The Chinese stock market rebounded on August 4 after a decline the previous day. Analysts attribute the rise to improved investor sentiment following stabilization in international oil prices.
On this day, the Shanghai Composite Index closed up 0.33% at 3,822.28, the Shenzhen Component Index rose 3.25% to 13,885.71, and the ChiNext Index increased by 5.64% to 3,488.97.
The easing of Middle Eastern risks, as the United States postponed attacks on Iran, contributed to the positive market sentiment. Although international oil prices saw a significant drop the day before, they experienced a partial rebound. Market participants interpreted this as a reduction in fears of worst-case scenarios, such as a blockade of the Strait of Hormuz. As the world's largest oil importer, China's economy, which has a high manufacturing sector, benefits from stable oil prices.
Additionally, the U.S. stock market showed strength the previous day, particularly in the big tech and AI sectors, which helped restore some investor confidence. This led to increased buying in Chinese stocks related to AI servers, semiconductor equipment, optical modules, and data centers.
China's major financial institution, Zhongjin Securities, noted in a report that since late July, the index has fluctuated and entered a consolidation phase. They suggested that the Chinese stock market could enter a recovery phase in August after this adjustment, stating, "As more sectors show signs of rebounding from the bottom of the economic cycle, there will be an increasing number of areas with improved performance and supply-demand dynamics."
Among the notable performers, the AI computing power rental sector saw significant gains. Companies such as Hangyun Technology, Hongjing Technology, and Qingyun Technology hit their daily price limits. According to a report from the China Data Communication Center, demand for AI computing power in the first quarter of this year surged by 417% compared to the previous year, while the effective supply growth rate was only 128%. This disparity has led to rising rental prices for data center computing power.
Stocks related to optical modules also experienced gains. Dongshan Precision and Huilv Ecological Technology reached their daily price limits. Nvidia has begun shipping its next-generation Spectrum X CPO (optical module) switches to partner companies, and Broadcom has reportedly shipped a small quantity of CPO switches as well. This has led to evaluations that CPO production has officially entered the mass production stage.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7894 yuan, an increase of 0.0002 yuan from the previous day, reflecting a 0.003% decline in the yuan's value.
* This article has been translated by AI.
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