October 13th news — A-share market movements once again show a stark divergence, with bank stocks continuing to hit new highs while small-cap tech names keep sliding to new lows. Yesterday, more than 4,300 A-share stocks were waiting eagerly for gains, while sectors once celebrated as "standing in the light, walking into the chip" — optical communications, PCB, and semiconductors — have now become "standing there stripped bare, with mixed feelings in the chip."
According to Wind data, the biggest decliners today were again tech sectors such as semiconductors, copper-clad laminates, and optical communications. Youyan Silicon dropped more than 10%, while copper-clad laminate leaders including Hongchang Electronics, Jin'an Guoji, and Huazheng New Materials hit the daily limit down. Xingwang Ruijie, Jianqiao Technology, and Changying Tong suffered second-round sharp declines.
Looking over a longer period, from July 1, 2026 to now, former big winners have become widespread laggards, with stocks cut in half commonplace. Storage leaders including Demingli, Baiwei, Zhaoyi, and Jiangbolong all fell more than 60%. Optical communications winners such as Changguang Huaxin, Fenghuo Communications, Yongding Shares, Hengtong Optic-Electric, and Changjin Photonics all dropped by more than half. Commercial aerospace high-flyers like Xinwei Communications and Chaojie Shares likewise fell over 50%. There were also PCB supply chain names such as Honghe Technology and Dingtong Technology, and semiconductor leaders including Puran, Xiangnong, Dongxin Shares, and Yake Technology.
Meanwhile, Zhongji Innolight Co.,Ltd. (ASX: 300308), which was heavily bought by public funds with holdings exceeding 170 billion yuan and ranked first, has fallen more than 40% since July, dropping like a speculative stock with no sign of the strength or composure expected of hard tech. At the same time, everyone has discovered a truth: time will prove Moutai's worth. Previously, Lianxun, Yuanjie, Cambricon, and Zhongji Innolight all saw their share prices surpass Moutai. Now they have all been trampled underfoot by Moutai, which has once again become the A-share stock king. Even during the real estate downturn, and even as earnings growth begins to falter, it remains the anchor of A-share stock prices.
Today, everyone also noticed a problem: while small-cap tech names are plunging, bank stocks continue to climb, with ICBC, CCB, and Bank Of China Limited (ASX: 601988) all hitting new highs, with market caps exceeding Moutai's. There is an even more stinging story: the first half of this year was a solid tech bull market in A-shares, but after three quarters, tech stocks this year can best be described as the worst performers. To put it simply: Bank Of China Limited has outpaced Zhongji Innolight Co.,Ltd. in year-to-date gains.
Among them, Changxin Technology fell 1.34% year-to-date, CATL dropped 17.2%, Foxconn Industrial Internet fell 14.7%, and Zhongji Innolight Co.,Ltd. gained 19.1% year-to-date. Meanwhile, CCB, Bank Of China Limited, PetroChina, and China Shenhua all rose more than 20%, outperforming Zhongji Innolight Co.,Ltd. Among bank stocks, Qingdao Bank surged 43%.
The banking sector's rally is the result of multiple combined factors: first, capital seeking safe haven, especially as small-cap tech names have plunged since June; second, insurance funds, banks, and state-backed funds aggressively chasing high-dividend assets and quasi-fixed-income assets for stable returns; third, during an economic downturn, capital embracing quasi-fixed-income products like bank stocks; fourth, a large volume of dividend-oriented assets favoring sectors such as banks, insurance, power, and energy.
At the same time, after a quarter of sharp declines in small-cap tech names, everyone has finally realized there is more than just: 1) overseas risks from the US creating new problems every day; 2) oil inflation risks from Iran-US conflicts; 3) quantitative selling pressure; 4) passive redemption risks from public funds; 5) stampede risks from main forces reducing positions and retail crowding, along with panic selling risks. There is another extremely important reason highlighted by the market: insurance funds selling off.