China's equity market closed mixed on Monday as investors rotated out of small‑cap and high‑tech themes into commodity and energy plays. The Shanghai Composite slipped 0.09% while the Shenzhen Component and the ChiNext (growth board) fell 0.85% and 0.91% respectively, with the ChiNext’s intraday weakness exceeding 1%. Turnover rose markedly to RMB 3.25 trillion, about RMB 163 billion higher than the previous session, underlining active but selective trading.
Precious metals and oil names powered the day's winners. The non‑ferrous metals sector led gains, driven by a surge in precious‑metals concepts: several gold miners including Sichuan Gold staged multiple limit‑ups over recent sessions, while Zijin Mining hit a record high. On the oil front, CNOOC (China National Offshore Oil Corporation) climbed to its own historic peak and small upstream and midstream oil names showed aggressive momentum, with Intercontinental Oil & Gas recording repeated limit‑up days.
Renewable and chemical plays also found intermittent buying. Some space‑related photovoltaic suppliers and integrators — such as Mingyang Smart and GCL Integration — recovered to limit‑up territory during the session, and a handful of chemical producers rallied sharply. Those sector moves suggest profit‑seeking flows chasing inflation‑sensitive or commodity‑exposed stocks rather than broad market confidence.
At the same time, a large swathe of the market underperformed: more than 3,700 stocks closed lower. Commercial‑space companies and semiconductor equipment makers were among the weakest, with several commercial‑space names plunging and state‑linked satellite operators like China Satcom and China Satellite hitting limit‑down. The divergence between resource winners and technology/space losers produced a visibly fractured market narrative.
The sector split reflects two simultaneous forces: a fresh bid for hard‑asset protection and continued skepticism about capital‑intensive, high‑valuation technology themes. Globally, precious metals have received renewed attention amid volatile macro data and sticky commodity prices, which filters into A‑share demand for miners and bullion‑linked ETFs. Domestic retail appetite for physical silver and gold, plus concentrated fund flows into related ETFs, have amplified moves in smaller mining stocks.
For policymakers and institutional investors the event is a reminder that short‑term liquidity and theme rotations can amplify volatility. Heavy concentration in a handful of resource names raises the risk of exaggerated swings if metals or oil prices retrace. Meanwhile, weakness in semiconductor equipment and commercial‑space segments highlights persistent concerns about the near‑term earnings outlook and policy support for capital‑intensive, high‑tech investment.
Looking ahead, the market’s path will hinge on whether commodity prices sustain their rally and whether authorities step in to temper speculative excess. If metal and oil prices continue to climb, resource sectors may extend leadership, but a broad rebound in technology and growth stocks will likely require clearer improvement in earnings expectations and external demand. For foreign investors, the episode underscores the A‑share market’s sensitivity to domestic retail flows and commodity price dynamics, making thematic allocation as important as macro views.