On the morning of February 26th, the three primary stock indices in China's market exhibited a mixed performance. The Shenzhen Component Index managed to rebound from its earlier lows and moved into positive territory. In contrast, the ChiNext Index demonstrated relatively weaker momentum, and there was a marked divergence between the yellow line (representing the weighted average price of all stocks) and the white line (representing the price movement of the index's constituent stocks). Trading activity in both the Shanghai and Shenzhen markets was brisk, with the morning session's turnover reaching 1.64 trillion yuan, an increase of 117.3 billion yuan compared to the previous trading day. However, the overall market sentiment leaned bearish, as over 2,900 stocks finished the morning session in the red.
In terms of sector performance, hot investment themes rotated swiftly, but computing hardware stocks maintained their strong momentum. Concepts related to PCBs (Printed Circuit Boards), CPOs (Co-Packaged Optics), and liquid-cooled servers witnessed a robust rally, with multiple stocks, including Shennan Circuits and Han's Laser, surging to their daily price limits. Other sectors, such as power, gas turbines, and minor metals, also showed signs of strengthening. Conversely, the lithium battery sector and the cinema & theater industry lines experienced declines. By the midday close, the Shanghai Composite Index had edged down by 0.08%, while the Shenzhen Component Index had climbed 0.28%, and the ChiNext Index had slipped 0.39%.
