After a decline the previous day, the Chinese stock market rebounded on September 18. Analysts attribute this recovery to optimism surrounding the potential end of the Iran war. The Shanghai Composite Index closed up 0.94% at 3,911.87, the Shenzhen Component Index rose 1.72% to 13,640.87, and the ChiNext Index increased by 2.25% to 3,372.68.
Marsad Bulos, senior advisor for Arab and Middle Eastern affairs to President Donald Trump, stated in an interview with European media outlet Euronews on September 17 that "President Trump believes the war will soon end" and that "he is committed to ending the war and is taking steps to do so." In a separate interview with Axios, Trump mentioned he is facing a "big decision" on whether to completely dismantle the Iranian regime or not, adding that "Iran is in direct contact with the U.S. and still wants to reach an agreement."
International oil prices continued to decline. As concerns over Saudi Arabia's oil supply disruptions eased, Brent crude futures fell 0.95% to $104.82 per barrel, while West Texas Intermediate (WTI) futures dropped 0.51% to $101.91.
Guotai Junan Securities noted that while the downward pressure on the Chinese stock market has significantly eased, the trading volume remains insufficient to confirm a full market recovery. They warned that if trading volume continues to decline, the index may experience further fluctuations. However, if trading volume increases significantly, it could lead to a breakout above key resistance levels, resulting in additional upward momentum.
Notably, the semiconductor backend sector saw significant gains, with companies like Tuolun Si, Gongjin Jufen, and Chengbang Jufen hitting their daily price limits. According to a recent report from Morgan Stanley, the advanced packaging sector is expected to have long-term growth potential due to the rapid expansion of the AI industry. Morgan Stanley forecasts that the advanced packaging market in China could reach 100 billion yuan (approximately $20 billion) by 2029.
Retail stocks also performed well, with Guofang Jituan, Guoguang Liansuo, and Shanghai Jiubai reaching their daily price limits. Data from the National Bureau of Statistics indicated that retail sales of consumer goods in China from January to August totaled 32.7569 trillion yuan, marking a 1.1% increase compared to the same period last year. Retail sales of consumer goods, excluding automobiles, rose by 2.7%. Additionally, the upcoming Mid-Autumn Festival and National Day holidays next week are expected to boost consumer goods and retail stocks.
Meanwhile, the People's Bank of China set the yuan's central parity rate at 6.7521 yuan per dollar, a decrease of 0.0059 yuan from the previous day, reflecting a 0.09% increase in the value of the yuan.
* This article has been translated by AI.
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