The Chinese stock market, which had risen for two consecutive trading days, showed signs of adjustment on July 22, attributed to profit-taking by investors.
On this day, the Shanghai Composite Index closed up 0.07% at 3,867.03, while the Shenzhen Component Index fell 1.42% to 14,061.44, and the ChiNext Index dropped 3.23% to 3,566.73.
The previous day, the Chinese market had experienced a significant rise due to stabilization measures from the securities authorities and a rebound in the semiconductor sector. However, as investors took some profits, the upward momentum slowed, leading to a slight decline in the market.
Additionally, analysts noted that the market was in a wait-and-see mode ahead of earnings reports from Alphabet (Google) and Tesla, with investors keenly interested in whether the AI investment cycle would continue and if the scale of AI investments by major U.S. tech companies would be maintained.
Despite the profit-taking, the China Securities Regulatory Commission reaffirmed its commitment to market stability, preventing a significant drop.
Huaxi Securities stated in a report, "The recent market adjustment has alleviated some short-term selling pressure, and based on this, a rebound occurred this week, followed by today's adjustment. With buying and selling balanced, there is a high possibility that the rebound will continue from a technical perspective."
Notably, stocks related to supernodes surged, with companies like ZTE Corporation and Gongjin Technology hitting their daily price limits.
A supernode is a massive AI computing system that connects thousands of AI semiconductors to function as a single giant computer. Following Huawei's unveiling of the 'Atlas 950 Superpod' supernode on July 17, Tencent announced plans to establish a supernode in the fourth quarter of this year, which has been seen as positive news. Tencent also explained that it aims to build large-scale domestic AI computing power to drastically reduce inference costs.
The precious metals sector also saw gains, with companies like Shanjin International and Chifeng Jilong Gold Mining reaching their daily price limits.
On this day, the international spot gold price rose by more than 1% throughout the day, surpassing $4,120 per ounce. Ongoing global geopolitical tensions have led to a continuous rise in the prices of precious and industrial metals, particularly as central banks around the world continue to purchase gold.
Meanwhile, the People's Bank of China set the yuan's reference exchange rate against the dollar at 6.7933 yuan, an increase of 0.0016 yuan from the previous day, reflecting a 0.02% rise in the value of the yuan.
* This article has been translated by AI.
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