A-share Market Close Review | Shanghai Composite Index Falls 0.41%, All Three Major Indices Close Lower, Agriculture Sector Surges Against the Trend

On September 17, the three major A-share indices rose then fell back, closing lower across the board, with BSE 50 leading the decline. As of the close, the Shanghai Composite Index fell 0.41% to 3,875.60 points, the Shenzhen Component Index fell 0.33% to 13,409.91 points, the ChiNext Index fell 0.40% to 3,298.31 points, the STAR 50 fell 0.61% to 1,606.29 points, and BSE 50 fell 1.37% to 1,026.00 points. Total turnover across the Shanghai and Shenzhen markets for the full day was about 1.82 trillion yuan, a shrinkage of about 16 billion yuan from the previous trading day. Across the entire market, 2,576 stocks rose, 2,820 fell, and 169 were flat, with 50 hitting the daily limit up and 2 hitting the daily limit down, and advancers accounting for about 46%. On the board, agriculture-related sectors such as crop cultivation, genetically modified organisms, and corn led the gains, while pharmaceuticals and automobiles were also active; the precious metals sector led the declines in both markets, while oil and gas, power, and other sectors also weakened. Drivers The three major indices closed lower across the board: the Shanghai Composite Index fell 0.41%, the Shenzhen Component Index fell 0.33%, the ChiNext Index fell 0.40%, the STAR 50 fell 0.61%, and BSE 50 fell 1.37%, leading the decline. Turnover across the Shanghai and Shenzhen markets was about 1.82 trillion yuan, a shrinkage of about 16 billion yuan from the previous trading day, and volume failed to expand effectively. Across the entire market, 2,576 stocks rose and 2,820 fell, with advancers accounting for about 46%. The money-making effect was less than 50%, and divergence among sectors was obvious. The agricultural planting direction led the gains, with the crop cultivation index rising 3.83%, ranking first on the Shenwan second-level industry gainers list. The "National Crop Cultivation Development '15th Five-Year Plan" issued by the Ministry of Agriculture and Rural Affairs on September 7 proposed that by 2030 the comprehensive grain production capacity should reach about 1.45 trillion jin; the plan was issued more than a week ago and is background policy rather than a same-day catalyst. The precious metals sector plunged 5.37%, leading declines in both markets, with Shandong Gold Mining falling more than 6%. Among hot sectors 1. [Agricultural planting chain] Crop cultivation, genetically modified organisms, corn, and grain concepts strengthened collectively, ranking among the top gainers. Gansu Dunhuang Seed Group and Jinjian Cereals Industry hit the daily limit up, while WanXiang Doneed hit the daily limit up for a second consecutive board. In terms of policy background, the "National Crop Cultivation Development '15th Five-Year Plan" issued by the Ministry of Agriculture and Rural Affairs on September 7 proposed that by 2030 the comprehensive grain production capacity should reach about 1.45 trillion jin, safeguarding the bottom line of basic self-sufficiency in grains and absolute security of staple food. 2. [Pharmaceuticals] The CRO concept pulled up, and the pharmaceutical sector was active throughout the day. Sichuan Goldstone hit the 20CM daily limit up, while Xinjiang Bai Hua Cun Pharma Tech and Landfar Bio-medicine hit the daily limit up. On the news front, innovative drug overseas licensing transactions were active: the National Medical Products Administration disclosed on September 15 that since the beginning of this year, the total value of China's innovative drug outbound licensing transactions has exceeded 120 billion U.S. dollars, up 36% year on year, with upfront payments exceeding 10 billion U.S. dollars. 3. [Automobiles] The automobile sector moved sharply higher. Zotye Automobile, Jinbei Automotive, Anhui Ankai Automobile, and Sensteed Hi-tech Group hit the daily limit up. Sectors in correction The precious metals sector plunged 5.37%, leading declines in both markets, with Shandong Gold Mining down 6.46%, Hunan Gold Corporation down 6.15%, Hunan Silver down 5.82%, and Shanjin International Gold down 5.66%; oil and gas and power sectors weakened in tandem (Shenwan second-level oilfield services engineering fell 2.25%, power fell 1.22%), with Tong Petrotech Corp. down 5.92% and Zhongmin Energy down 5.57%.