Chinese stocks continued their upward trend on August 26, following gains from the previous day. News of progress in negotiations between the U.S. and Iran provided a boost. The Shanghai Composite Index closed up 0.59% at 3,912.52, the Shenzhen Component Index rose 0.69% to 13,841.33, and the ChiNext Index increased by 0.51% to 3,414.88.
Russian state news agency RIA Novosti reported on August 25, citing sources, that the U.S. and Iran have agreed to a ceasefire proposal that includes free navigation in the Strait of Hormuz. The sources indicated that an announcement regarding the ceasefire agreement could be made within days. However, the report did not provide further details. The visit of CIA Director John Ratcliffe to Moscow on August 25 has fueled speculation about progress in the negotiations. It remains unclear whom Ratcliffe met or what discussions took place, but there are expectations that topics such as the Ukraine war and the conflict with Iran were addressed.
Additionally, optimism surrounding Nvidia's earnings report has contributed to a rally in Chinese technology stocks. There was notable buying activity in sectors such as semiconductors, artificial intelligence, and robotics.
The People's Bank of China also announced on the same day that it injected 239.5 billion yuan into the market through a seven-day reverse repurchase agreement, which was seen as a positive factor for market liquidity.
Notably, stocks related to nuclear fusion surged, with companies like Rongfa Nuclear Power and Baidi Electric hitting their daily limits. At the '2026 Nuclear Fusion Energy Conference' held in Shanghai on August 25, a consortium led by the state-owned China Nuclear Fusion Energy and eight other companies was formed. The consortium aims to develop and test a 25T-class high-temperature superconducting magnet by 2028 and produce prototypes by 2030.
Financial stocks also performed well, with Chu Tian Long and Xiangcai Securities reaching their daily limits. As listed securities firms continue to report their earnings, it has been confirmed that many are achieving strong results. Zhongtai Securities reported a 146.8% increase in net profit for the first half of the year compared to the previous year, while Caida Securities and Huahuan Securities also saw their net profits more than double.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7829 yuan, a decrease of 0.0023 yuan from the previous day, reflecting a 0.03% increase in the value of the yuan.
* This article has been translated by AI.
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