A-share Opening Brief | Shanghai Composite Index opens down 0.42%, while oil, gas, and coal sectors strengthen against the trend; metals and electronics lead the decline.

On September 2, the Shanghai Composite Index opened down 0.42% at 3963.07 points, the Shenzhen Component Index opened down 1.01% at 13732.18 points, the ChiNext Index opened down 1.35% at 3347.68 points, and the STAR Market 50 opened down 1.46% at 1623.53 points. As of 9:31 AM, there were 744 stocks rising in the two markets and the Beijing Stock Exchange, 4668 stocks falling, and 142 stocks flat. Top gainers included: ground weaponry, coke, oil service engineering, natural gas, and coal mining; top losers included: non-ferrous metals, telecommunications, electronics, electrical equipment, and machinery. Market Overview On the previous trading day (September 1), all three major A-share indices closed lower, with the Shanghai Composite Index down 0.16% and the ChiNext Index down 1.32%. The market opened today continuing the adjustment, with all four major indices opening lower, the Shanghai Composite down 0.42%, and both the Shenzhen Component Index and ChiNext Index down over 1%. Most individual stocks experienced declines, with only about 13% of stocks rising, 12 hitting the daily limit up, and 1 hitting the daily limit down. In the market, the overnight escalation of the U.S.-Iran conflict pushed up international oil prices, with defensive and cyclical sectors like oil and gas, coal, and banking performing well against the trend; overnight, the Philadelphia Semiconductor Index fell 2.14%, leading declines in sectors like non-ferrous metals, telecommunications, electronics, and electrical equipment. Overnight News Briefs U.S. Stocks Drop for Three Consecutive Days Oil Prices Surge: The escalation of the U.S.-Iran conflict has led the U.S. military to launch new strikes against Iranian Revolutionary Guard targets, with tankers in the Strait of Hormuz attacked. On September 1, WTI crude oil futures rose by 5.20% to $90.22 per barrel, and Brent rose by 4.60% to $94.65 per barrel. All three major U.S. indices closed lower, with the Dow Jones down 0.79% at 52766.88 points and the Nasdaq down 1.03%. Central Bank's Net Liquidity Withdrawal Battery Consumption Tax Enacted: The central bank announced that on September 2, the volume of 7-day reverse repos was zero, with 598.5 billion yuan in reverse repos maturing on the same day, resulting in a net withdrawal of 598.5 billion yuan. Starting from September 1, the Ministry of Finance and two other departments will impose a 2% consumption tax on lithium-ion batteries, while sodium batteries, solid-state batteries, and perovskite batteries will be exempt from tax, alongside a batch of new regulations taking effect simultaneously. Hua Hong Grace Semiconductor Expands Production Leading Companies Repurchase Shares: Hua Hong Grace Semiconductor and its subsidiaries plan to invest over 2.1 billion U.S. dollars to increase capital for the third phase of Wuxi Hua Hong Grace Semiconductor, aiming to build a 12-inch specialty process wafer foundry line with a monthly capacity of about 55,000 wafers. Zhongji Innolight conducted its first share buyback of 318 million yuan, GigaDevice Semiconductor Inc. has repurchased a total of 654 million yuan, and BYD Company Limited sold 440,300 units of new energy vehicles in August. Market Trend Analysis Today, all four major A-share indices opened lower, with most stocks declining, and only about 13% of stocks rising. The overnight escalation of the U.S.-Iran conflict raised oil prices amid three consecutive days of declines in U.S. stocks, combined with CME interest rate futures indicating a market-implied probability of about 68% for a Fed rate hike in September, suppressing risk appetite. Non-ferrous metals, electronics, and other sectors led the declines, while oil and gas, coal, and banking sectors performed well against the trend. Institutional consensus leans towards stabilization and consolidation with structural opportunities: Some viewpoints suggest that A-shares are likely to continue moving upward but caution about short-term volatility risks; other views indicate that the heat around new consumer electronics products is expected to rise, with price increases in MLCCs and PCBs providing catalyst at the terminal side. Overall, under the influence of overseas interest rates and geopolitical disturbances, the market may predominantly experience fluctuations in the short term, with the energy sector and dividend direction relatively outperforming.