A-share closing review | Opened lower and rose higher, all sectors rebounded, STAR 50 surged 4.78%, semiconductor equipment and electronic materials all exploded

According to Zhitong Finance APP, on August 5th, the market rebounded amid fluctuations, with the three major indices opening lower and closing higher. By the end of the trading day, the SSE Index rose by 1.47% to 3878.43 points, the Shenzhen Index increased by 1.86% to 14144.20 points, the ChiNext rose by 1.32% to 3535.14 points, and the STAR 50 Index led the major indices with a rise of 4.78% to 1693.67 points. The North Exchange 50 rose by 2.37% to 1119.46 points. The total trading volume of the Shanghai and Shenzhen markets reached 26,596.35 billion yuan, an increase of 4,460.43 billion yuan compared to the previous trading day. A total of 3725 stocks rose, 1621 fell, with 105 hitting the daily limit up and 1 hitting the daily limit down, resulting in an increase ratio of about 67%.

On the sector front, target materials (+9.75%), glass fiber (+7.90%), electronic chemicals (+7.86%), precious metals (+7.72%), components (+6.57%), and semiconductors (+5.80%) led the gains; while communication equipment (-1.98%), large state-owned banks (-1.67%), liquor (-1.53%), banks (-1.14%), traditional Chinese medicine (-1.01%), and power (-0.66%) saw the largest declines.

Driving Factors

On that day, A-shares rebounded across the board, with the STAR 50 leading the gains at 4.78%. The semiconductor equipment, target materials, and MLCC sectors saw significant increases, with the trading volume in the two markets exceeding 440 billion yuan, reaching 2.66 trillion yuan, indicating a significant recovery in market activity. Overnight, the three major U.S. stock indices all closed higher, with the Nasdaq Index rising by 2.59%. AMD announced a revenue of 11.54 billion USD for the second quarter of 2026, a year-on-year increase of 50%, and adjusted earnings per share increased by 246% year-on-year, further boosting global semiconductor market sentiment.

In terms of news, according to Reuters, South Korea's Samsung Electronics and SK Hynix are evaluating the use of Chinese semiconductor manufacturing equipment for their factories in China. Samsung Electronics subsequently denied the related reports, and SK Hynix declined to comment; the semiconductor equipment sector surged, with Zhengfan Technology hitting the daily limit up, Zhongwei Company rising by 12.67%, and Tuojing Technology increasing by 12.14%.

The International Semiconductor Industry Association (SEMI) predicts that global semiconductor equipment sales will reach 165.9 billion USD in 2026, a year-on-year increase of 23.2%, and are expected to rise to 229.5 billion USD by 2028. In terms of electronic fabrics, a Citigroup report cited SCI99 data showing that the average prices of the three major electronic fabric series (1080, 2116, and 7628) rose by 17%-18% month-on-month in August, with cumulative increases of 118%-165% for the year, and several leading glass fiber companies are expected to significantly increase their mid-year reports.

Popular Sectors

1. Semiconductor Equipment and Target Materials: Zhengfan Technology hit the daily limit up, Zhongwei Company rose by 12.67%, Tuojing Technology increased by 12.14%, and several stocks including Youyan New Materials, Fuzheng Technology, Bojie Co., and Jinhaitong (2 consecutive limit ups) also hit the daily limit up, while Jiangfeng Electronics rose by 11.16%. In terms of news, Samsung Electro-Mechanics announced a uniform price increase of 30% for MLCC shipments starting from August 1st, combined with SEMI's prediction that global semiconductor equipment sales will reach 165.9 billion USD in 2026, a year-on-year increase of 23.2%, resonating with expectations for domestic substitution and price increases 2. Glass Fiber and Electronic Fabric: China National Materials Technology and Honghe Technology hit the daily limit, International Composites rose by 14.04%, China Jushi closed up 8.54%, and Shandong Glass Fiber rose by 7.28%. The catalyst was the 17%-18% month-on-month increase in the average price of electronic fabric in August, with a cumulative increase of 118%-165% for the year (Citi quoted SCI99 data). China Jushi expects a year-on-year increase of 65%-85% in net profit attributable to the parent company for the first half of the year, International Composites anticipates a pre-increase of 151%-194%, and Honghe Technology expects a pre-increase of 280%-364%. The electronic fabric industry is experiencing both volume and price increases, opening up profit margins.

3. Intelligent Driving and AI Computing Power: Suoling Co., Zhejiang Shibao, Xingmin Zhitong, and Shanzi Gaoke hit the daily limit, Litong Electronics had three boards in four days, Industrial Fulian hit the daily limit, Unisplendour rose 7.63% during the session, and ChuanZhi Education hit the daily limit. AI applications have repeatedly strengthened, with Newcapec and Boyan Technology hitting the daily limit. A research report from China Galaxy Securities pointed out that the domestic large model Kimi K3 has achieved rapid adaptation with multiple domestic computing power platforms on Day 0, driving demand for domestic super nodes, and subsequently boosting the supporting demand in the server, switch, optical module, and liquid cooling industries.

Adjusted Sectors

The communication equipment sector fell by 1.98%, leading the decline in the two markets, with Zhongji Xuchuang in the CPO/optical communication direction down 7.27% and Xinyi Sheng down 5.29%. Zhongji Xuchuang's trading volume exceeded 67.5 billion yuan, setting a historical record. The state-owned large banks sector fell by 1.67%, the liquor sector fell by 1.53%, and the power sector fell by 0.66%. The technology hardware stocks in the aforementioned directions had significant increases earlier, with the CPO sector rising over 10% in a single day on August 4, followed by a correction on that day