Market Movements and Sector Highlights

In a dynamic session on May 29, 2025, the A-share market witnessed a modest uptick, with the ChiNext Index climbing over 1% and the Northbound 50 Index rising by more than 1%. Notably, the technology sector saw significant gains, with Three Friends Technology surging over 20% and New Anjie increasing by over 10%. The newly listed Nuguqi soared by over 200%, triggering a trading halt.

EDA and Semiconductor Design

The Electronic Design Automation (EDA) sector experienced a robust rally, with companies like Lenglong Electronics hitting a 20% increase. This surge was fueled by reports from the UK’s Financial Times, citing sources that the Trump administration plans to restrict certain U.S. companies from exporting software related to semiconductor design to China. This move, expected to be enforced by the Bureau of Industry and Security under the U.S. Department of Commerce, primarily affects major firms with advanced EDA technologies. Analysts suggest that China’s EDA industry is transitioning from a “follower” to an “innovator” amidst global semiconductor supply chain restructuring.

Innovation in Pharmaceuticals

The pharmaceutical sector, particularly companies focused on innovative drugs, saw strong performance. Shu Tai Shen’s stock jumped over 15%, reaching a three-year high, following positive interim results from a Phase Ib/II clinical trial of STSA-1002 injection for Acute Respiratory Distress Syndrome (ARDS). The trial showed a significant reduction in 28-day all-cause mortality rates compared to the control group, highlighting the potential of this treatment.

Dividends and Share Buybacks

In corporate actions, Jianyou Group announced a dividend distribution of 1.00 yuan per 10 shares, with the record date set for June 4, 2025. Additionally, Jianyou Group disclosed plans to repurchase up to 213,333 shares at a maximum price of 18.75 yuan per share, with a total budget of 4 billion yuan.

Market Outlook

The recent market activities underscore a growing emphasis on technological innovation and pharmaceutical advancements. As geopolitical tensions influence the tech sector, China’s strategic pivot towards self-reliance in critical technologies like EDA could reshape the global landscape. Meanwhile, the pharmaceutical sector’s focus on innovative treatments continues to drive investor interest, promising new avenues for growth and development.