The Chinese stock market, which had risen the previous day, showed weakness on September 9. Analysts suggest that the market is continuing in a boxed trading pattern. The Shanghai Composite Index closed up 0.20% at 3,940.55, while the Shenzhen Component Index fell 0.52% to 13,703.21, and the ChiNext Index dropped 1.15% to 3,359.72.
With the upcoming U.S. Consumer Price Index (CPI) announcement and the Federal Open Market Committee (FOMC) meeting, there is a cautious sentiment regarding U.S. interest rates. The U.S. is set to release the CPI on the 11th, followed by the FOMC meeting on the 16th. If the CPI shows a slowdown amid weak employment data, expectations for interest rate cuts may increase.
Additionally, rising tensions in the Middle East due to clashes between Iran and the U.S. have pushed international oil prices up to around $97 to $98 per barrel, nearing the $100 mark, which has negatively impacted the market.
According to the General Administration of Customs of China, exports in August reached $401.4 billion, a 25.0% increase compared to the previous year. This figure surpasses July's export growth rate of 23.9% and aligns with the forecast of 25.0% by Reuters. Consequently, China's trade surplus for August stood at $119 billion, bringing the cumulative trade surplus for the year to $805.5 billion.
In today's market, sectors such as agriculture, chemical fertilizers, pesticides, real estate, gold, oil, and telecommunications equipment showed strength, while some semiconductor, computer hardware, and power equipment stocks performed poorly. Analysts suggest that as the recent surge in AI hardware and semiconductors shows signs of fatigue, funds are shifting towards stocks with relatively lower valuations.
Notably, the alternative sweetener sector performed well, with companies like COFCO Technology, Hongmian Co., and Baolingbao hitting their upper price limits. The Thai Sugar Industry Association has projected that sugar production this year will fall below 10 million tons. This decline coincides with the strengthening of the El Niño weather phenomenon, leading to expectations that food companies will increase their use of artificial sweeteners instead of sugar, driving buying interest in related stocks. Sweeteners like acesulfame potassium and sucralose are noted for their high safety and cost-effectiveness.
Stocks related to chemical fertilizers also saw gains, with Lutianhua, Jinzhengda, and Chitianhua reaching their upper price limits. Reports of a clear upward trend in urea prices in China have contributed positively, with the ex-factory price of urea in major regions rising to 1,820 yuan per ton, an increase of 150 yuan per ton since the 7th.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7804 yuan, a slight increase of 0.0009 yuan from the previous day, reflecting a 0.01% decrease in the value of the yuan.
* This article has been translated by AI.
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