On September 21, the Chinese stock market saw gains, driven by optimism surrounding the upcoming US-China summit. The Shanghai Composite Index closed up 0.97% at 3,949.91, the Shenzhen Component Index rose 0.65% to 13,730.02, and the ChiNext Index increased by 0.80% to 3,399.59.
On September 24, U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Washington. As part of the preparations, U.S. Treasury Secretary Scott Vessenet and Chinese Vice Premier He Lifeng held a high-level economic and trade meeting in New York on September 20. Following the meeting, Vessenet told reporters, "We had very successful discussions with the Chinese side on trade and AI. We proposed establishing a notification system for incidents related to AI, and both sides agreed to continue discussions on AI-related matters."
Additionally, expectations that the trade truce between the two countries will be extended contributed to the positive sentiment. The current tariff suspension is set to expire on November 10, and it is anticipated that it will be extended for at least six months as a result of the summit.
Huatai Securities noted in a report that the recent interest rate hike by the U.S. Federal Reserve temporarily alleviated uncertainties regarding overseas liquidity, leading to a rebound in previously suppressed tech stocks. However, it also pointed out that weak macroeconomic data in China, a slowdown in profit recovery, and cautious investment sentiment ahead of the National Day holiday are putting pressure on the Chinese stock market. The firm concluded that while there may be a temporary rebound, the upward momentum could be limited.
Real estate stocks saw significant gains, with companies like Shilianhang, Wo Ai Wo Jia, and Huayuan Holdings hitting their daily price limits. This surge followed a briefing from the Ministry of Housing and Urban-Rural Development on September 18, where it was officially stated that the Chinese real estate market is transitioning from an "incremental era" to a "stock era," indicating a shift towards improving the living conditions of existing homes rather than increasing new housing supply. Analysts interpret this as a government effort to stimulate the housing market by reducing new supply.
The pharmaceutical sector also performed well, with companies like Jinan Danbai and Baihua Yiyao reaching their daily price limits. Citic Securities reported that China's innovative drugs are entering a stage of global value realization, with an increasing number of companies successfully going global. It noted that some new drug companies are expanding their commercialized product volumes, and the globalization of pipelines with global potential is also progressing rapidly.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7487 yuan, a decrease of 0.0034 yuan from the previous trading day, reflecting a 0.05% increase in the value of the yuan.
* This article has been translated by AI.
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