ChiNext Leads Declines with 1.17% Drop Amid Broad Market Selloff
SHANGHAI, June 10 – China’s stock markets experienced a sharp afternoon selloff, with the ChiNext Index plunging 1.17% on heavy volume of 1.42 trillion yuan ($196B), up 129B yuan from the previous session. The decline saw over 4,000 stocks fall, though shipping ports and rare earth sectors bucked the trend.
Sector Performance Highlights
| Outperformers | Key Movers | Catalysts |
|---|---|---|
| Shipping Ports (+3.2%) | Nanjing Port, Ningbo Marine (limit-up) | 94% weekly surge in US West Coast freight rates |
| Rare Earths (+2.7%) | Zhongke Magnetic (20% limit-up) | Export control adjustments |
| Innovative Drugs (+1.8%) | Harbin Sanlian (limit-up) | Global competitiveness improvements |
Market Dynamics
The selloff reflected three key factors:
- Profit-taking: Indices approaching recent resistance levels
- Sector rotation: Shift from defense stocks to trade-sensitive names
- Liquidity flows: Notable afternoon volume spike
Institutional Perspectives
- Guotai Haitong: “Shipping demand surge reflects pre-tariff inventory building”
- CSC Financial: “Rare earth price recovery may accelerate with export normalization”
- Market Analysts: “Innovative drug valuations entering stretched territory”
Technical Outlook
Traders are watching two critical levels:
- Resistance: Previous highs at 3,250 (SSE Composite)
- Support: 30-day moving average near 3,120
The shipping rally comes as transpacific container rates hit $6,200/FEU, while rare earths gained on expectations of managed export relaxations. Despite broad declines, market breadth indicators suggest the pullback remains orderly, with fewer than 15 stocks down 9%+.
Investors now await tomorrow’s session to determine whether this represents healthy consolidation or the start of deeper correction, particularly as China extends its EU pork anti-dumping investigation through December 2025 – a move that may presage broader trade tensions.
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