The Shanghai Stock Exchange Index fell more than 1%, Kweichow Moutai's market value returned to 2 trillion, precious metals set off a wave of limit drops, the Hang Seng Index fell more than 1%, science and technology stocks generally fell, and Shanghai Silver plunged 12%.

# Source: Wall Street Insights

By Dong Jing

Precious metal stocks saw a sharp intraday correction across the board: Hunan Silver hit the downside limit, Suntech Power dropped over 10%, Baiyin Nonferrous touched the downside limit, and Sichuan Gold, Hunan Gold, Yuguang Gold & Lead, Zhaojin Mining and others led the declines. The consumer staples sector rallied collectively, with beauty care, tourism, food, retail, film and television stocks surging. Lafang Home Chemical, Anji Food, Haixin Food, Kapok Co., Ltd., Hangzhou Jiebai, Zhejiang Culture Film and Television, Hengdian Film and Television and several other stocks hit the upside limit.

The entire photovoltaic industry chain declined, with space photovoltaic and TOPCon battery stocks leading the falls. Earlier, the Shanghai Securities News reported that Elon Musk's team has recently conducted intensive inspections of China's photovoltaic industry chain and held talks with multiple enterprises including GCL Group, JinkoSolar, TCL Zhonghuan and others. Subsequently, many companies issued announcements to clarify that no formal agreements have been signed or orders formed so far. Computing hardware stocks extended their correction, with CPO-related stocks among the top losers. Overnight, the sell-off in U.S. software stocks continued to spread to the entire tech sector including semiconductors and AI concept stocks.

On February 5, A-shares opened lower in the morning, with the three major indices falling across the board: the Shanghai Composite Index dropped 1%, the ChiNext Index fell nearly 2%, and precious metals, computing hardware and photovoltaic industry chain stocks declined collectively. Retail, tourism and other sectors rebounded.

Hong Kong stocks opened lower and moved further down, with the Hang Seng Index and Hang Seng Tech Index both falling over 1%. Tech and internet stocks declined across the board again, with Tencent and Alibaba both dropping over 2%. In the bond market, treasury bond futures all edged higher. In the commodity market, domestic commodity futures fell broadly, with SHFE silver dropping 12% and lithium carbonate hitting the downside limit.

### Core Market Trends:

**A-shares**: As of press time, the Shanghai Composite Index was down 1.03%, the Shenzhen Component Index fell 1.81%, and the ChiNext Index dropped 1.94%.

**Hong Kong stocks**: As of press time, the Hang Seng Index was down 1.27% and the Hang Seng Tech Index fell 1.16%.

**Bond market**: All treasury bond futures trended higher. As of press time, the 30-year main contract rose 0.05%, the 10-year main contract gained 0.03%, the 5-year main contract was up 0.03%, and the 2-year main contract increased 0.02%.

**Commodities**: Most domestic commodity futures declined. As of press time, precious metals led the falls with SHFE silver down 11.97%; new energy materials all dropped, with lithium carbonate falling 10.95%; base metals all declined, with SHFE tin down 7.03%; most chemicals fell, with butadiene rubber dropping 4.54%; most ferrous metals declined, with coking coal down 2.46%; most oil and oilseeds fell, with rapeseed oil dropping 1.70%; non-metallic building materials all declined, with glass down 1.63%; shipping futures led the gains, with the Container Shipping Index (Europe Route) up 4.79%; most energy products rose, with fuel oil gaining 1.77%.

### 12:09 Market Update

On the market, more tech and internet stocks declined than advanced: Bilibili and Kuaishou dropped over 3%, Tencent and Alibaba fell over 2%, NetEase declined over 1%, while Lenovo rose over 1%.

Gold stocks fell across the board, with Zijin Mining dropping over 6%.

The semiconductor sector declined, with Huahong Semiconductor falling over 5%.

**News**: Advanced Micro Devices (AMD) closed down 17.31% on Wednesday, the biggest single-day drop since May 2017. AMD's fiscal Q4 2025 earnings report showed that the company's quarterly revenue exceeded $10 billion for a record high, maintaining a year-on-year growth rate of over 30%, and EPS profit growth slowed but beat analysts' expectations by nearly 16%. However, some analysts noted that despite AMD's better-than-expected revenue and profit performance, its Q1 guidance fell short of expectations.

### 11:58 Market Update

On the market, more individual stocks declined than advanced, with over 3,700 stocks in the Shanghai, Shenzhen and Beijing stock markets trading in red. The half-day turnover reached 1.46 trillion yuan, with the Shanghai and Shenzhen markets seeing a half-day turnover of 1.45 trillion yuan, a decrease of 168.2 billion yuan from the previous trading day. Among sectors, the photovoltaic industry chain declined across the board; gold, base metals and coal stocks led the falls; semiconductor and computing hardware concept stocks corrected significantly. Cross-strait integration, short drama & game and retail theme stocks rallied against the trend.

Specifically, the consumer staples sector advanced against the trend, with beauty care, film and television, food stocks leading the gains. Lafang Home Chemical, Zhejiang Culture Film and Television, Hengdian Film and Television, Haixin Food and several other stocks hit the upside limit.

**News**: Nine ministries and commissions including the Ministry of Commerce issued the *2026 "Happy Shopping for the Spring Festival" Special Activity Plan*, encouraging all regions to increase the number of subsidies for consumer goods trade-ins during the Spring Festival and strengthen support for offline physical retail. Kaiyuan Securities pointed out in a research report that as the Spring Festival is a peak season for food consumption, the release of stocking demand is expected to boost the sector.

The banking sector rallied against the trend, with Xiamen Bank rising over 6%.

Liquor stocks advanced against the trend: Kweichow Moutai rose over 1%, hitting an intraday gain of over 2%, with its total market value reclaiming the 2 trillion yuan mark. After a heavy volume surge last week, Kweichow Moutai's share price has risen by more than 15% cumulatively.

Among the decliners, space photovoltaic concept stocks corrected, with Junda Co., Ltd. and Shuangliang Eco-Energy hitting the downside limit.

**News**: Liu Yiyang, Executive Secretary-General of the China Photovoltaic Industry Association, stated that space photovoltaic technology is still in the early stage of exploration and verification, and it is too early to determine a clear technical direction, which may be one of the reasons for the sharp correction of such concept stocks.

The precious metal sector declined, with Hunan Gold and Hunan Silver touching the downside limit.

**News**: Spot silver plummeted in a straight line today, once dropping over 16% intraday. Spot gold once fell below $4,800 per ounce, with an intraday drop of over 3%.

Computing hardware stocks such as memory chip makers remained sluggish: Focuslight Technologies fell nearly 10%, Yangtze Optical Fibre and Cable dropped over 8%, and TianTong Technology, Hengtong Optic-Electric, Robotec Technology, Decowell Technology and others all saw sharp declines.

**News**: The U.S. software sector suffered its worst sell-off since 2022 on Wednesday. The tech sector sell-off triggered by software stocks has been spreading continuously, and recently popular memory chip manufacturers have experienced a "collective sell-off". Enterprises that have reaped huge profits from the AI-driven memory demand narrative, such as SanDisk, have seen a more severe pullback.

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