The Chinese stock market rebounded on November 4, recovering from previous losses. Analysts attribute the recovery to the implementation of government measures aimed at boosting the stock market, which have restored investor confidence. The Shanghai Composite Index closed up 2.16% at 3,686.17, while the Shenzhen Component Index rose 4.22% to 11,335.69, and the ChiNext Index surged 6.40% to 2,544.73.
After showing weakness in the morning, the Shanghai Composite Index turned positive following the afternoon session. Stocks in the semiconductor, precious metals, robotics, and film and media sectors led the gains, with over 3,000 stocks rising across the Shanghai, Shenzhen, and Beijing exchanges. The rebound is largely attributed to the Chinese financial authorities' support measures for the stock market. The People's Bank of China (PBOC) announced a reduction in the relending rate for supporting share buybacks and increasing major shareholders' stakes from 1.25% to 1%. Previously, applications for loans related to this funding exceeded 200 billion yuan (approximately $40 billion).
This move by authorities to provide substantial liquidity has heightened investor expectations. The Securities, Fund, and Insurance Company Exchange Facility (SFISF), which supports institutional investors in purchasing stocks, is also gaining attention. The PBOC has conducted a third round of operations, supplying 100 billion yuan in funds, with participation from 31 institutions.
According to Zhongtai Securities, “Policy authorities are repeatedly signaling their commitment to stabilizing the stock market and restoring investor sentiment, and the pace of policy-driven capital inflow is accelerating.” However, they cautioned that external uncertainties, such as fluctuations in U.S. Treasury yields and the global AI industry outlook, could hinder the stock market's recovery.
Notably, the semiconductor equipment sector saw significant gains. Toruns hit its upper limit, while Hengxuan Technology and Juxin Technology also recorded substantial increases. The Semiconductor Equipment and Materials International (SEMI) forecasts that global semiconductor equipment sales will reach $165.9 billion this year, a 23.2% increase from the previous year. Semiconductor production and exports in China are also performing well, with integrated circuit (IC) production from January to July 2026 totaling 334.16 billion units, a 23.1% year-on-year increase. During the same period, IC export value surged to $216 billion, a 99.5% increase.
Shares related to physical AI also showed renewed strength. Su Chen Technology, Fulai New Materials, and Zhongma Transmission all reached their upper limits. Wang Xingxing, the founder of Yushuk Technology, recently announced that the company plans to focus on developing brain technology for robots. They aim to seek global collaboration opportunities in addition to developing their own technology to achieve breakthroughs in the physical AI sector. Robotics company Ubtech also announced the official launch of its 'Thinker-Sim' embodied intelligence simulation platform.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7180 yuan, an increase of 0.0030 yuan from the previous day, reflecting a 0.05% decline in the yuan's value.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.