On October 12, the Chinese stock market fell as strong selling pressure followed news of a U.S. patent investigation. The Shanghai Composite Index closed down 0.43% at 3,797.24, the Shenzhen Component Index dropped 2.03% to 12,384.87, and the ChiNext Index fell 2.61% to 2,963.82.
The U.S. International Trade Commission (ITC) has decided to initiate an investigation into allegations of patent infringement under Section 337 of the Tariff Act, based on a complaint from U.S. power module leader Vicor regarding 'vertical power supply systems and components, and computing systems incorporating them.' Chinese IT companies, including Gongyefulian and Luxshare Precision, are included in the investigation, along with Germany's Infineon. Analysts suggest that uncertainty surrounding Chinese companies' access to the U.S. market and advanced industrial supply chains has pressured investor sentiment.
Additionally, according to a Reuters report, rising tensions in the Middle East have heightened concerns over energy prices and inflation, leading to an increase in global bond yields. When bond yields rise, the present value of future profits decreases, putting pressure on technology stocks that reflect high growth expectations. The uncertainty surrounding interest rate forecasts ahead of the U.S. Consumer Price Index (CPI) announcement has also weighed on risk asset investment sentiment.
Wu Qing, chairman of the China Securities Regulatory Commission, met with representatives from listed companies and the securities industry over the weekend to discuss the capital market situation. Although authorities proposed easing requirements for establishing equity funds, this measure has not significantly improved investor sentiment.
On this day, content-related stocks showed strength. Guomai Culture, Bona Film Group, and Shanghai Film all hit their daily price limits. The popularity of ByteDance's overseas short-form drama app, PineDrama, contributed to this positive trend. According to market research firm Sensor Tower, PineDrama surpassed 100 million cumulative downloads within about nine months of its launch, with daily active users reaching approximately 7 million.
Bank stocks also rose, with China Bank, China CITIC Bank, and China Construction Bank reaching all-time highs. So far, 21 listed banks have announced their mid-year dividend plans for 2026, with total planned dividends exceeding 260 billion yuan (approximately $54 billion). Among these, 15 banks have increased their payout ratios compared to the previous year.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7313 yuan, an increase of 0.0017 yuan from the previous day, reflecting a 0.03% decline in the yuan's value.
* This article has been translated by AI.
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