On January 7th, during the morning trading session, the Shanghai Composite Index exhibited a relatively stable performance within a narrow trading band. Meanwhile, the ChiNext Index experienced a slight retracement after reaching its intraday peak. By the midday break, the Shanghai Composite Index had edged up by 0.29%, nearing the significant 4,100-point threshold. The Shenzhen Component Index followed suit with a 0.35% increase, and the ChiNext Index posted a 0.41% gain.

Trading activity across the Shanghai and Shenzhen bourses was brisk, with the morning session's combined turnover reaching RMB 1.84 trillion, marking a RMB 53.8 billion increase from the previous day. Notably, over 2,500 stocks finished the morning session in positive territory.

The memory chip sector emerged as a standout performer, with several stocks, notably Nata Opto-electronic Material and Hengkun New Material, achieving the daily price limit. The semiconductor industry also witnessed robust growth, with industry giants like SMIC and Hengkun New Material (also a part of the memory chip rally) surging by 20%.

The rare earth permanent magnet sector maintained its momentum, with stocks such as China Rare Earth Nonferrous Metals, Tongcheng New Materials, and GEM Co. all reaching the daily price ceiling.

Leading the gainers were sectors including minor metals, coal, energy metals, tourism and hospitality, insurance, and photolithography equipment concepts. Conversely, sectors such as mining, shipbuilding, aerospace, beauty and personal care, petroleum, titanium dioxide, and digital currency concepts experienced notable declines, featuring among the day's top losers.