The Chinese stock market fell on October 27, following a weak performance the previous day. Concerns over potential additional U.S. sanctions against China dampened market sentiment. The Shanghai Composite Index closed down 1.33% at 3,648.30, while the Shenzhen Component Index dropped 2.50% to 11,245.73. The ChiNext Index ended at 2,548.15.
Chinese media reported that funds previously concentrated in AI hardware and semiconductor stocks are withdrawing, leading to intensified adjustments in technology stocks. Analysts identified overseas valuation pressures on tech stocks, high investor concentration in AI-related sectors, and performance verification as key variables affecting the Chinese market.
According to a report by Reuters on October 26, a speculative bubble in Chinese technology stocks is collapsing, driven by concerns over AI demand and the export conditions for Chinese tech companies. The possibility of the U.S. restricting data center supplies from Chinese optical communication firms is also seen as a factor worsening investor sentiment. If exports of AI-related products from Chinese companies are halted, their corporate valuations are likely to suffer.
China's Zhao Shang Securities noted that while there is potential for a rebound in the stock market, the attractiveness of investments has improved following sharp adjustments. However, the sustainability of any rebound will depend on actual performance and capital inflows.
On this day, stocks related to autonomous driving showed strength. Daming Electronics and Duolun Technology hit their upper price limits. Volkswagen's China division announced it has officially obtained a license for Level 3 autonomous driving road tests in Hefei, Anhui Province. The Volkswagen Group's China division has begun actual road testing and data collection for Level 3 autonomous driving technology in Hefei. Xiaopeng Motors also announced on October 26 via its official Weibo account that it received approval for pilot operations of Level 4 robo-taxis in Guangzhou.
Stocks related to robotics also rose, with Xiangyang Zhicheng and Guangyang Guofen reaching their upper price limits. According to the Chinese economic media outlet Kechuangban Daily, ByteDance has expanded its recruitment for robotics-related personnel, posting new job openings in various fields, including robot body design, precision robotic hands, gearbox control, simulation engineering, and data algorithm engineering.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7171 yuan, a decrease of 0.009 yuan from the previous day, reflecting a 0.01% increase in the value of the yuan.
* This article has been translated by AI.
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