A-share morning rally: over 4,500 stocks rise, semiconductor chain leads

Shanghai, September 18 – The Shanghai Composite Index fluctuated and rose during the morning session, while the ChiNext Index and Shenzhen Component Index opened higher, pulled back, and then rebounded. Combined trading volume in the Shanghai and Shenzhen markets reached 1.32 trillion yuan in the first half of the day, an increase of 74.3 billion yuan compared to the previous trading day. More than 4,500 stocks advanced across the market.

Sector Performance

Hotspots rotated rapidly during the session:

• Chip Industry Chain – Strengthened collectively. Photoresist-related Huasoft Technology hit its second consecutive daily limit-up. Advanced packaging leader Huatian Technology hit the daily limit-up. Storage chip player Chengbang Shares and computing power chip firm Suiyuan Technology rose nearly 10%, with Suiyuan hitting a new all-time high.
• Major Consumer Stocks – Guofang Group, Guoguang Chain, and Shaanxi Tourism hit daily limits.
• Robotics – Kesen Technology recorded three limit-ups in five days.
• Newly Listed Stocks – Remained active. Xihua Technology hit four consecutive daily limits. Makong Shares and Hai'an Group reached their daily limits.
• Automotive Sector – Performed weakly, with Zotye Auto, Jiangling Motors, and others declining.

Index Close (Morning Session)

| Index | Change | |-------|--------| | Shanghai Composite Index | +1.04% | | Shenzhen Component Index | +1.52% | | ChiNext Index | +2.11% |

Limit-Up Activity

In the morning session, there were 63 daily limit-up hits (excluding ST stocks and newly listed stocks that did not open), with a sealing rate of 73%. Nine stocks achieved consecutive daily limits:

• Four consecutive daily limits: Huaci Shares, Xihua Technology
• Two consecutive daily limits: Nanhua Bio, Huasoft Technology, Xin Hongze, Jingwei Shares, Huafang Shares, Longtou Shares, Kesen Technology

Semiconductor Industry Chain

The semiconductor industry chain surged across the board, led by the advanced packaging concept. Torrance, Gongjin Shares, Chengbang Shares, and Huike Shares hit daily limits. Changdian Technology, Jingwei Huikai, Fudan Microelectronics, and Novosense ranked among the top gainers.

News Front: Morgan Stanley's latest industry research report noted that driven by the rapid development of the AI industry, the advanced packaging segment possesses long-term growth potential. The domestic advanced packaging market is expected to reach a scale of hundreds of billions of yuan by 2029.

Storage Chip Concept

The storage chip concept also strengthened, with Huatian Technology and Baicheng Shares hitting daily limits. Puran Shares, Zhongke Feice, Shengjing Micro, Shengbang Shares, and Jingyi Equipment ranked among the top gainers.

News Front: Sumit Sadana, Senior Advisor to the CEO of Micron Technology and former Executive Vice President and Chief Commercial Officer, predicted that meaningful new supply would not begin ramping up until 2028. Separately, sources indicated that SK Hynix is negotiating a cooperation agreement with Intel, potentially marking the first time memory chips are produced on U.S. soil. One option involves SK Hynix leasing part of Intel's Ohio factory site. Another alternative is for SK Hynix to form a joint venture with Intel and major cloud service providers.

Computing Hardware Stocks

Computing hardware stocks fluctuated but trended higher. Youxun Shares, Taichen Optics, Mingpu Optical & Magnetic, Liantek Technology, and Shijia Photonics rose more than 6%. Heavyweights such as Innolight, Zhongji InnoLight, Tianfu Communication, and Dongshan Precision followed suit with gains.

News Front: On September 17, 2026, NVIDIA CEO Jensen Huang stated at an AI event in Scotland that NVIDIA expects chip sales in 2027 to reach approximately twice the current annual level. A CICC research report similarly noted that order backlogs for some high-speed optical chip companies have extended into 2028 and beyond, with visibility for optical module orders covering 2027 and beyond.

Major Consumption Sector

The major consumption sector remained active, with retail stocks performing notably well. Guofang Group, Guoguang Chain, and Shanghai Jiubai hit daily limits, while Nanning Department Store, Maoye Commercial, Central Shopping Mall, and Sanjiang Shopping followed with gains.

News Front: Data released by the National Bureau of Statistics showed that total retail sales of consumer goods from January to August amounted to 32.7569 trillion yuan, representing a year-on-year increase of 1.1%. Excluding automobiles, retail sales of consumer goods totaled 30.1764 trillion yuan, growing by 2.7%.

Market Summary

The three major indices fluctuated upward during the morning session, with the ChiNext Index gaining over 2% and more than 4,500 stocks advancing across the market. Trading volume also increased. Notably, the semiconductor industry chain surged across the board, with sub-sectors such as advanced packaging, storage chips, and semiconductor equipment ranking among the top performers. Computing hardware stocks experienced intraday divergence before trending higher. Additionally, sectors such as retail, agriculture, and newly listed stocks delivered strong performances, reflecting relatively active market sentiment. Investors may continue to seek structural opportunities amid hotspot rotation in the coming sessions.

Market News Highlights

1. Bank of Japan Raises Interest Rates by 25 Basis Points

The Bank of Japan raised interest rates by 25 basis points, increasing the target rate from 1.00% to 1.25% — the highest level in 31 years — in line with market expectations. The decision was passed by a vote of 7 to 2.

2. Ministry of Housing and Urban-Rural Development: Significant Changes in Real Estate Supply-Demand Dynamics

The State Council Information Office held a press conference as part of the "Starting Well in the '15th Five-Year Plan'" series. Zhang Xuetao, Director-General of the Real Estate Market Supervision Department at the Ministry of Housing and Urban-Rural Development, stated that the real estate market is currently experiencing "two transformations":

• First: Significant changes have occurred in the supply-demand dynamics of the real estate market.
• Second: The real estate sector has entered the era of existing inventory. The proportion of second-hand housing transactions rose from 27% in 2020 to 46% in 2025, and reached 52% in the first eight months of this year. Surpassing the 50% mark signifies entry into the era of existing inventory.