The Chinese stock market rebounded on August 12 after a decline the previous day. Technology stocks, including those in AI and semiconductors, saw a resurgence, contributing to a generally positive market atmosphere. The Shanghai Composite Index closed up 0.32% at 3,946.68, the Shenzhen Component Index rose 1.09% to 14,414.43, and the ChiNext Index increased by 1.49% to 3,602.08.
Investors showed renewed interest in technology stocks, which had been undergoing corrections. Notably, the successful listing of memory semiconductor company CXMT and news of domestic production of DUV (deep ultraviolet) lithography machines were seen as positive developments. Additionally, large-scale AI data center construction is underway, and China's AI models are receiving acclaim in the global market. These sectors experienced overall gains during the trading session.
The upcoming release of the U.S. Consumer Price Index (CPI) for July was also a focal point for the market. Recent U.S. employment data has been weaker than expected, reviving speculation about potential interest rate cuts by the Federal Reserve. Today's CPI report is anticipated to be a key factor in determining the Fed's future interest rate direction.
However, geopolitical tensions in the Middle East and rising international oil prices have posed challenges for the Chinese stock market. Brent crude oil rose by 0.6% to $89.46 per barrel. Ongoing tensions between the U.S. and Iran over the Strait of Hormuz continue to create uncertainty. Analysts suggest that these geopolitical risks have limited the extent of the market's gains.
In a report released today, CITIC Securities stated, "The AI industry remains robust, with technology stocks and AI hardware taking a leading position in the market. We do not see a reversal of the long-term upward trend, and after fluctuations within a range, we expect a return to an upward trajectory."
Among the notable performers today, the memory semiconductor sector showed strength. Xiandaojidian hit its upper limit, while CXMT recorded a gain of over 6%. A report released today projected that the memory semiconductor market size will reach $969 billion this year, with expectations of $1.44 trillion in 2027 and $1.82 trillion in 2028, indicating strong growth. Furthermore, a supply shortage in the memory semiconductor market is expected to worsen over the next two years, with a slight improvement anticipated by 2028.
The optical module sector also saw gains, with companies like Juguang Technology, Yongding Guofen, and Kechuan Technology reaching their upper limits. U.S. optical module company Lumentum reported a 109% increase in revenue for the second quarter of this year. The sustained revenue growth among optical module companies has positively impacted the stock prices of Chinese optical module firms.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7882 yuan, a decrease of 0.0018 yuan from the previous day, reflecting a 0.03% increase in the value of the yuan.
* This article has been translated by AI.
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