consecutive limit ups or closing at the daily cap. The semiconductor equipment sector was similarly favored by capital, with cleanroom and packaging and testing equipment leading the gains. Additionally, the non-ferrous metals and chemical sectors showed active performance during the session, with stocks such as Xianglu Tungsten and Liuguo Chemical hitting the daily limit up.
Some analytical views suggest that the A-share market is currently in a state of weak oscillating recovery. While the index level appeared to record consecutive gains on the surface, for many days it has presented the characteristics of false bullish candles. Valuation digestion for tech stocks and structural switching will proceed synchronously. As earnings for the AI computing chain gradually materialize, the valuation pressures that were previously overextended will be relieved. In the short term, market oscillation and adjustment are an inevitable process of self-repair, which does not change the positive trend in the medium to long term. The tech market trend may not have ended but has entered a new phase shifting from broad increases to selecting individual stocks and focusing on fundamentals.
