Morning session on the A-share exchange: Shanghai Index surpasses 4100 points, specialized sectors drive gains

Wednesday trading session on the Chinese stock market brought positive momentum for investors. By midday, the Shanghai Composite index reached over 4100 points, recording a 0.3% increase. At the same time, the Shenzhen Component showed a 0.57% gain, while the ChiNext Index moved up by 0.1%. The Beijing 50 Index posted a solid increase of 0.55%, signaling strong interest in blue-chip stocks.

Trading activity was clearly boosted – the total turnover across the three main exchanges (Shanghai, Shenzhen, Beijing) amounted to 2081.9 billion yuan. Compared to the previous day, this represents an increase of 300.4 billion yuan, indicating heightened market participant engagement. Broad market interest was reflected in gains in over 2300 securities.

Leaders of Gains: AI and Space Exploration Dominate

Among sectors, there is a noticeable shift in investor preferences. Applications of artificial intelligence remain at the top of the interest list, along with gains in defense, commercial space exploration, and smart healthcare sectors. Additional momentum is provided by oil and gas extraction, cloud computing services, retail, minor metals, and international payments. There was also interest in controlled nuclear fusion topics.

Meanwhile, defensive sectors and some traditional industries showed weakness. The banking sector, glyphosate producers, airport operators and airline services, brain-computer interface technologies, cement producers, and the agricultural sector remained below the overall upward trend.

Rare Earth Metals and Aerospace ETFs Capture Investor Attention

In the ETF segment, there is a clear differentiation in performance. The critical raw materials sector showed particularly strong momentum – the Rare Earth ETF issued by E Fund increased by 3.57%, and the Harvest Rare Earth ETF rose by 3.54%. Interest in the space sector remains strong, confirmed by the Tianhong Aerospace ETF up 3.54% and the Penghua Satellite ETF up 3.43%.

The AI application segment continues to attract capital – GF Fund Media ETF increased by 3.39%. Meanwhile, the semiconductor industry is correcting – the Sci-Tech Innovation Semiconductor ETF fell by 1.83%, the Semiconductor Materials ETF by 1.79%, and the Sci-Tech Innovation Semiconductor ETF Penghua by 1.77%. Pressure on sectors modeled after foreign benchmarks is reflected in declines in the Nasdaq Biotechnology ETF and the S&P Biotechnology ETF, each down 1%.

Current market dynamics suggest a rotation of capital towards high-tech sectors and strategic raw materials, while cyclical and traditional materials sectors await an impulse.