On October 8, the three primary A-share indices initially climbed during early trading hours but then embarked on a downward trajectory, with the sell-off accelerating in the afternoon session. By the closing bell, the Shanghai Composite Index had retreated by 0.79%, the Shenzhen Component Index tumbled 2.07%, the ChiNext Index slid 3.15%, and notably, the STAR 50 Index plummeted a staggering 4.82%. Trading activity on the Shanghai and Shenzhen stock exchanges surged to RMB 1.68 trillion, marking a RMB 244.1 billion increase from the previous trading day, amidst a backdrop where over 3,700 stocks finished in negative territory.

Sector-wise, AI hardware stocks, particularly those in the semiconductor and CPO (Co-Packaged Optics) segments, underperformed significantly, with the optical communication sector spearheading the downturn. Several stocks, including Yuanjie Technology and Changguang Huaxin, hit their lower circuit limits, while Tianfu Communication witnessed a more than 10% drop in the afternoon. Meanwhile, Changxin Technology, a leading player in the storage chip sector, saw its shares plummet over 8% during intraday trading.

In contrast, the banking sector demonstrated remarkable resilience, with Bank of China, Industrial and Commercial Bank of China, and Bank of Hangzhou all scaling all-time highs.