On October 8, the three major A-share indices opened mixed and then pulled back after an early rise, with the market showing a pattern of "index divergence, resource stocks strengthening, and technology growth stocks correcting." As of the midday close, the Shanghai Composite Index fell 0.27% to 3,831.84 points, the Shenzhen Component Index dropped 1.24% to 12,727.71 points, and the ChiNext Index declined 2.13% to 3,068.62 points; the STAR 50 fell 3.66%. More than 2,000 stocks in the broader market advanced while over 3,300 declined. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets reached 1,114.1 billion yuan, an increase of 196.9 billion yuan from the previous trading day.

On the capital flow side, main funds in the morning session recorded net inflows into sectors including electrical equipment and new energy, basic chemicals, and defense and military industries, while net outflows were seen in electronics, semiconductors, and telecommunications, with the electronics sector seeing net outflows exceeding 7.1 billion yuan.

Market Overview

In terms of sector performance, shipping ports, oil and gas extraction and services, and gas led the gains, while coal mining and processing and battery sectors also rose; on the downside, semiconductors, CPO (optical modules), and biological products led the declines. Overall, on the first trading day after the holiday, capital flowed out of high-level technology growth sectors such as electronics and semiconductors and shifted toward resource sectors including shipping, oil and gas, and coal, as well as dividend assets like banks. Bank of China Limited (ASX: 601988) and Industrial And Commercial Bank Of China Limited (ASX: 601398) hit record highs during intraday trading, while more stocks fell than rose overall.

Hot Sectors

1. Solid-State Battery Concept Active Against the Trend

The solid-state battery concept was active against the market trend, with Shidai Wanheng hitting its fourth consecutive limit-up, Zizhu Gaoke and Chuanyi Technology reaching their third consecutive limit-up, Lingpai Technology, Fengyuan shares, Xiongtao shares, and Yema Battery hitting the daily limit-up, Jinhe Yin touching the limit-up during intraday trading and closing the morning session up over 16%, and Liwang shares touching the 30CM limit-up during the session.

Commentary: On the news front, the Ministry of Industry and Information Technology and six other departments jointly issued the "15th Five-Year Plan for the Development of the New Battery Industry" on September 28, proposing that by 2030, all-solid-state batteries will initially achieve large-scale application, long-life lithium batteries will reach a cycle life of 15,000 cycles, and standards development for key areas of new batteries such as all-solid-state batteries and sodium batteries will be advanced.

2. Shipping Port Sector Strengthens

The shipping port sector strengthened, with China Merchants Energy Shipping Co.,Ltd. (ASX: 601872) hitting the limit-up just one minute after the open, Nanjing Tanker Corporation (ASX: 601975) hitting the limit-up, and Haitong Development, COSCO Shipping Specialized Carriers, and Guohang Ocean Shipping rising in tandem.

Commentary: On the news front, according to CCTV News, on October 7 local time, Iran stated it would block the "illegal" shipping lanes in the Strait of Hormuz and said the strait would remain closed until relevant demands are met; on the same day, an oil tanker was hit by multiple projectiles near Qatar. Continued turbulence in the Middle East is disrupting expectations for crude oil maritime supply. Data from the Baltic Exchange shows that the cost of chartering a Very Large Crude Carrier (VLCC) to transport U.S. crude oil to Asia has risen to 77 million yuan, compared with an average level of 9.2 million yuan in 2025. In addition, China Merchants Energy Shipping Co.,Ltd. (ASX: 601872) announced on the evening of September 30 that its wholly-owned subsidiary signed a 25-year long-term transportation agreement with a customer for six Very Large Ore Carriers (VLOC), with the total contract value expected to be no less than 2.8 billion U.S. dollars.

3. Oil and Gas Sector Rises Collectively

The oil and gas sector rose collectively, with Guo Xin Energy hitting the limit-up, Shouhua Gas rising nearly 8%, Tongyuan Petroleum up over 6%, Lanyan Holding up 6%, and Shuifa Gas and Tianhao Energy rising in tandem.

Commentary: On the news front, international crude oil prices generally rose during the National Day holiday, with Brent crude oil futures trading around 102 U.S. dollars per barrel on October 8; the International Energy Agency stated on October 7 local time that its member governments agreed to accelerate the implementation of the oil reserve release plan announced in March this year, and if all previously committed but not yet released reserves are put on the market, an additional approximately 100 million barrels of oil are expected to be released.

4. Real Estate Sector Stocks Active

The real estate sector opened lower in the morning and then moved higher, with individual stocks performing actively. Lujiazui hit the limit-up, Shenwuye A touched the limit-up during intraday trading and closed the morning session up nearly 8%, World Union fell back after touching the limit-up during the session, and Damingcheng and 5i5j rose in tandem.

Commentary: On the news front, on September 29, the Ministry of Finance, together with the People's Bank of China and the National Financial Regulatory Administration, issued the "Notice on Implementing the Interest Subsidy Policy for Residential Housing Loans," implementing interest subsidies starting October 1 for residents using newly issued commercial personal housing loans to purchase their first homes, with the policy implementation period tentatively set at one year. According to a holiday survey by China Securities Journal, influenced by policies such as the housing loan interest subsidy, attention to the property market in Beijing, Shenzhen, Guangzhou, and other cities has increased, with more people visiting sales offices to view homes.