In the A-share market, the majority of stocks rose, with nearly 3,800 stocks advancing across the Shanghai, Shenzhen, and Beijing exchanges. Sectors such as nuclear power and IP economy led the gains, while innovative drugs and automotive sectors lagged. Nuclear power stocks surged collectively, with nearly 20 stocks, including China Nuclear Technology, hitting the daily limit-up. Healthcare stocks adjusted downward, with Haisco Pharmaceutical and others dropping over 5%. Auto stocks broadly declined, with BYD falling nearly 6% and trading volume exceeding RMB 10 billion. Seres, Zotye Auto, and Haima Auto also followed the downtrend.
On Monday, May 26, the three major A-share indices fluctuated throughout the day, with the ChiNext Index leading the decline, briefly dropping over 1%. The nuclear power sector surged, while healthcare and auto sectors underperformed. In Hong Kong, the Hang Seng Index and Hang Seng Tech Index extended losses in the afternoon, with the latter briefly falling over 2%. Auto stocks across the board retreated. In the bond market, treasury futures closed higher. A-shares: At the close, the Shanghai Composite Index fell 0.05%, the Shenzhen Component Index dropped 0.41%, and the ChiNext Index declined 0.80%. Nuclear power, IP economy, PEEK materials, and power grid equipment sectors led the gains, while innovative drugs and auto sectors lagged. Specifically, nuclear power stocks surged, with nearly 20 stocks hitting the daily limit-up. IP economy concept stocks strengthened, with Jinghua Laser and nearly 10 others reaching the limit-up. Healthcare stocks adjusted, with Haisco Pharmaceutical and others dropping over 5%. Auto stocks broadly declined, with BYD falling nearly 6% and trading volume exceeding RMB 10 billion. Seres, Zotye Auto, and Haima Auto also followed the downtrend. Hong Kong stocks: At the close, the Hang Seng Index fell 1.35%, and the Hang Seng Tech Index dropped 1.35%. Auto stocks plunged, with BYD down about 9%, Geely Auto down about 9%, and Great Wall Motor down about 6%. Tech stocks declined, with Meituan falling about 5%. CNNC International surged about 130%, as it is the sole overseas uranium resource platform under CNNC. Bond market: Treasury futures closed higher, with the 30-year contract up 0.13%, the 10-year contract flat, the 5-year contract up 0.01%, and the 2-year contract up 0.03%. Forex market: The central parity rate of the yuan against the dollar rose 86 basis points to 7.1833. In early trading, both onshore and offshore yuan strengthened against the dollar, briefly breaking the 7.17 level. By 16:00, the onshore yuan was at 7.1810, having earlier risen to 7.1674, while the offshore yuan was at 7.1775, peaking at 7.1608. According to Baidu, Goldman Sachs noted that the yuan has shown remarkable resilience during the latest Sino-US trade tensions, appreciating 1% against the dollar since April 2, unlike the 13% depreciation seen from March 2018 to January 2020.The appreciation of the RMB may benefit the Chinese stock market through accounting, fundamental, risk premium, and portfolio flow channels. A 1% appreciation could drive stock prices up by 3%, with non-essential consumer goods, real estate, and brokerage stocks performing particularly well.
Commodities: At the close of domestic commodity futures trading, the main contract for European container shipping routes fell by over 5%, while polysilicon, alumina, industrial silicon, BR rubber, and manganese silicon dropped by more than 3%. Iron ore, rubber, hot-rolled coils, and lithium carbonate declined by over 2%. Fuel oil, glass, and crude oil rose by more than 1%. Among these, black commodities and new energy materials futures showed weak performance, with polysilicon futures down 3.92% and industrial silicon futures down 3.67%. Chemical products faced broad pressure, with synthetic rubber futures falling 3.11% and natural rubber futures dropping 2.24%. Among base metals, alumina futures accelerated their decline, losing 3.77%. Nuclear Power Sector Surge: During today’s trading session, the A-share nuclear power sector saw a collective surge, with nearly 20 related stocks, including Hahan Huatong, Baobian Electric, and Rongfa Nuclear, hitting the daily limit-up or rising over 10%. In the Hong Kong market, CNNC International surged by over 180% intraday before closing nearly 130% higher. The news follows U.S. President Trump’s signing of four executive orders last Friday aimed at accelerating the approval process for nuclear reactors for defense and AI purposes, reforming the Nuclear Regulatory Commission to quadruple nuclear power output over the next 25 years, adjusting regulatory procedures to bring three experimental reactors online by July 4, 2026, and increasing investment in the industrial base for this technology. According to earlier reports by Baidu, the executive orders also require the U.S. Department of Energy to facilitate the construction of 10 large reactors by 2030. Trump’s orders mandate the DOE to promote the construction of these reactors and provide financing support for power upgrades at existing reactors. Michael Kratsios, White House Director of Technology Policy, declared this would initiate a “U. S. nuclear power revival,” stating that “America’s great innovators and entrepreneurs have faced significant obstacles in nuclear technology.” Huafu Securities noted that nuclear power is one of the cleanest, safest, most efficient, and land-efficient energy forms, offering unparalleled advantages in addressing global climate change, promoting green energy transitions, and ensuring energy security. As nuclear energy gains attention worldwide, it is expected to play a larger role in desalination, hydrogen production, and medical protection beyond power generation. Since early May, A-share nuclear energy concept stocks have continued to rise, with the controlled nuclear fusion segment showing the strongest performance, its index surging over 5% intraday today.Since May, the cumulative increase of the controlled nuclear fusion index has exceeded 20%. On April 30, the International Thermonuclear Experimental Reactor (ITER) organization announced on its official website that it had completed the manufacturing of all components for the world’s largest and most powerful pulsed superconducting electromagnetic system. ITER hailed this achievement as a “milestone,” marking a critical step toward realizing controlled nuclear fusion energy.
Minmetals Securities stated that nuclear energy, as a strategic energy source in China, holds long-term growth value, and the continued advancement of key nuclear fusion projects and the demonstration of SMR (small modular reactor) power supply projects may accelerate industry development. CITIC Securities estimates that the total investment in domestic controlled nuclear fusion experimental reactors under construction could exceed 60 billion yuan, generating deterministic demand for upstream component orders. Auto stocks broadly declined, with the A-share auto sector leading the losses today. Companies such as BYD, Seres, Great Wall Motors, Changan Automobile, and BAIC BluePark all saw their shares fall. Hong Kong-listed auto stocks also plummeted, with BYD down approximately 9%, Geely Auto dropping over 9%, Leapmotor declining 8.45%, and XPeng falling 4.44% by the close. On the news front, Baidu recently mentioned that BYD has launched a limited-time “fixed-price” or subsidy promotion, covering 22 intelligent driving models from its Dynasty and Ocean series, with maximum subsidies reaching 53,000 yuan. Beyond BYD’s price cuts, Japanese car brands have also been frequently reducing prices, according to Securities Times China. For instance, the Leiling model in Shanghai currently offers discounts of up to 40,000 yuan, with the lowest starting price at just 73,800 yuan. Additionally, recent remarks by Great Wall Motors’ Wei Jianjun about threats to the automotive industry’s safety may have sparked concerns. CICC auto analysts noted that BYD’s increased promotions over the weekend, including fixed-price offers for some models priced as low as 60,000 yuan after subsidies, prompted brands like GAC Aion to follow suit, raising fears of a new price war. Traditional brands facing direct competitive pressure may consider matching these promotions. CICC believes that since April, the sector’s beta has been strong, particularly in Hong Kong, where auto stocks rebounded after tariff-related sell-offs, with BYD, Geely, and Leapmotor hitting new highs. However, the impact of fixed-price promotions and potential price wars could lead to sharp corrections. Morgan Stanley warned that intensifying price wars may further dampen investor sentiment as expectations shift toward fundamentals. Risk Warning and Disclaimer: The market carries risks, and investments require caution.This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their particular circumstances. Investments made accordingly are at the user’s own risk.
