China’s A-Share Market Navigates Consolidation: Spotlight on Shipping, Ports, Photovoltaics & Key Economic Signals

Navigating the latest in China’s A-share market can be a wild ride, and May 13, 2025, was a day of consolidation and key shifts for investors and tech enthusiasts to watch.

Here’s the lowdown: China’s A-share major three indexes mostly took a breather.

By the market close:

• The Shanghai Composite Index (Hu Zhi 沪指) nudged up 0.17%, closing at 3374.87 points.
• The Shenzhen Component Index (Shenzhen Chengzhi 深证成指) dipped slightly by 0.13%, to finish at 10288.08 points.
• The ChiNext Price Index (Chuangye Banzhi 创业板指) saw a minor decline of 0.12%, ending the day at 2062.26 points.

Trading volume was still hefty across the Shanghai and Shenzhen markets, hitting a combined ¥1.2916 trillion RMB (that’s roughly $181.92 billion USD).

This was a slight dip of ¥16.9 billion RMB (around $2.38 billion USD) from the previous trading day, but still shows significant market activity.

Market Pulse: Sector Winners and Losers in Chinese Stocks

So, where was the action? It was a mixed bag, with more sectors seeing declines than advances.

Top Performing Sectors: Who’s Riding High?

The gainers list featured some interesting players:

• Shipping & Ports: These guys were making waves.
• Photovoltaic Equipment: Green energy continues to shine.
• Banking: A solid performer amidst the consolidation.
• Beauty & Personal Care: Looking good in the market.

Sectors Facing Headwinds

On the flip side, some sectors felt the pinch:

• Aerospace & Aviation
• Shipbuilding
• Minor Metals
• Computer Equipment
• Transportation Equipment
• Communication Equipment

Stock Standouts: Movers and Shakers

Drilling down to individual stocks, it was a dynamic scene.

Over 1,900 stocks saw their prices climb.

A notable 70 stocks hit their daily trading limit (漲停) – always a sign of strong momentum.

Port and shipping stocks went on a collective surge, with names like Nanjing Port (Nanjing Gang 南京港) hitting their upper limit.

Chemical stocks also flexed their muscles, with companies such as Guangdong Hongqiang Holdings (Hongqiang Gufen 红墙股份) also reaching their trading limit.

Even banking stocks were active against the broader trend. Shanghai Pudong Development Bank (Pufa Yinhang 浦发银行), for instance, reached new historical highs – a significant milestone!

On the downside, defense and military-related stocks saw a collective pullback.

AVIC Chengdu Aircraft Industrial Group (Zhonghang Chengfei 中航成飞) and others in the sector fell by more than 5%.

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Capital Flows: Where’s the Smart Money Moving in China’s Market?

Let’s follow the money.

When we look at industry capital flows as of the close, a few sectors stood out for net inflows:

• 🥇 Photovoltaic Equipment: This sector was a clear favorite, attracting a net inflow of ¥1.629 billion RMB (approximately $229.44 million USD). This signals strong investor confidence in green tech.
• 🥈 Shipping & Ports: Also saw significant positive flows.
• 🥉 Banking: Continued to attract capital.

And where did the capital exit?

The sectors experiencing the largest net outflows included:

• 🔻 Aerospace & Aviation: This sector saw the biggest net outflow, a hefty ¥3.86 billion RMB (approximately $543.66 million USD).
• 🔻 Auto Parts
• 🔻 General Equipment

Today’s Headlines: Policy Shifts, Trade Talks, and Market Tremors

Beyond the daily tickers, several major news items are influencing market sentiment and specific industries.

Trump’s “Most Favored Nation” Bomb: Drug Pricing Shake-up Looms

Over in the U.S., big news on the pharmaceutical front.

President Trump, at a White House press conference on May 12, laid down the law on a new “Most Favored Nation” (MFN) pricing policy for drugs.

The executive order, inked on May 12 (US time) and titled “Providing Most Favored Nation Prescription Drug Pricing for American Patients,” is a biggie.

It mandates that U.S. drug payment prices must be pegged to the lowest levels found in other developed countries.

And the deadline? A tight 30 days.

This could mean significant ripples for pharma companies globally, and potential legal showdowns are already being discussed.

US-China Trade Talks: “Substantial Progress” and A-Share Impact

The all-important US-China trade relationship saw some positive movement.

High-level talks held from May 10-11 yielded “a series of important consensuses and substantial progress through joint efforts.”

What does this mean for businesses on the ground?

A-share listed companies across diverse sectors – think toys, textiles, home appliances, pharmaceuticals, shipping, and auto parts – are weighing in.

Interestingly, some enterprises are reporting no decrease in orders since April, suggesting resilience or perhaps cautious optimism.

China’s Foreign Ministry on US Fentanyl Tariff Talk

The topic of fentanyl remains a contentious point in US-China relations.

Foreign Ministry Spokesperson Lin Jian addressed queries on the US discussing fentanyl-related tariffs.

Lin reiterated China’s position: “fentanyl is an American problem, not a Chinese one, and the responsibility lies with the U.S. itself.”

He stated that the U.S. imposing fentanyl-related tariffs on China, despite China’s goodwill, has “severely impacting dialogue and cooperation in counter-narcotics between the two countries and seriously harming Chinese interests.”

The message was clear: “If the U.S. genuinely wants to cooperate with China, it should stop smearing and blaming China, and engage in dialogue with China on an equal, respectful, and mutually beneficial basis.”

Gold Price Drop: Is the Rally Over? Jewelry Prices Tumble

Gold bugs, take note!

On May 12, gold prices took a significant dive.

Both London spot gold and COMEX gold futures experienced intraday drops of over 3%.

This had an immediate knock-on effect on domestic gold jewelry prices in China.

Here’s a snapshot of the price cuts per gram for pure gold jewelry:

• Chow Sang Sang (Zhoushengsheng 周生生): Priced at ¥1007 RMB/gram (approx. $141.83 USD/gram), down ¥14 RMB/gram (approx. $1.97 USD/gram) from ¥1021 RMB/gram.
• Chow Tai Fook (Zhoudafu 周大福): Priced at ¥1008 RMB/gram (approx. $141.97 USD/gram), also a ¥14 RMB/gram decrease from ¥1022 RMB/gram.
• Zhouliufu, Lukfook Jewellery, and King Fook Gold & Jewellery: All quoted pure gold jewelry at ¥1008 RMB/gram.
• Lao Feng Xiang (Laofengxiang 老凤祥): Dropped to ¥1002 RMB/gram.
• Laomiao Jewelry: Hit ¥1000 RMB/gram.

The big question on everyone’s mind: Is this a temporary blip or the end of the recent gold rally?

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Institutional Corner: Expert Takes on China’s Economic Landscape

What are the big players saying? Here’s a peek into the research notes from top institutions.

CICC (Zhongjin Gongsi 中国国际金融股份有限公司): Easing Economic Headwinds for US and China

CICC (Zhongjin Gongsi 中国国际金融股份有限公司) sees the “substantial progress” in US-China talks as a major positive.

They noted the announcement of easing tariffs on each other’s goods was better than expected, significantly boosting market risk appetite.

Their take:

• Tariffs’ Impact: Short-term, tariffs act as a supply shock for the US and a demand shock for China.
• Talks’ Outcome: The results mean an alleviation of that supply shock for the US and a weakening of the demand shock for China.
• US Tariff Rate: CICC estimates the latest effective US tariff rate will drop from 28.4% to 15.5%, which should reduce stagflation risks in the US.
• China’s Exports: The downside risk for Chinese exports is now “greatly mitigated.”
• China’s Domestic Economy: Future trajectory will hinge on macroeconomic policies, especially fiscal policy.

CITIC Securities (Zhongxin Zhengquan 中信证券): A+H Dual Listing Wave & A-Share Revaluation Opportunities

CITIC Securities (Zhongxin Zhengquan 中信证券) is spotlighting the trend of A-share companies pursuing A+H dual listings (listing on both mainland China’s A-share market and the Hong Kong H-share market).

This trend, starting in Q4 2024, is gaining steam.

Key insights:

• Hong Kong Listing Surge: April 2025 alone saw more companies (by number and total market value) disclosing Hong Kong listing plans than in all of Q1 2025. The wave of Hong Kong IPOs for A-share firms is expected in H2 2025.
• Stock Performance: Pre-IPO, stock prices might be moderate. Post-Hong Kong IPO, as positive news flows, prices and expectations could rise together.
• Fundamentals: Significant H-share discounts boost the relative dividend yield of quality companies. Narrowing discounts also offer return potential.
• Scarcity Value: Leading companies in this A+H wave have strong scarcity value in Hong Kong and overseas.
• Capital Flow Dynamics: Hong Kong’s liquidity and valuations have improved since September last year. Limited free float of A-shares listing in Hong Kong, plus Stock Connect inclusion expectations, means high-quality A-share assets will likely attract strong buying interest.
• Bottom Line: Focus on the “phase-specific opportunities for A-share asset revaluation in Hong Kong” from this A+H dual listing trend.

Huatai Securities (Huatai Zhengquan 华泰证券): Bet on Leading Brokers with Strong Balance Sheets

Huatai Securities (Huatai Zhengquan 华泰证券) is bullish on brokerage firms, especially after a strong Q1 2025.

Large brokerage firms saw aggregate net profit attributable to parent companies surge by 92% year-on-year in Q1 2025. Even adjusted net profit was up 51% year-on-year.

Huatai highlights three main lines to watch:

1. Balance Sheet Expansion Continues: Financial investment scale is driving asset growth, though leverage ratios are diverging.
2. Investment Income Shines: Investment-related income for large brokers generally increased, showing strong elasticity. This is a key growth driver.
3. Light-Capital Businesses Recover:
   • Average daily stock and fund trading volume up 71% YoY in Q1, boosting brokerage net income.
   • Investment banking net income generally improved.
   • Asset management net income remained relatively stable.

Looking ahead, they expect supportive capital market policies to continue.

Their advice: Focus on leading brokerage firms with strong balance sheet utilization capabilities and stable performance growth. Don’t miss structural opportunities related to M&A themes either.

Guoyuan Securities (Guoyuan Zhengquan 国元证券): HarmonyOS PCs Debut – A Boon for the Industry Chain

Tech alert! Huawei (Huawei 华为) made a significant move with the official unveiling of “HarmonyOS PCs” on May 8 at a communication meeting in Shenzhen.

Guoyuan Securities (Guoyuan Zhengquan 国元证券) sees this as a “very crucial step for domestic operating systems in the personal computer (PC) field.”

Here’s why it’s a big deal:

• Ecosystem Growth: Over 300 integrated ecosystem applications are already adapted for HarmonyOS PCs. The target? Over 2,000 apps by year-end.
• Device Compatibility:
  • Supports connections with over 1,000 external devices.
  • This includes 800+ standard peripherals (keyboards, mice, monitors across 20+ categories).
  • Also supports 250+ non-standard peripherals (printers, writing tablets, scanners).
• Market Potential: According to Canalys data, PC shipments in mainland China for 2024 totaled 39.7 million units. That’s a massive replacement market for HarmonyOS PCs.
• Investment Angle: The HarmonyOS concept (Hongmeng Gaonian 鸿蒙概念) sector has performed well recently. Continued innovation in HarmonyOS PCs is expected to benefit the entire Huawei HarmonyOS industry chain.

Guoyuan Securities recommends keeping an eye on listed companies deeply involved in the Huawei HarmonyOS ecosystem that also boast good operating performance.

This wrap-up of the A-share market and related tech and economic news provides key insights for anyone watching China’s dynamic landscape.

Disclaimer: Eastmoney (Dongfang Caifu 东方财富) publishes this content for the purpose of disseminating more information. It does not represent the station’s standpoint and does not constitute investment advice. Users operate at their own risk based on this information.

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References

• A股三大指数震荡整理 航运港口与光伏板块涨幅居前 – 东方财富Choice数据
• Market News & Analysis – Reuters
• Global Stocks Market Data & News – Bloomberg
• Huawei News – Huawei Official Website