Highlights

The A-shares and H-shares markets soared on June 9, highlighting a vibrant day for Chinese stocks. The Shanghai Composite Index momentarily broke above the 3400-point benchmark, with the biotech sector leading the rally. The Hang Seng Index reclaimed the 24,000-point level after more than two months, while China's rare earth stocks saw a dramatic surge.

Sentiment Analysis

• Investor sentiment in the A-shares and H-shares markets was overwhelmingly positive, buoyed by strong performances in tech and biotech sectors.
• The announcement of regulatory approvals for key financial institutions fueled optimism in the financial sector.
• However, sectors like household appliances and precious metals experienced downturns, tempering overall market enthusiasm.

Article Text

The trading day of June 9 saw robust upward movements in both A-shares and H-shares markets, characterized by significant gains in major indices. The Shanghai Composite Index, a key barometer of China's economic health, successfully surpassed the psychological threshold of 3400 points during intraday trade, with most significant increases observed in the biotech industry. Notable gainers included Haichen Pharmaceuticals and several other biotech firms that achieved or approached their daily trading caps.

Another vibrant sector was the financial services domain, which experienced sharp rises driven by approved changes in control applications for major firms like Cinda Securities and Dongxing Securities. The approval led by China Central Huijin Investment is a pivotal development, indicative of forthcoming strategic adjustments in this sector.

Conversely, commodity sectors like non-ferrous metals and household appliances underperformed, showing slight declines. Meanwhile, industry data released by China's National Bureau of Statistics indicated a 0.1% year-over-year decrease in consumer prices for May 2025, reflecting deflationary trends in consumer goods excluding services which marginally rose.

In Hong Kong's stock exchange, sentiments were similarly optimistic. The Hang Seng Index climbed back above the 24,000-point mark for the first time in two months, powered by technology stocks, especially within the Hang Seng Tech Index. Shares like Kingsoft and Tencent Music were standout performers. Conversely, gold mining stocks faced intense sell-offs, marking declines amid the bullish sentiment elsewhere.

A standout performance came from China's rare earth mining sector, with China Rare Earth rocketing over 50% on commentary surrounding export controls on dual-use items, as stated by the Ministry of Commerce. Such policy moves aim to safeguard national security, showcasing China's strategic approach in managing sensitive resources amidst growing global demand, particularly from burgeoning fields like robotics and electric vehicles.

Key Insights Table