The Chinese stock market, which fell the previous day, continued its decline on October 22. Concerns over U.S. sanctions on Chinese AI hardware contributed to the drop in indices. The Shanghai Composite Index closed down 1.48% at 3,658.03, the Shenzhen Component Index fell 2.96% to 11,357.32, and the ChiNext Index decreased by 4.37% to 2,576.90.
Chinese companies in the optical communication sector, which had driven the market's rise in the first half of the year, saw significant losses. Xinyi Technology dropped 12.28%, Zhongji Xuchuang fell 8.76%, and Tianfu Communication declined by 8.36%. The announcement by NVIDIA at the GTC event in Germany, stating that it would collaborate with Taiwanese supply chain partners to increase optical module production capacity by 15 times by mid-2027, negatively impacted the market. Chinese media noted that no mainland companies were included among the key partners announced.
Chinese optical module manufacturers are closely tied to the overseas AI data center supply chain. If they are excluded from the U.S. AI infrastructure supply chain, their performance outlook could worsen. Additionally, renewed concerns about potential U.S. sanctions on Chinese optical modules further pressured stock prices, leading to a broader decline in Chinese indices.
In contrast, the robotics sector showed strength on this day. Mingzhidianqi, Zhaoweijidian, and Saifutian all hit their upper price limits. The unveiling of the new humanoid robot 'H2-X Kung Fu Legend Guardian' by Unitree Technology was seen as a positive development. According to the video released by the company, the robot can operate for up to approximately eight hours, lift a car with its bare hands, and land safely from a height of four meters. It also demonstrated the ability to dent a car door with a kick.
Construction machinery stocks also rose, with Shanhe Intelligent and Nanfang Luji reaching their upper price limits. Bohai Securities reported that excavator sales in China increased by 14.4% in September compared to the same month last year, with domestic sales rising by 7.16%, indicating a slight recovery. The average operating hours of major construction machinery products in September also increased compared to both the previous month and the same month last year, suggesting ongoing improvements in construction and operational activities in downstream industries.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7195 yuan, a slight increase of 0.0003 yuan from the previous day, reflecting a 0.004% decline in the yuan's value.
* This article has been translated by AI.
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