Tech Sector Margin Financing Drops Sharply; Electronics Down RMB 150.6 Billion, 62 Stocks Fall Over 20%

As of August 3, the margin balance in the electronics industry had fallen by more than RMB 150.6 billion from the end of June, while the communications industry saw a decline of RMB 49.133 billion and the computer industry fell by RMB 17.458 billion. The combined contraction across the three major tech sectors ranked among the largest. A total of 62 stocks saw their margin balances drop by more than RMB 1 billion from the end of June, with declines exceeding 20%, mostly concentrated in core tech growth names. Among optical module leaders, Zhongji Innolight's margin balance fell from RMB 43.656 billion at the end of June to RMB 31.053 billion, a decline of RMB 12.604 billion, or nearly 29%. Cambricon and Eoptolink saw their margin balances drop by RMB 8.487 billion and RMB 7.728 billion respectively, with declines of 32.97% and 27.67%. Stocks such as Shenghong Technology, Demingli, and GigaDevice each saw margin balance reductions of more than RMB 6 billion. In terms of decline magnitude, Hangzhou Cable's margin balance fell the most, at 65.97%. Other stocks including Jin'an Guoji, Defu Technology, Hongjing Technology, Demingli, Pengding Holdings, Far East Company, and Haohua Technology each declined by more than 50%. Among the stocks with sharply reduced margin balances, 22 reported first-half net profit attributable to shareholders up more than 100% year on year. AI supply chain companies showed strong earnings elasticity. Longsys's mid-range first-half net profit jumped nearly 683 times year on year, while Demingli, Biwin Storage, Yuanjie Technology, and GigaDevice all increased by more than 10 times.