Executive Summary
The SSE Composite Index ended the week lower at 4,027.26, down from the prior Friday close near 4,163. Daily moves included a 1.37% decline on June 23, small gains on June 24 and 25, and a steep 2.26% fall on June 26 that erased prior progress. The net weekly loss reflected late-session selling that outweighed earlier resilience in select growth areas.
Weekly Drivers
- A regional technology sell-off intensified late in the week, pressuring AI and semiconductor-related shares that had advanced earlier.
- Geopolitical tensions involving renewed US-Iran frictions weighed on risk sentiment across Asian markets.
- Domestic focus remained on upcoming PMI releases for signals on economic momentum.
- Policy signals from the PBOC, including repo operations, provided limited immediate support amid the equity retreat.
Sectors & Breadth
Technology and growth-oriented segments led declines after prior outperformance, while financials and other defensives showed mixed but generally steadier results. The sell-off appeared concentrated rather than broad-based, with mainland benchmarks exhibiting greater exposure to hardware and semiconductor names compared with offshore peers. Overall market breadth narrowed as the week progressed, consistent with sector-specific rotation away from recent leaders.
What to Watch
- China's June PMI data releases for manufacturing and services activity.
- Developments in US-Iran and regional geopolitical talks affecting risk appetite.
- Any further PBOC liquidity measures or policy commentary ahead of quarter-end.
- Earnings updates from key listed companies and their impact on sector rotation.
Capital-Flow Context
Onshore A-share markets showed divergence from Hong Kong-listed peers during the period, with earlier strength in domestic tech and growth segments giving way to pressure. Foreign positioning remained sensitive to global risk factors and currency movements, while passive inflows continued to support overall liquidity in mainland indices. Southbound flows and domestic institutional activity provided a partial offset to the equity weakness observed late in the week.