A-share opening express | GEM index opened more than 3% lower after surging the next day, small metal semiconductors bucked the trend

The Zhitong Finance App learned that on August 5, the Shanghai Index opened 0.19% lower to 3815.12 points, the Shenzhen Index opened 1.73% lower to 13644.83 points, and the GEM Index opened 3.35% lower to 3372.08 points. Science Innovation 50 opened 0.07% lower at 1615.26 points. As of 9:35, a total of 2,910 companies in the two markets and the Beijing Stock Exchange had risen, 2,171 were down, and 456 were flat. The increase was highest: small metals, automotive services, engineering consulting services, aerospace equipment, semiconductors, etc.; the decline was the highest: communication equipment, components, consumer electronics, etc.

Market conditions

On August 5, the three major A-share indices collectively opened lower. After the volume of the GEM index surged 5.64% and the Science and Innovation 50 rose 4.09% on the previous trading day, the technology growth sector showed pressure to take back profits. The opening of the Communications Equipment sector led the decline, and the low opening of the GEM index was the highest. However, small metals, semiconductors, etc. continue to be active, and the rise and fall of the Yunnan germanium industry has strengthened the germanium gallium concept; sectors such as automobile services and aerospace equipment have also performed well. The number of companies in the two markets rose 2,910 and fell 2,171, accounting for about 52% of the increase. Market sentiment was normal, and the money-making effect was slightly positive.

Overnight quick facts

US stocks closed higher across the board, and international oil prices fell by nearly 6%: the three major US stock indices collectively closed higher on August 4. The NASDAQ rose 2.59%, the S&P 500 rose 1.79%, and the Dow rose 1.71%. US Treasury Secretary Bessent said that the US and Iran may reach an agreement to reopen the Strait of Hormuz recently. WTI crude oil futures fell 5.69% to 75.77 US dollars/barrel on the same day, and Brent crude oil fell 5.26% to 79.36 US dollars/barrel. The decline in energy costs is expected to ease global inflation expectations.

The central bank launched a reverse repurchase of 500 billion yuan, and the national standard for autonomous driving was implemented: The central bank announced the launch of a 500 billion yuan 3-month reverse buyout reverse repurchase operation on August 5, with a net investment of 200 billion yuan due in August, with a net investment of 200 billion yuan, for two consecutive months. The mandatory national standard for safety requirements for L3/L4 autonomous driving systems was officially released. It is planned to be implemented on July 1, 2027, to clarify the safety and security mechanism for the entire life cycle of the enterprise.

Cooperation between the Mainland and Hong Kong is upgraded, and treasury bond futures are listed on the Hong Kong Stock Exchange: The Securities Regulatory Commission announced ten measures to deepen capital market cooperation between the Mainland and Hong Kong, covering listing financing, rapid ETF registration, etc. The 5-year RMB treasury bond futures were officially listed on the Hong Kong Stock Exchange this week. They are the world's first offshore Chinese treasury bond futures, up 1.11% on the first day. Shangwei New Materials resumed trading on August 5. The company indicated that fundamentals remained unchanged and that net profit for the first half of the year had been reduced by more than 30%.

Trend analysis

On August 5, the three major A-share indices collectively opened lower. The GEM index opened 3.35% lower after surging 5.64% the next day. Strong sectors such as computing power, hardware, and CPO opened and divided, with the communications equipment sector leading the decline. However, small metals, semiconductors, etc. continue to be active. The number of rising companies in the two markets is still higher than the number of falling companies, and risk appetite has not completely declined.

Overseas, US stocks continued to rebound overnight. Progress in US-Iran negotiations drove WTI crude oil down nearly 6% in a single day, and declining energy costs are expected to ease imported inflationary pressure. The central bank invested net capital through buyout reverse repurchases for two consecutive months, providing bottom support with abundant liquidity. In the short term, it is normal for the technology growth sector to enter the stage of differentiation and consolidation after a sharp rise in volume on the previous trading day. The institutional consensus bias is that the market pricing logic is returning to fundamentals. The direction of technological growth, which fell over in July, is expected to usher in a valuation repair window after the interim report results are verified, but we need to pay attention to the progress of the implementation of the US-Iran negotiations and the disturbance of US non-farm payrolls data on global risk appetite.