Market Context

On 6 February 2026 the Shanghai Stock Exchange and Shenzhen exchanges opened lower but subsequently rallied, before retreating in the closing session. The three main indices – the Shanghai Composite, the Shenzhen Component and the ChiNext – finished the day down by 0.25 %, 0.33 % and 0.73 % respectively. Total trading volume across the Shanghai–Shenzhen market reached 2.16 trillion CNY, a slight decline of 309 billion CNY from the previous day.

A pronounced sector rotation was observed. The chemical and oil‑and‑gas groups gained momentum, while consumer‑goods stocks, particularly those in the liquor and retail subsectors, weakened. Among the chemical sub‑industries, fine chemicals, base chemicals and chemical fibre stocks led the gains, with several shares hitting the daily limit.

JINNIU CHEMICAL’s Position

JINNIU CHEMICAL (Hebei Jinniu Chemical Industry Co., Ltd.) is a producer of methanol and other chemicals. As of 5 February 2026, the company traded at 8.64 CNY, with a market capitalisation of 5.88 billion CNY. Its price‑earnings ratio stood at 118.3, reflecting a high valuation relative to earnings.

The company’s performance on the 6 February trading day was not highlighted in the sector‑wide coverage that noted the strength of chemical‑industry stocks. However, the broader positive movement within the chemical sector – where several peers such as JinNiu Chemical and Cangzhou Da Hua achieved limit‑price gains – suggests a favourable environment for JINNIU CHEMICAL’s products.

Key Takeaways

  1. Sector Strength – The chemical and oil‑and‑gas sectors displayed collective gains, indicating continued demand for base chemicals and related products.
  2. Market Sentiment – Despite a modest overall market decline, the chemical segment’s resilience could support JINNIU CHEMICAL’s share price if the trend persists.
  3. Valuation Context – JINNIU CHEMICAL’s high price‑earnings ratio may constrain upside in the short term, but the sector’s recovery could justify a reassessment of its valuation.

The company should monitor the trajectory of the chemical sector and the performance of its main competitors, as these factors will be crucial in determining its future share‑price movement.