The Chinese stock market continued its downward trend on October 13, following a sharp decline in South Korea's market. The Shanghai Composite Index closed up 0.10% at 3,800.86, while the Shenzhen Component Index fell 0.25% to 12,353.70, and the ChiNext Index dropped 0.18% to 2,958.34.
The International Monetary Fund (IMF) has revised its forecast for China's economic growth rate down to 4.5% for this year. The IMF noted that the ongoing slump in the real estate market and weak consumer spending make it difficult for strong export performance to offset domestic weaknesses. This new figure is 0.1 percentage points lower than the July forecast of 4.6% and aligns with the lower end of the Chinese government's growth target of 4.5% to 5.0% for the year. The IMF also lowered its forecast for next year's growth rate from 4.1% to 4.0%.
Yang Delong, chief economist at Qianhai Kaiyuan Fund, pointed out that rising U.S. Treasury yields and the sharp drop in South Korea's stock market negatively impacted Chinese stocks today. He explained, "When U.S. Treasury yields rise, the attractiveness of dollar-denominated assets increases, leading to capital outflows from emerging market stocks. Additionally, the sharp decline in South Korea's market has triggered risk-averse sentiment among Asian investors." He also noted that profit-taking from previously surging tech stocks has dampened overall market sentiment. He added that Chinese tech stocks experienced significant corrections in the third quarter, with some stocks nearly halving from their peak values.
On a positive note, stocks related to winter sports showed strength. Companies such as Bingshan Longru (冰山冷熱), Dalian Shengya (大連聖亞), and Jingxue Jieneng (晶雪節能) hit their daily price limits. The Heilongjiang Provincial Ice and Snow Tourism Development Promotion Association held a promotional event and opening ceremony for the 2026-2027 winter sports season in Guangzhou, themed "Crown of Ice and Snow, Promise with Heilongjiang." Additionally, the venue for the 28th Harbin Ice and Snow Festival is set to expand to 1.25 million square meters, marking the largest scale in history, which has boosted investor sentiment.
Textile dyeing stocks also rose, with companies like Jianxin Guofen (建新股份) and Yabang Guofen (亞邦股份) reaching their daily limits. Dye manufacturer Sanfeng Chemical (三豊化工) announced a price increase for two of its key dye intermediates effective October 10, 2026, which has positively influenced the market. Securities firms predict that as the peak season approaches for the textile industry, production and dyeing processing plants will see a recovery in operating rates, and low inventory levels may lead to a flexible increase in demand.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7298 yuan, a decrease of 0.0015 yuan from the previous trading day, reflecting a 0.02% increase in the yuan's value.
* This article has been translated by AI.
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