On August 27, the Chinese stock market recorded gains for the third consecutive trading day. NVIDIA's earnings exceeded market expectations, and the profitability of Chinese industrial companies continued to soar, contributing to the positive momentum. The Shanghai Composite Index closed up 1.13% at 3,956.57, the Shenzhen Component Index rose 1.50% to 14,048.88, and the ChiNext Index increased by 1.71% to 3,473.35.
Overnight, NVIDIA reported second-quarter earnings that surpassed market forecasts. Notably, revenue from data centers surged 117% year-over-year to $89 billion. The company also provided a revenue outlook for the next quarter that exceeded expectations. Reuters noted that NVIDIA's earnings announcement contributed to a three-day rise in Asian markets, particularly boosting investor sentiment in AI-related stocks.
Additionally, the National Bureau of Statistics of China released figures showing that the total profits of industrial enterprises increased by 17.6% year-to-date through July. Profits in the computer, telecommunications, and electronic equipment manufacturing sectors soared by 110%, while the semiconductor sector saw a staggering 1,850% increase. The computer manufacturing sector rose by 330%, and profits in the computer peripheral manufacturing sector increased by 250%. The National Bureau of Statistics attributed the growth in the electronics industry to rising demand and prices related to AI, noting that the profit increase in the semiconductor sector accounted for over 80% of the overall profit growth in the electronics industry.
Among notable stocks, those related to optical modules (CPO) showed strong performance. Companies such as Saiwei Electronics and Qingshan Paper reached their daily price limits. Zhejiang Securities reported that "NVIDIA is currently developing related switch products with supply chain partners, and a significant number of switch products utilizing CPO technology will be introduced globally over the next year," adding that "CPO has moved beyond the verification stage and is entering commercialization."
Stocks related to printed circuit boards (PCBs) also performed well, with Jin'an Guoji and Hongchang Electronics hitting their daily price limits. China's leading PCB manufacturer, Huden Guofen, announced that its revenue for the first half of the year increased by 61.1%, with net profits rising by 73.2%. These figures exceeded expectations and were seen as a positive sign for the entire PCB industry.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7840 yuan, an increase of 0.0011 yuan from the previous day, reflecting a 0.02% rise in the value of the yuan.
* This article has been translated by AI.
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