On September 16, the Chinese stock market rebounded after five consecutive days of decline. Analysts attribute this recovery to a technical rebound following the recent downturn. The Shanghai Composite Index closed up 0.71% at 3,891.60, the Shenzhen Component Index rose 1.26% to 13,454.74, and the ChiNext Index increased by 1.96% to 3,311.47.
The market had faced four days of losses due to rising interest rate risks in the U.S., soaring oil prices, and corrections in U.S. tech stocks. As the prolonged decline was seen as excessive, bargain hunting emerged. While the Chinese stock market successfully rebounded, some analysts suggest that a stronger upward trend is needed to confirm a sustained recovery.
Additionally, the U.S. 10-year Treasury yield stabilized around 5%, and international oil prices saw a slight decline during Asian trading, contributing to the rebound in the Chinese market. There are also indications that the concerns regarding further deterioration in the market have eased, rather than a complete resolution of negative factors.
Furthermore, the People's Bank of China issued a message emphasizing its commitment to maintaining stable operations in the stock market, which bolstered buying interest. According to the Financial Times, Chinese securities regulators are managing IPO prices and volumes to maintain investor confidence and market stability.
Notably, stocks related to optical modules saw significant gains. Major companies such as Dongtianwei, Xinyi Technology, and Tianfu Tongxin all recorded substantial increases. Zhongjin Securities reported that some optical chip companies in China have secured orders through 2028, and the order backlog for optical module firms is already filled for next year's supply, predicting continued high demand for optical modules next year.
The semiconductor materials sector also showed strength, with companies like Youyangu and Zhongjing Keji hitting their upper price limits. Citic Securities noted in a report that the supply of silicon wafers remains extremely tight, and wafer producers are likely to raise supply prices next month. They further projected that price increases will continue not only this year but also into next year.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7628 yuan, a decrease of 0.0042 yuan from the previous day, reflecting a 0.06% increase in the value of the yuan.
* This article has been translated by AI.
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