A-Share Market Falls: ChiNext and STAR Indices Drop Over 3%, Precious Metals and Coal Rise

The A-share market closed lower on Wednesday, with the ChiNext and STAR boards both tumbling more than 3%. The decline was broad-based, as over 3,900 stocks fell across the Shanghai, Shenzhen and Beijing exchanges, while turnover reached 2.02 trillion yuan. The Shanghai Composite slipped 0.59%, the Shenzhen Component dropped 2.13%, and the ChiNext Index slid 3.21%. Markets opened higher but reversed quickly, with selling pressure intensifying towards the close.

Sector performance was extremely divided. Precious metals, coal, insurance, and banking stocks gained, driven by their defensive appeal. In contrast, computing power hardware, biomedicine, semiconductors, and robotics shares suffered heavy losses. This shift reflects investors' rotation from growth to value, as risk appetite weakened amid global uncertainties.

In hot concepts, precious metals strengthened, with Shenzhen Zhongjin Lingnan advancing for a third consecutive day and Hunan Silver hitting its daily limit. Coal stocks also rallied, with Dayou Energy, Shanghai Energy, and Meijin Energy all reaching limit-up. These sectors are seen as safe havens and beneficiaries of policy support.

On the downside, biomedicine tumbled, with Shuanglu Pharmaceutical and Lizhu Group falling to limit-down. CPO and other computing power hardware stocks also weakened, dragging Gongjin Electronics to limit-down. The pullback in these previously favored sectors suggests profit-taking and a cautious market sentiment.

The market's divergence underscores the ongoing transition in investment style, with defensive sectors and cyclical stocks gaining traction.