On the morning of November 18, 2025, China’s stock markets opened with a flurry of activity and a mix of optimism and caution, as multiple sectors showed divergent trends and key exchange-traded funds (ETFs) recorded notable gains. Investors and analysts alike watched closely as indices, sector leaders, and policy announcements painted a complex picture of the nation’s economic health and strategic direction.
The A-share market, encompassing the Shanghai, Shenzhen, and ChiNext indices, started the day on a slightly negative note. According to reporting by 中国基金报, the Shanghai Composite Index opened at 3962.44 points, down 0.24%. The Shenzhen Component Index dropped 0.31%, while the ChiNext Index slipped 0.51%. Despite the broad indices’ lackluster start, certain sectors quickly distinguished themselves with robust pre-market trading. Lithium extraction from salt lakes and real estate stocks were particularly active, while the Hainan Free Trade Zone and photovoltaic equipment sectors saw upward momentum. In contrast, coal and aerospace military equipment experienced a pullback.
Among the standout performers was the lithium mining sector. As 中国基金报 noted, the segment continued its strong run, with Jin Yuan shares hitting a limit-up for the second consecutive day and other major players like Shengxin Lithium, Guocheng Mining, Dazhong Mining, Yahua Group, and Zhongmin Resources all rising. This surge was underpinned by both market sentiment and forward-looking statements from industry leaders. Ganfeng Lithium’s chairman, Li Liangbin, recently projected a 30% increase in lithium carbonate demand for 2026, estimating a total demand of 1.9 million tons. He warned that if demand growth surpasses 30% and approaches 40%, supply may not keep pace, potentially sending prices soaring to 150,000 or even 200,000 yuan per ton.
Policy developments also lent support to the sector. The National Energy Administration released new guidance promoting the development of 100% renewable energy bases. Meanwhile, the 2025 World Power Battery Conference saw contracts signed for projects totaling 86.13 billion yuan, covering crucial areas like power batteries and providing long-term demand support for lithium and related industries.
Elsewhere, the Hainan Free Trade Zone sector experienced a notable lift at market open. Companies such as Hainan Haiyao and Haima Automobile hit their daily limit-ups, while Kangzhi Pharmaceutical, Shennong Agriculture, and Xulong Holdings each rose more than 5%. The momentum in this sector reflects investor optimism regarding regional economic reforms and policy incentives designed to stimulate growth.
Individual stocks also made headlines. Shengxin Lithium, for example, continued its remarkable streak with another limit-up, marking six consecutive sessions of such gains. According to 中国基金报, the stock was priced at 6.7 yuan per share, giving it a market capitalization of 5.9 billion yuan. This rally followed the company’s announcement on November 10 of a proposed acquisition, involving both share issuance and cash payments to acquire gas-related assets from its controlling shareholder and related parties. The move, benefiting from healthy developments in the new energy and gas sectors, saw the combined assets of the four target companies reach 2.171 billion yuan by the end of September 2025. After resuming trading post-announcement, Shengxin Lithium’s stock surged, capturing investor attention.
Turning to ETFs, the morning session saw a resurgence in trading volumes and price gains. 每日经济新闻 reported that the Science and Technology Innovation Chip ETF (588200) recorded a half-day turnover of 2.367 billion yuan. Semiconductor Equipment ETF (512480), Securities ETF (512880), and Communication ETF (515880) all posted half-day turnovers exceeding 1 billion yuan. On the cross-border front, the Hong Kong Securities ETF (513090) was especially active, with a half-day turnover of over 5 billion yuan.
Among the top gainers, the Semiconductor Equipment ETF (159558) stood out, rising 3.29% in the morning with a share capital of 885 million shares. This ETF, along with others like 159516 and 562590, tracks the China Securities Semiconductor Material Equipment Index, which selects 40 A-share companies involved in semiconductor materials and equipment to reflect the overall performance of this critical sector. The 159516 ETF, for example, saw a half-day gain of 3.22%, with 4.377 billion shares and a transaction amount of 513 million yuan.
The semiconductor sector’s momentum is closely tied to broader technological trends and domestic industrial policy. As Moore’s Law slows and domestic photolithography technology faces bottlenecks, Chinese manufacturers are increasingly focused on innovation through new structures, processes, and materials to boost chip performance. Compared to their overseas counterparts, domestic equipment firms are winning favor by offering effective service, customization, and close alignment with customer needs—advantages that are accelerating the replacement of imported equipment with homegrown solutions. The close cooperation between domestic equipment manufacturers and their upstream and downstream partners is seen as a catalyst for rapid innovation and market share gains.
Meanwhile, in the Hong Kong market, the CSI Hong Kong Stock Connect Pharmaceutical and Health Composite Index (930965) exhibited mixed performance. According to 界面新闻, Baiji Shenzhou led with a 2.69% gain, followed by Yiyang Yangguang up 1.06% and Xinda Biology up 0.88%. Conversely, Zailong Medicine led the declines. The Hong Kong Stock Pharmaceutical ETF (159718) was last quoted at 1 yuan. The index, which tracks 50 highly liquid, large-cap medical and health companies listed in Hong Kong, provides a snapshot of the sector’s performance. As of October 31, 2025, the top ten weighted stocks—including Pharma Biotech, Xinda Biology, Baiji Shenzhou, Kangfang Biology, China Biopharmaceutical, Jingdong Health, Shiyao Group, Sansheng Pharmaceutical, and Pharma Kang Desen Pharmaceutical—accounted for a combined 63.08% of the index’s value.
Despite the overall steady operation of the pharmaceutical industry in the first three quarters of 2025, internal differentiation has become apparent. Innovative drug companies and contract research organizations (CXO) such as Labcorp, Charles River, and Danaher have been highlighted as drivers of structural change and growth within the sector.
Investment analysts point out that the current market dynamics reflect not only sector-specific fundamentals but also the impact of policy tailwinds and technological innovation cycles. The combination of robust ETF activity, sectoral surges in lithium and semiconductors, and ongoing reforms in pharmaceuticals and free trade zones underscores the multifaceted nature of China’s evolving capital markets.
As the trading day progressed, investors weighed these developments, seeking signals for future growth amid a landscape shaped by both global trends and domestic priorities. The interplay of policy, innovation, and market sentiment continues to make China’s equity markets a focal point for both opportunity and risk in the months ahead.
