A-shares halt eight consecutive days of gains! The Shanghai Composite Index closes down 0.25%, with the combined trading volume of the two markets exceeding 3 trillion yuan for five consecutive days

Investing.com - Tuesday, May 12th, the A-share market experienced fluctuations and adjustments, with the Shanghai Composite Index stopping its eight-day winning streak, and the Shenzhen Component Index falling over 1% intraday.

Today’s market saw more declines than gains, with over 4,000 stocks rising across the entire market, three consecutive days with over 100 stocks hitting the daily limit-up, and more than 1,300 stocks falling. The combined trading volume of the Shanghai and Shenzhen markets was 3.24 trillion yuan, shrinking by 296.2 billion yuan compared to the previous trading day, with trading volume exceeding 3 trillion yuan for five consecutive trading days.

By the close, the Shanghai Composite Index fell 0.25%, closing at 4,214.49 points; the Shenzhen Component Index declined 0.47%, closing at 15,824.92 points; the ChiNext Index (price) rose 0.15%, closing at 3,934.88 points; and China A50 futures index increased 0.51% before the deadline, at 15,960 points.

In terms of market sectors, the power grid equipment sector surged and fluctuated, with Sun Cable, Han Cable Co., and Dalian Electric Porcelain hitting the daily limit-up. The optical fiber concept strengthened against the trend, with Tongding Interconnection hitting four consecutive limit-ups, and Hangdian Co. reaching the daily limit. The CPO concept was active, with the leading optical module company Zhongji Xuchuang breaking through 1,000 yuan, becoming the second stock on the ChiNext to reach that level. The robotics concept also showed strength against the trend, with Baida Precision Engineering and Jintuo Co. hitting the daily limit-up.

FTXIN +0.42% SSEC -0.25% SZI -0.47% 002491 +9.99% CHINEXT C -0.43%

FTSE China A50 Index

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Closing · 14:59:59 · CNY

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FTXIN9 +0.42% SSEC -0.25% SZI -0.47% 002491 +9.99% CHINEXT C -0.43%

Analysis FTXIN9

On the downside, the pork concept experienced fluctuations and adjustments, with Huatong Co. hitting the limit-down, and TianKang Biological, Jinxin Agriculture, Wens Foodstuffs, and Zhengbang Technology among the biggest decliners. The energy metals sector weakened, with Hanrui Cobalt falling over 7%, and Yongshan Lithium and Tianqi Lithium dropping nearly 3%.

Guo Yiming of Jufeng Investment pointed out that although the trading volume of the two markets shrank compared to previous days, it still firmly stayed above 3 trillion yuan, indicating that liquidity remains ample. Additionally, the market is about to face a key external variable—Trump’s visit to China. The expectation of a phased easing in major power relations is heating up; if more positive signals are exchanged bilaterally, it will directly boost export chains, manufacturing, and overall market risk appetite. Divergence and consolidation are not the end of the trend but a change in rhythm. At this stage, chasing gains and selling on dips are most likely to cause setbacks, and a rational response based on risk preference and holding cycle is crucial.

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