Home / Metal News / The ChiNext Index fell over 1% amid fluctuations, while the marine economy concept bucked the trend and strengthened. Steel stocks surged in the afternoon. [Stock Market Review]

The ChiNext Index fell over 1% amid fluctuations, while the marine economy concept bucked the trend and strengthened. Steel stocks surged in the afternoon. [Stock Market Review]

iconJul 2, 2025 18:21
Source:SMM

The market experienced a volatile adjustment throughout the day, with the ChiNext Index leading the decline. The total trading volume on the Shanghai and Shenzhen stock exchanges reached 1.38 trillion yuan, a decrease of 89.1 billion yuan from the previous trading day. On the futures market, market hot topics were rather scattered, with more stocks declining than rising. Over 3,200 stocks across the market fell. From a sector perspective, PV concept stocks collectively rebounded, with nearly 10 stocks, including Tongwei Co., Ltd., hitting the daily limit. Ocean economy concept stocks surged against the trend, with over 10 stocks, including Juli Sling Co., Ltd., hitting the daily limit. Cyclical stocks such as steel performed actively, with Liugang Iron & Steel Co., Ltd., among others, hitting the daily limit. On the downside, military stocks adjusted, with Beifang Changlong falling over 10%. By the close, the Shanghai Composite Index fell 0.09%, the Shenzhen Component Index fell 0.61%, and the ChiNext Index fell 1.13%.

In terms of sectors

, ocean economy concept stocks remained strong throughout the day, with stocks such as Shenzhen Shuiwana Group Co., Ltd., Shenkai Corporation, Zhenhua Heavy Industries Co., Ltd., Juli Sling Co., Ltd., and Hainan Boyang Fisheries Co., Ltd., hitting the daily limit. On the news front, the sixth meeting of the Central Financial and Economic Affairs Commission emphasized that promoting Chinese-style modernization requires advancing the high-quality development of the marine economy and forging a path toward maritime strength with Chinese characteristics.

TF Securities previously pointed out in a research report that by focusing on the entire chain of deep-sea technology, opportunities in the four core areas of exploration, mining, transportation, and communication should be grasped. On the exploration side, focus should be placed on satellite remote sensing and sonar technology monopolies that are core to the underwater robot sector and auxiliary technologies, with a focus on their continuous expansion in scientific research, civilian, and military applications. On the mining side, attention should be given to enterprises involved in seabed excavation systems and equipment. On the transportation side, focus should be on the shipbuilding industry and pipeline transportation. On the communication side, focus should be on communication network construction areas such as fiber optics and cables. However, it should be noted that amid the market's rapid rotation, the sustainability of each hot topic remains relatively average. After the ocean economy concept stocks surged with increased trading volume today, it is expected that the differentiation among individual stocks will increase. At that time, funds may adopt a focused approach, paying particular attention to the core front-runners.

The PV sector rebounded, with stocks such as Cybrid Technologies, Inner Mongolia Oujing Technology Co., Ltd., Yamaton Holdings Co., Ltd., Tongwei Co., Ltd., and First Solar hitting the daily limit. On the news front, according to SMM, in order to break free from "cut-throat competition," domestic leading PV glass enterprises plan to collectively cut production by 30% starting from July. It is expected that domestic glass production will decline to around 45GW in July.

China Securities pointed out that from a policy perspective, the PV industry, as one of the key industries targeted for addressing cut-throat competition in China, has a relatively clear future policy direction on the supply side. If the actual implementation of the policy is stronger than expected and proceeds smoothly, it is expected to reverse the current losses across the entire PV industry chain.

Steel stocks surged in the afternoon, with Chongqing Iron & Steel Co., Ltd., Liugang Iron & Steel Co., Ltd., and Shougang Group hitting the daily limit. Sansteel Minguang Co., Ltd., Wujin Stainless Steel Pipe Group Co., Ltd., and Xinyu Iron & Steel Co., Ltd. were among the top gainers. On the news front, domestic ferrous metals series futures in China saw a full-line rise today, with the most-traded ferrosilicon futures contract gaining nearly 2%.

Huachuang Securities pointed out that since the beginning of this year, due to the continuous pullback in raw material and fuel prices, the cost side of steel mills has seen a significant decline, and the profitability of steel mills has improved to some extent. However, currently, demand support is relatively weak, and the improvement in profits mainly comes from cost-side concessions. In the future, if the regulation of crude steel production is substantially implemented, industry supply is expected to start pulling back, which, on the one hand, will further suppress raw material and fuel prices, and on the other hand, improve the supply-demand relationship to support steel prices, thereby potentially bringing greater elasticity to steel profits.

Today's rise in both the PV and steel sectors was influenced by rumors of production cuts (the market expects the industry to accelerate inventory clearance), which is part of the expected hype for a turnaround in the industry's difficulties. However, it should be noted that the continuity of similar oversold rebounds is often relatively average, and whether there will be more positive news to strengthen the trend remains a key point of concern.

Individual Stocks

Looking at individual stocks, the retreat of high-flying stocks continues. There is an accelerated outflow of funds from the stablecoin sector, with Annie shares, Chutianlong shares, and GCL New Energy all hitting the daily limit down yesterday, while popular stocks such as Cuiwei shares, Xiongdi Technology, and Lakala fell more than 6% again. Currently, this sector appears to be the weakest among the previously popular themes. The military sector also continues to adjust, with Inner Mongolia First Machinery Group hitting the daily limit down, and Northern Changlong falling more than 10%, while Construction Industry and Great Wall Military Industry fell more than 7%. However, the good news is that so far, the upward structure of most stocks in this sector has not been disrupted. Although the overall performance of solid-state batteries remains divided, some local areas have seen a rebound. Among them, Cybrid Technologies, which overlaps with the PV sector, hit the daily limit up, while Baoming Technology, Dongwei Technology, and Defu Technology were also active during the trading session. If the aforementioned stocks can continue to show positive feedback tomorrow, it is expected to drive an overall rebound in the solid-state battery sector.

Market Outlook

Today's market continued to adjust, with all three major indices closing lower, with the ChiNext Index being the weakest, falling more than 1%. Trading volume further contracted, falling below 1.4 trillion yuan. However, so far, the market has not seen significant destructive selling, and when the index hit lows during the trading session, it also showed strong buying momentum, suggesting potential for a rebound after short-term volatility and adjustment. From a futures market perspective, the rotation between high and low-priced hot topics continues. The computing hardware sector, which was active in the previous few days, led the losses today, while previous hot topics such as the military sector and stablecoins also continued to be divided and consolidated, with limited overall rebound strength. The sectors that led the gains today, such as the marine economy, PV, and steel, can essentially be seen as oversold rebounds catalyzed by news, unable to stir up short-term sentiment. Therefore, if the market wants to regain strength in the future, it still needs to identify a direction within the popular sectors from the early stage that can resonate with sentiment and move upwards.

Market News Highlights

1. China's independently created global scientific and technological literature data platform goes live, offering free access to users

At the 2025 Global Digital Economy Conference held in Beijing on July 2, a global scientific and technological literature data platform with complete independent intellectual property rights, independently created by Chinese institutions, went live. The Dongbi Global Scientific and Technological Literature Data Platform has collected nearly 90 million pieces of high-quality scientific and technological literature metadata from around the world. It is a scientific and technological literature data platform that is independently collected, processed, and constructed based on an evaluation indicator system independently proposed by Chinese institutions. With complete independent intellectual property rights, it is secure and controllable, and will to a certain extent break the Western monopoly in this field. The data platform also introduces two AI functions: "Scholar Achievement Interpretation" and "Review Automatic Generation," which are equivalent to equipping each user with an "AI assistant." Users can ask the AI assistant in plain language about each scholar's research direction, research characteristics, outstanding contributions, and even comparisons between different scholars. After going live, the basic functions of the data platform will be freely accessible to global users, providing efficient literature retrieval, citation analysis, and data tracking services.

2. Reports say Apple's foldable iPhone has entered the P1 prototype stage, while foldable iPad R&D has been shelved

Apple's foldable iPhone has entered the P1 (Prototype 1) prototype development stage in June, with subsequent P2 and P3 stages to follow. Each prototype stage typically lasts about two months. It is expected that the Prototype development process will be completed by the end of 2025, with a potential market launch in H2 2026. In addition, the R&D of the foldable iPad has been shelved due to factors such as more difficult production of components like panels, as well as a high selling price and low market acceptance.

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