On Friday, June 6th, A-shares experienced volatile adjustments throughout the day. The ChiNext Index closed down 0.45%. Computing power concept stocks remained active, while silver concept stocks collectively strengthened, and stablecoin concept stocks underwent corrections.
In the A-share market, the Shanghai Composite Index edged up 0.04% at close, while the Shenzhen Component Index fell 0.19%. Individual stocks showed mixed performances, with the day’s trading volume exceeding 1.17 trillion yuan. Sector-wise, nonferrous metals, computing power concepts, and pesticides led the gains. IP economy, stablecoin concepts, and securities were among the top decliners. Specifically, computing power concept stocks continued their rebound, with Huamai Technology, Nanling Technology, and Meili Cloud hitting the daily limit up. Silver concept stocks surged collectively, with Hunan Silver, Silver & Gold Nonferrous, and Shengda Resources all closing at the daily limit up. Stablecoin concept stocks faced adjustments, with Hope Group falling over 10%. In Hong Kong, the Hang Seng Index fell 0.48% and the Hang Seng Tech Index dropped 0.63% by the close. New consumption concept stocks performed weakly, with Mixue Group and Buluke falling over 5%. The nonferrous metals sector rose collectively, with International Gold Group surging over 11%. Additionally, SMIC fell over 4%, NIO dropped over 3%, while Kuaishou gained 8.4%. In the bond market, government bond futures closed higher. The 30-year main contract rose 0.35%, the 10-year main contract gained 0.17%, the 5-year main contract increased 0.08%, and the 2-year main contract edged up 0.02%. For commodities, domestic futures closed mostly higher. Shanghai silver surged over 4%, coking coal and glass rose over 3%. BR rubber and logs gained over 2%, while Shanghai tin and international copper increased over 1%. Hot-rolled coil and PTA saw slight gains. European container shipping futures fell over 4%, alumina dropped over 2%, urea declined over 1%, with eggs and ethylene glycol posting minor losses. On the news front, according to Xinhua News Agency, the leaders of China and the United States held a phone conversation on the evening of June 5th. Silver concept stocks surged, leading the precious metals sector higher. Hunan Silver, Silver & Gold Nonferrous, and Zhongrun Resources hit the daily limit up, while Xingye Silver Tin and Shengda Resources rose over 5%.Silver stocks in the Hong Kong market also recorded significant gains, with China Silver Group soaring over 20%. According to earlier mentions on Baidu, spot silver surged by up to 4.5% on Thursday, breaking above the $36 per ounce mark to reach its highest level since February 2012. Alexander Zumpfe, a senior trader at German precious metals refiner Heraeus Group, noted that this rally is driven by technical momentum, improved fundamentals, and broader investor interest.
In terms of demand, a research report from China Securities Futures points out that silver demand can be categorized into industrial, jewelry, silverware, investment, and photographic uses. Industrial silver demand has continued to grow since 2022, with an estimated growth rate of around 4% in 2024. The global installation boom in 2023 and 2024 has led to a sharp increase in silver demand from photovoltaics, with its share of total silver demand rapidly rising from about 8% to over 16%. Guoxin Futures stated that the combination of explosive industrial demand and the gold-silver ratio correction is driving a catch-up rally. After a technical breakout above $36 per ounce to a 13-year high, the ongoing supply-demand gap suggests further upside potential for silver prices. Divergence among the “New Consumption Trio”: Mixue Group fell over 5%, while Pop Mart closed up 0.74% after rising over 2% intraday. Lao Feng Xiang edged down 0.11%, having dropped nearly 3% during the session. According to earlier reports from China Fund News, Kenny Ng, a strategist at Everbright Securities International, commented that Mixue Bingcheng and Lao Feng Xiang currently have high valuations. Mixue remains fundamentally in the consumer sector, requiring more cautious valuation assessments. Pop Mart has shown rapid profit growth in the past, and recent new products have gained market recognition, which may continue to support its valuation in the future. The computing power concept strengthened during the session, with Qingyun Technology closing up 15% after hitting a 20% intraday limit, 263 Networking, and UCloud, Huibo Yuntong, Tongniu Information also advancing. According to the latest IDC forecast, China’s computing power scale will reach 1037.3 EFLOPS by 2025 and is expected to hit 2781.9 EFLOPS by 2028. CITIC Securities pointed out that China’s computing power market is still developing. While there may be some “short-term computing power surplus” currently, compared to global and U.S. markets, domestic computing-related capital expenditures and data center numbers remain relatively low, making “long-term shortage” the primary industry logic. Risk Warning and Disclaimer: There are risks in the market, and investments should be made cautiously.This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users.
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