The Chinese stock market showed slight gains on September 22, following two days of increases. Analysts attributed the market's performance to profit-taking after a recent rebound and a cautious sentiment ahead of the upcoming holidays. The Shanghai Composite Index closed up 0.06% at 3,952.13, while the Shenzhen Composite Index fell 0.05% to 13,723.74, and the ChiNext Index rose 0.01% to 3,399.93.
After a morning of gains, the Chinese market largely gave back its earlier increases in the afternoon. Analysts suggested that this was not due to any new major negative developments but rather a technical correction following the recent rebound. From September 16 to 21, the Shanghai Composite Index rose approximately 2.2%, the Shenzhen Component Index increased by 3.3%, and the ChiNext Index gained 4.7%. On September 22, investors who had benefited from the rebound were incentivized to realize their profits. According to China Securities Journal, as the market rebounded, investor focus has shifted back to earnings and economic momentum, but short-term rotation is likely to continue.
Additionally, Guangda Securities reported on September 22 that risk-averse sentiment ahead of the holidays is contributing to the market's adjustment. With weak macroeconomic data in China, they predict the market will remain in a sideways range for the time being. The Chinese stock market is approaching the Mid-Autumn Festival on September 25 and the National Day holiday from October 1 to 7, with both institutional and individual investors appearing to be more inclined to take profits rather than aggressively increase their stock holdings ahead of the holidays.
Notably, AI-related stocks saw significant gains on this day. Companies such as Nanwei Software, Zhidu Guofen, and Xinhua Wenxuan hit their daily price limits. The recent news that Meta's Muse, touted as the world's first personal AI agent for everyone, has topped the iPhone app download rankings for three consecutive days has boosted investor sentiment. As the potential of AI agents is validated, stocks of Chinese AI agent development companies have also surged.
Semiconductor stocks also performed well, with Broadcom and Ruixinwei reaching their daily price limits. JP Morgan estimated in a report that the market size for customized AI ASICs (application-specific integrated circuits) could reach approximately $60 billion to $70 billion by 2026, with an expected annual growth rate (CAGR) exceeding 40% to 50% over the next few years.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7459 yuan, a decrease of 0.0028 yuan from the previous day, reflecting a 0.04% increase in the value of the yuan.
* This article has been translated by AI.
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