A-shares midday review: Shenzhen Component Index opened lower and then rose to nearly 1% gain by midday, with innovative medicine and lithium battery sectors experiencing a collective surge

China’s A-share three major indexes rose across the board in the morning session. As of the midday close, the Shanghai Composite rose 0.26%, the Shenzhen Component rose 0.93%, and the ChiNext Price Index rose 0.83%. The Northern Stock 50 Index fell 0.06%. In the first half of the day, the combined trading value of the three markets—Shanghai, Shenzhen, and Beijing—was 114.69 billion yuan, down 86.3 billion yuan from the previous day. More than 3,700 stocks across the market were trading in the green.

On sector and theme fronts, energy metals, minor metals, innovative drugs, fertilizers, chemical raw materials, precious metals, dairy, and battery-related sectors led the gains. Power, coal mining and processing, banks, insurance, port and shipping, and wind power equipment sectors were among the biggest decliners. On the trading screen, domestic innovative drug “going global” BD deals continued to reflect high optimism and buoyed a breakout in the sector. Tianjin Pharmaceuticals, Lianhuan Pharmaceutical, Zhaoyang New Drug, and nearly 10 other stocks hit their daily limit. Affected by the ongoing escalation of Zimbabwe’s lithium mine export ban, stocks in new-energy tracks such as lithium mines and batteries performed strongly; Rongjie Co., Ltd. recorded four consecutive daily limit-ups. In addition, sectors including chemicals, precious metals, and dairy also showed strength. On the other hand, most power-related stocks adjusted lower, with Zhejiang Xinneng and Hunan Development leading the declines. Coal and oil & gas sectors, along with others, tracked the choppy back-and-forth moves in international oil prices; Zhengzhou Coal & Power, Shaanxi Heimao, and Yunmei Energy all fell.