A-Share Market Opening on July 1: Precious Metals, Insurance, and Innovative Drugs Lead Declines
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A-shares opened mixed on July 1 — the Shanghai Composite slipped 0.09% as logistics and e-commerce led gains while precious metals, insurance, and innovative pharma led losses; brokerages say the tech thesis holds, but the driver is shifting from sentiment to earnings, widening divergence within sectors.
What moved at the open?
The Shanghai Composite dipped 0.09% and the ChiNext fell 0.15%; all three major indices opened mixed.
Logistics and internet e-commerce led gains — capital favored consumption and distribution plays.
Precious metals, insurance, and innovative pharma dropped the most. This means → sectors with large prior run-ups are seeing a round of profit-taking.
Can tech stocks still be chased?
Huabao Securities believes the AI industry thesis has not faded; tech remains the main thread and stays strong near-term.
But the firm warns that capital may start rotating within tech — selling high-flyers and moving into previously oversold or lagging sub-sectors.
In plain terms = the broad tech call is intact, but the phase of "buy any tech name and win" may be ending. Picking the right sub-sector now matters more than picking the right mega-theme.
What is the single biggest catalyst in July?
Orient Securities says July's AI consensus will center on earnings previews — whether companies actually made money becomes the key variable separating winners from losers.
On the technical side, the Shenzhen Component and ChiNext indices are still trending higher in a volatile channel; the Shanghai Composite is expected to test the 4,130 area this week.
This means → the trend is alive, but the gap between individual stocks will widen: those with earnings support keep running; those without may fall behind.
Will the "crowding" break?
Founder Securities notes that both ChiNext and the STAR 50 have hit new highs since the rally began, yet structural divergence is severe.
Hot money is heavily concentrated in high-growth AI hardware and semiconductor names, and the crowding trade is intensifying.
The firm's verdict: the core logic of this tech bull has not fundamentally weakened, but the driver is shifting from "sentiment + expectations" to "earnings + orders", and volatility will rise.
Sectors to watch: batteries, computing power, robotics, brokerages, and commodities.
Content is for reference only, not financial advice.