China’s stock market fell back into the red in mid‑day trading as the three major A‑share indices each dropped more than 1%, reflecting a fast rotation of investor sentiment after a recent rally. The Shanghai Composite closed down 1.32%, the Shenzhen Component fell 1.41% and the ChiNext index lost 1.18%, with the Nasdaq‑style STAR 50 (Kechuang 50) off more than 2% intraday. Turnover across Shanghai and Shenzhen amounted to RMB 1.64 trillion for the half‑day session, about RMB 290.4 billion lower than the previous trading day, indicating lighter volume amid the pullback.
Market action was highly bifurcated. Defensive and industrial equipment names in the power‑grid segment outperformed, pushing several grid‑equipment manufacturers such as Sanbian Technology (Sanbian Keji), Baobian Electric and Shuangjie Electric to daily limits, while traditional hot sectors including white spirits and film exhibition produced isolated rallies — Huangtai Liquor achieved a third consecutive daily limit‑up and Hengdian Film scored a three‑day rally.
At the other extreme, resource stocks and the semiconductor supply chain carried much of the day’s downside. Precious‑metals and oil & gas producers were hit hard, with multiple firms — among them Zhaojin Gold, Sichuan Gold and Zhongman Petroleum — suspended after hits to their lower daily limits. The semiconductor ecosystem also slumped: Wingtech (Wentai Technology) fell to the daily limit and names such as Kaipu Cloud and Mingwei Electronics plunged more than 10%.
Nimble pockets of momentum remained visible in AI application plays, underlining the selective nature of the sell‑off. Remote sensing and AI‑application companies like Yaowang Technology (Yaowang Keji) reached daily limit‑up territory and Tongda Hai jumped over 15% as investors continued to rotate into perceived beneficiaries of ongoing AI demand, even as broader technology and chip supplier segments retrenched.
The pullback in China dovetails with wider regional weakness in commodity‑sensitive markets. Commodities and metals price drops earlier in the day sent benchmark indices lower in countries such as Indonesia and South Korea, amplifying pressure on China’s resource‑heavy names. The combination of profit taking after January gains and thinner turnover suggests investors are recalibrating positions rather than abandoning the market wholesale.
For global investors, the move highlights two themes: first, the persistent vulnerability of commodity and chip supply chains to short‑term swings in prices and sentiment; second, the unevenness of China’s current rally, in which headline indices can be steady while underlying breadth is poor and volatility remains high. The intraday pattern — concentrated sell‑offs in resource and semiconductor stocks alongside isolated AI and consumer rallies — underscores a market that is still searching for leadership as macro and sectoral narratives evolve.