Market Overview: A Stock Exchange Cooling Trend
On May 26, 2025, the trading activity on the A-share market, encompassing the Shanghai, Shenzhen, and Hong Kong exchanges, showed a significant decline. The total trading volume reached 10,339 billion CNH, marking a decrease of nearly 1,500 billion CNH from the previous day. This volume is the lowest in nearly a month since April 18, placing it as the fifth lowest trading volume of the year.
Sector Performance: Diverse Trends Across Industries
The trading volume analysis by industry revealed varied performance across sectors. Media and banking sectors experienced an increase in trading volume, with media seeing a rise of 30 billion CNH and banking by 3 billion CNH. Conversely, sectors such as machinery, defense, chemical, and automotive saw significant declines, each dropping by over 100 billion CNH. Other sectors like transportation, electronics, and utilities also experienced reduced trading activity.
Market Capitalization: Smaller Caps Underperform Larger Ones
From a market capitalization perspective, smaller-cap stocks showed a more pronounced decline in trading activity compared to larger-cap stocks. The National 2000 Index, China 2000 Index, and China 1000 Index all saw substantial decreases in trading volume. In contrast, the SSE 50 and CSI 300 indices experienced an increase in trading volume, while micro-cap indices showed a slight decline, albeit less severe than other smaller-cap indices. The Northern 50 Index also noted a significant drop in trading volume.
Individual Stocks: Varied Trading Volumes
On an individual stock level, 17 stocks recorded a trading volume increase of over 10 billion CNH compared to the weekly average, with notable activity in companies like BYD, Shanghai Electric, and Shenzhen Hisense. However, 10 stocks saw a decrease in trading volume by over 10 billion CNH, with significant drops in companies such as AVIC Aircraft, Redpine Signals, and Largan Precision.
ETF Market: Cooling Trend Continues
The ETF market also reflected a cooling trend, with the combined trading volume of stock and cross-border ETFs falling below 1,000 billion CNH for the first time since April 29. The stock ETFs traded at 549.23 billion CNH, significantly lower than the monthly average of 653.38 billion CNH, while cross-border ETFs hit a monthly low at 434.59 billion CNH. Both categories recorded their fifth lowest trading volumes of the year.
Notable Stock Movements: Record Trading Volumes
Despite the overall market cooling, certain stocks recorded record trading volumes. Nine stocks achieved new highs in trading volume, including Riqi Manufacturing and Changfu Group. Additionally, 59 stocks reached new annual highs, with notable mentions like Haisen Pharmaceutical.
Company-Specific News: Shaanxi Fenghuo Electronics Co., Ltd.
Shaanxi Fenghuo Electronics Co., Ltd., listed on the Shenzhen Stock Exchange, experienced a close price of 9.57 CNH on May 22, 2025. The company, specializing in electronic products and wireless communication equipment, has a market capitalization of 6.53 billion CNH. Despite a negative price-to-earnings ratio of -42.19, the company remains a key player in the communications equipment industry.
Recent Developments:
On May 25, 2025, Shaanxi Fenghuo Electronics Co., Ltd. was part of a broader market trend where several companies issued notices regarding abnormal stock price fluctuations. Notably, companies like Binhai Energy and Fuhuo Electronics reported significant price deviations, with Fuhuo Electronics experiencing a 20% cumulative price increase over two trading days.