Japanese and Korean stock markets hit new historical closing highs, A-share technology stocks plummet

The A-share market experienced a drastic divergence today, with the STAR 50 Index plummeting nearly 6%, and the semiconductor industry chain facing pressure across the board. The Shanghai Composite Index fell nearly 1%, the Shenzhen Component Index fell nearly 2%, and the ChiNext Index fell over 2%. Capital is noticeably shifting towards defensive and policy-benefiting sectors, with properties, electric power, coal, and liquor sectors taking turns to strengthen.

Hong Kong's stock market trend contrasted with the A-shares, with the Hang Seng Index initially declining but quickly rebounding to recover lost ground and rise over 1%. Lenovo Group surged by 25%.

The Nikkei 225 and the Korea Composite Stock Price Index saw significant gains of 2.53% and 3.54%, respectively, both reaching new historical closing highs.

STAR 50 plunges, chip stocks under pressure

The decline of the STAR 50 Index continued to widen in the afternoon, ultimately approaching 6%. SMIC's single-day drop approached 9%, Hua Da Jiu Tian fell over 10%, and mainstream chip targets such as Xie Lian Integration and Hua Hong Semiconductor普遍deep plummeted.

This round of adjustment is not an isolated event. Previously, the sector had accumulated a significant increase driven by AI computing power and the narrative of domestic substitution, leading to concentrated profit-taking pressures. The synchronized pullback in high-growth sectors such as AI computing power, rare earth permanent magnets, and commercial aerospace reflects a systemic contraction of short-term risk appetite.

The turnover on the Shanghai and Shenzhen markets in the first half of the day reached 2.12 trillion yuan, with an increase of over 330 billion yuan compared to the previous trading day, indicating that the selling was not a low-volume, passive decline, and the market turnover was quite active.

Real estate and electric power sectors continue to strengthen

The State Council of China issued the "Urban Renewal" Fifteenth Five-Year Plan, proposing to achieve significant progress in urban renewal actions by 2030, providing policy support for the real estate sector. Vanke A hit the daily limit, with Greenland Holdings and Sunshine Stock following suit, and the sector's overall sentiment noticeably warming up.

Electric power stocks continued to be strong, with Huadian Energy achieving five consecutive trading boards, Jin Kong Electric Power and Shenzhen Nan Electric A among many stocks hitting the daily limit. Data from China Southern Power Grid shows that this year, the overall network power load has set a historical high 20 times, breaking the seasonal pattern where peak values were concentrated in July and August. The tight supply and demand pattern is a continuous catalyst for electric power stocks.

The liquor and duty-free sectors strengthened in tandem, with Jiuguijiu hitting the daily limit, China Duty Free touching the daily limit, and the overall consumer goods sector showing a counter-trend repair trend.

Lenovo leads the rise in Hong Kong stocks, and tech stocks stabilize

Lenovo Group rose by over 20% today, once surging by more than 30%, with the stock price reaching a high of 25.7 Hong Kong dollars, which is nearly double compared to the closing price of 13.15 Hong Kong dollars on May 21. Dell's financial reports greatly exceeded expectations, and strong AI PC demand from HP led the market to revalue the profit elasticity of the AI PC industry chain, with Lenovo, as the world's largest PC manufacturer, benefiting the most directly.

The tech internet sector as a whole stabilized, with Baidu rising by nearly 9%, Meituan rising by 3.5%, and Tencent, Alibaba, and JD.com following suit. Compared with the significant pullback in A-share tech stocks, Hong Kong tech stocks have shown greater resilience.

Japanese and Korean stock markets set historical highs

The Asia-Pacific's other major markets performed strongly, with the Nikkei 225 Index up 2.53%, and the Korea Composite Stock Price Index up 3.54%, both reaching new historical closing highs. In sharp contrast to the adjustment of A-share tech stocks, this shows that global funds still maintain a positive attitude in the allocation of Asia-Pacific technology assets, but there is a clear divergence in the choice of different markets.