The Chinese stock market, which had risen the previous day, fell on September 4. After starting the morning session with gains, the indices reversed course in the afternoon as selling pressure increased. The Shanghai Composite Index closed down 0.30% at 3,930.12, the Shenzhen Component Index fell 0.79% to 13,516.97, and the ChiNext Index dropped 0.78% to 3,286.55.
After two consecutive days of declines earlier in the week, the Chinese market managed a slight rebound on September 3. However, the recovery was modest. Following the previous day's gains, the indices opened higher on September 4 but faced persistent selling, particularly around 2 p.m. local time when the selling intensified. No major negative news emerged that day. Analysts noted that profit-taking in AI and semiconductor stocks, which had surged recently, contributed to the increased selling pressure in the afternoon.
Additionally, pessimistic forecasts regarding foreign capital exiting the Chinese market further weakened the indices. The market was also affected by a wait-and-see attitude ahead of the U.S. employment data release that evening, which contributed to the overall selling trend.
Haitong Securities stated, "U.S. Treasury yields are becoming a key variable for the Chinese stock market this fall," predicting that the yield on 10-year U.S. Treasuries could rise to 5% in September but return to around 4.3% in the fourth quarter. They added, "The AI market is expected to continue at least until early 2028, but currently, we are experiencing a fluctuating range-bound market."
Digital currency-related stocks showed strength that day, with companies like Chuiwei Co. and Chutianlong hitting their daily price limits. The likelihood of the U.S. Federal Reserve raising interest rates has decreased, leading to a rise in Bitcoin and other cryptocurrencies. Digital currency stocks also saw significant gains in the U.S. market, with Chinese digital currency stocks following suit.
Additionally, pork stocks rose, with companies like Luoniushan and Zhenghong Technology reaching their daily price limits. Reports of rising pork prices in China contributed to this positive trend. Pork producers are reducing their shipment volumes, and with the start of the school year, demand for pork is increasing, driving prices higher. The average wholesale price of pork rose to 11.09 yuan per kilogram that day, up from 10.6 yuan the previous day.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7787 yuan, a decrease of 0.0020 yuan from the previous day, reflecting a 0.03% increase in the yuan's value.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.