The Chinese stock market, which had risen the previous day, experienced a correction. Geopolitical risks came to the forefront, and profit-taking from the gains made in August was observed. The Shanghai Composite Index closed down 0.16% at 3,979.89, the Shenzhen Component Index fell 1.02% to 13,872.38, and the ChiNext Index dropped 1.32% to 3,393.43.
International oil prices rose as military tensions between the U.S. and Iran escalated. Brent crude surpassed $91 per barrel, and the yield on U.S. 10-year Treasury bonds climbed to 4.78%. Additionally, hawkish comments from Federal Reserve Chair Kevin Warsh raised concerns about a potential interest rate hike in September, adding pressure to global markets.
Profit-taking also flooded the market. As of August 31, the Shanghai Composite Index had risen over 4% for the month, while AI-related sectors saw a 12.41% increase in August. This led to movements to realize profits from overvalued growth stocks on the first trading day of September. According to the China Securities Journal, "AI remains a key investment theme, but investment strategies are shifting from simple 'theme following' to actual performance."
The Purchasing Managers' Index (PMI) for China's manufacturing sector in August was reported at 51.5, up from 50.9 in July, exceeding market expectations. Improvements were noted in production, new orders, and export orders. Reuters interpreted this as a sign of stabilization in China's manufacturing sector.
Content-related stocks saw significant gains, with Mango Excellent Media, Huanyu Century, and Zhongguang Tianze hitting their daily limits. The AI-produced drama 'After Journey to the West' aired on Hunan Satellite TV at 8 p.m. on August 31, achieving the highest real-time viewership in its time slot. The series was created entirely with AI-generated visuals and characters, reportedly reducing production costs by 80-90%.
Grain-related stocks also performed well, with Jin Jian Mi Ye and Wanxiang De Nong reaching their daily limits. Bloomberg's agricultural spot index recorded a 13% increase in August, marking the largest monthly rise since July 2012. Global climate change has negatively impacted crop yields, leading to expectations of a continued upward trend in global grain prices.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7809 yuan, a decrease of 0.0019 yuan from the previous day, reflecting a 0.03% increase in the yuan's value.
* This article has been translated by AI.
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