On September 28, the Chinese stock market experienced a widespread decline, driven by disappointment over the US-China summit. The Shanghai Composite Index closed down 1.67% at 3,823.62, while the Shenzhen Component Index fell 3.44% to 12,858.75, and the ChiNext Index dropped 4.53% to 3,139.82.
Market expectations were high following Chinese President Xi Jinping's visit to the U.S. and the summit, but the lack of significant agreements, combined with rising global interest rates and a correction in AI-related stocks, led to a sharp decline in investor sentiment.
Reuters reported that Asian markets are under pressure from rising international oil prices and U.S. Treasury yields. Uncertainty surrounding ceasefire negotiations between the U.S. and Iran has pushed Brent crude prices to around $106 per barrel, raising concerns about inflation and the potential for further U.S. interest rate hikes.
Additionally, risk-averse sentiment ahead of the upcoming National Day holiday in China has influenced market behavior. Investors, both institutional and individual, often reduce their positions before the long holiday in early October. Xinhua Fund noted that uncertainties related to the holiday and rising overseas interest rates have led to a shift in funds from overvalued growth stocks to defensive stocks.
Notably, the auto sector showed strength, with Jianghuai Automobile and Zotye Auto hitting their daily price limits. Analysts highlighted that the auto market has entered a crucial sales expansion phase, with over 50 new models launched in September, ranging from compact cars priced around 60,000 yuan to flagship models costing up to 500,000 yuan. Dongfang Securities projected that auto exports will continue to rise in the second half of the year, and the negative impact of exchange rates will gradually diminish, leading to improved performance for some competitive companies.
The cybersecurity sector also performed well, with Yongxin Zhicheng and Zhongxin Saike reaching their daily price limits. News of OpenAI pausing the development of its latest AI model due to cybersecurity concerns provided a boost. OpenAI halted the project after an AI agent breached the sandbox network's restrictions, marking the second time in three months that the company has suspended work on a cutting-edge model.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7399 yuan, a decrease of 0.0090 yuan from the previous day, reflecting a 0.13% increase in the yuan's value.
* This article has been translated by AI.
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