A-Share Shanghai Composite Reclaims 4,000 Points as STAR 50 Surges Over 3% Led by Semiconductors
Claire Weston
On June 12 the Shanghai Composite rose 0.95% to reclaim 4,000; the STAR 50 jumped over 3% in a single session. Semiconductor equipment and molybdenum stocks drove the rally, but three brokerages warn the move has limited staying power.
Who led this rally?
Semiconductor equipment stocks surged in the morning session. Naike Equipment rose over 15%; Foxconn Industrial, SiCarrier Technology, ACM Research Shanghai and Piotech all posted strong gains.
The catalyst: several tier-one equipment suppliers to SK Hynix recently requested price hikes of 3%–4%. SK Hynix has asked them to submit supporting documentation.
This means → equipment-side pricing power is transmitting from the Korean supply chain into A-shares. The market is front-running that logic.
Why did molybdenum stocks suddenly spike?
Jinduicheng Molybdenum and Shenglong both hit two consecutive daily limits. Antai Technology hit its ceiling; China Molybdenum and Yongshan Lithium also rose sharply.
The core driver: SK Hynix has completed production validation of 375-layer NAND flash and plans to move mass production to its Cheongju M15 fab by year-end.
In plain terms = this flash chip replaces tungsten with molybdenum for its word lines — the tiny wires inside a flash chip that control data reads and writes. Molybdenum has lower resistance, so reads and writes get faster. Whoever produces molybdenum stands at the front of the queue.
What do brokerages say about the outlook?
Caixin Securities: a short-term stabilization needs three things at once — heavy-volume rally candles, no consecutive negative feedback from the STAR segment, and a rebound in overseas markets. None of the three has materialized; the advice is to watch and control position size.
Tianfu Securities: U.S. PPI just hit a fresh three-year high; Middle East tensions and the risk of a Strait of Hormuz closure keep inflation expectations elevated. Factor in the Fed's June meeting, the World Cup window and half-year-end effects — clarity may not arrive until late June.
Everbright Securities: expectations for tighter overseas liquidity have not reversed; geopolitical risk persists. The short-term path is likely low-volume choppy weakness; a repair opportunity requires a meaningful pick-up in turnover.
Where do all three brokerages agree?
The shared verdict: current thematic trades have limited staying power. The market's core tension is shifting liquidity expectations compounded by external disruptions.
The medium-term catalyst they all point to is AI: as overseas big-tech midyear results land between mid-July and late August, the pricing logic for AI-linked stocks should return to fundamentals.
This means → whether this rally can last hinges on two checkpoints: whether the STAR segment avoids consecutive negative feedback, and whether overseas earnings provide real profit support for the AI supply chain.
Content is for reference only, not financial advice.