Chinese stocks, which had seen a slight increase the previous day, fell on August 11. The indices lost ground as negotiations between the U.S. and Iran showed signs of stagnation. The Shanghai Composite Index closed down 0.82% at 3,934.09, while the Shenzhen Component Index dropped 0.40% to 14,259.44. The ChiNext Index, however, rose 0.34% to finish at 3,549.16.
The peace talks between the U.S. and Iran, as well as discussions regarding the reopening of the Strait of Hormuz, are facing significant challenges. U.S. President Donald Trump has complicated negotiations by demanding compensation for damages caused by the war, raising concerns that the normalization of the Strait of Hormuz may take longer than expected. Due to instability in the Middle East, Brent crude oil prices have surged to around $88 per barrel, marking the highest level since July 31.
The upcoming release of the U.S. Consumer Price Index (CPI) for July on August 12 is also seen as a critical factor. Rising oil prices could lead to higher-than-expected inflation in the U.S., which may dampen expectations for interest rate cuts by the Federal Reserve. Additionally, the recent significant gains in the Chinese stock market have prompted profit-taking, contributing to the decline.
According to a report from China International Capital Corporation (CICC), the Shanghai Composite Index has risen 4.7% since July 20, while the ChiNext Index has increased by 3.9%. The report noted, "Considering the current domestic and international environment and the state of China's capital markets, the recovery trend since July 20 is likely to continue, and the medium-term upward trend remains intact."
Data center stocks saw significant gains on this day. Companies such as Hangang Co. and Hongbo Co. hit their daily price limits. The news that Alibaba has completed a method to reduce the construction period of large AI data centers to 100 days served as a positive catalyst. Typically, building a data center takes about a year, but Alibaba's modular construction process has cut the time by 100 days and reduced costs by 10%. This has led to expectations of accelerated data center construction, boosting related stocks.
Film-related stocks also performed well, with companies like Huazhi Shumei and Beijing Culture reaching their daily price limits. Several box office hits have emerged, with this month's box office already surpassing 2 billion yuan. The film "Spider-Man" is currently leading in ticket pre-sales. Additionally, the new release "Welcome to Dragon Restaurant," which premiered on August 11, has received a rating of 9.8, the highest in the past three years.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7900 yuan, an increase of 0.0016 yuan from the previous day, reflecting a 0.2% decline in the yuan's value.
* This article has been translated by AI.
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