On September 10, the Chinese stock market closed lower as international oil prices surged past $100 a barrel. The Shanghai Composite Index fell 0.43% to 3,934.40, the Shenzhen Component Index dropped 0.77% to 13,617.67, and the ChiNext Index decreased 0.49% to 3,338.42.
The escalation of the war in Iran has led to a sharp increase in global oil prices. Brent crude, which surpassed $100 a barrel the previous day, reached $101.20 on this day. The spike in oil prices has heightened inflation concerns, resulting in rising interest rates; the yield on the 10-year U.S. Treasury note climbed to 4.845%. This increase in rates is also attributed to the U.S. Treasury's announcement of a buyback amount that fell short of market expectations. The Financial Times noted that the yield spread between U.S. and Chinese 10-year government bonds widened to a record 3.17 percentage points, which is expected to increase capital outflow pressure from China to the U.S.
According to the China Securities Journal, the current market is characterized by a structural shift with reduced trading volumes and intense capital movement between sectors. In September, the balance of margin financing has decreased by more than 12 billion yuan, while over 5 billion yuan has flowed into equity ETFs.
Notably, shares related to copper foil for semiconductors saw significant gains. Companies such as Jin'an Guoji and Chaosheng Dianzhi hit their daily price limits. The news that China's Jiang Tao Technology has sent out its seventh price increase notice to clients this year for copper foil used in semiconductors contributed to this positive sentiment. The company announced a 10% price increase for FR-4 copper-clad laminates (CCL) and adjusted prices for prepreg based on specifications, with some thin fiberglass products seeing increases of up to 20%. Panasonic also raised prices for copper-clad laminates starting September 1, with some products increasing by as much as 30%. Nanya Plastics followed suit with a 20-25% price hike.
Bank stocks also performed well, with Ningbo Bank and Nanjing Bank rising by more than 2%. In the first half of the year, banks listed on the Chinese stock market reported a combined revenue of 3.14 trillion yuan, a 7.4% increase from the previous year, while net profit rose by 3% to 1.01 trillion yuan.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7766 yuan, a decrease of 0.0003 yuan from the previous day, reflecting a 0.005% increase in the value of the yuan.
* This article has been translated by AI.
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