On August 5, the Chinese stock market rose for the second consecutive day, buoyed by a revival in global AI investment sentiment. The Shanghai Composite Index closed up 1.47% at 3,878.43, while the Shenzhen Component Index increased by 1.86% to 14,144.20. The ChiNext Index also saw a gain of 1.32%, finishing at 3,535.14.
U.S. markets had shown strength in AI-related stocks the previous night, with major tech companies reporting generally positive earnings. Concerns over the expansion of AI investments eased somewhat, leading to renewed buying interest in technology stocks. Optimism surrounding AI in the U.S. has also spilled over into China, where stocks related to AI servers, data centers, and optical modules rebounded. There is a growing consensus that AI investment in China is still in its early growth phase, supported by corporate earnings.
Additionally, easing tensions related to the conflict between the U.S. and Iran positively impacted the Chinese stock market. The reduction in geopolitical tensions contributed to a decline in international oil prices, including Brent crude.
In a report, Zhongxin Securities stated, "After a period of volatility, the market is returning to a fundamentals-driven logic, and there are expectations that the valuations of technology stocks will recover. Investors should pay attention to sectors that experienced excessive declines in July, particularly technology and growth stocks, as they present opportunities for rebound."
However, stocks related to optical modules (CPO) faced challenges. Reports of the U.S. moving to ban imports of Chinese optical modules created negative sentiment. While these stocks initially plummeted, uncertainty about whether the U.S. would implement such a policy led to a partial recovery in losses. Zhongji Xuchuang, listed in Hong Kong, fell by about 6%, while Xinyi Technology dropped 5%, and Tianfu Tongxin saw a 2% increase.
The MLCC (multi-layer ceramic capacitor) sector performed well, with companies like Bojie Co. and Boqian New Materials hitting their daily price limits. Yinhe Securities noted in a report that demand for MLCCs continues to surge due to high growth in AI server and pure electric vehicle demand, with lead times for suppliers extending. They added that there is currently a significant shortage of ultra-high-capacity MLCCs, and while manufacturers are slightly increasing production, it will take over a year to fully ramp up capacity, leading to a prolonged supply shortage.
Meanwhile, the People's Bank of China set the yuan's daily reference rate at 6.7889 per dollar, a decrease of 0.0028 yuan from the previous trading day, reflecting a 0.04% increase in the value of the yuan.
* This article has been translated by AI.
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