The Chinese stock market continued its downward trend on November 13, following a decline the previous day. Profit-taking pressures led to a loss of momentum in the indices. The Shanghai Composite Index closed down 0.59% at 3,634.35, the Shenzhen Component Index fell 2.05% to 10,968.79, and the ChiNext Index dropped 3.32% to 2,426.08.
The decline in the Chinese market was attributed to concerns over rising global interest rates and weakened investor sentiment in the AI sector. The possibility of interest rate hikes in the U.S. caused international gold prices to plummet, significantly impacting Chinese precious metals stocks. Additionally, uncertainty in the global AI industry following changes in Nvidia's management dampened investor enthusiasm for tech stocks. More than 4,600 stocks in the mainland Chinese market experienced declines.
According to Zhongxin Jientou Securities, "The Chinese stock market, which underwent a deleveraging process at the end of September, faced another round of deleveraging earlier this month." They cited worsening overseas liquidity conditions due to geopolitical tensions in the Middle East and the potential for U.S. interest rate hikes, as well as mixed third-quarter earnings from U.S. companies, contributing to unstable global investor sentiment. They also noted that domestic liquidity pressures in China have not yet been fully resolved. However, the influx of stabilization funds from Chinese authorities into the stock market was seen as a positive sign. Zhongxin Jientou Securities stated, "For the market to confirm a bottom, we need to see additional policy-driven capital inflows, stabilization of margin trading balances, and continued inflows into ETFs," adding that confirming a bottom will take time.
Meanwhile, AI animation stocks showed renewed strength. Companies such as Xingfulan Hai, Hubei Guangdian, and Hengdian Film and Television reached their daily price limits. News that Douyin Group plans to actively support partners capable of producing interactive content, short dramas, and AI animation or games boosted investor interest. Douyin Group is offering incentives guaranteeing a minimum profit of up to 200,000 yuan per project for high-quality content, with additional profit-sharing rates set between 30% and 50%.
Pork-related stocks also performed well, with Tianbang Food and Jin Xin Nong hitting their daily price limits. The market noted that the main contract price for pork futures on the Dalian Commodity Exchange rose by over 2% during the session, briefly surpassing 9,900 yuan per ton. Huatai Securities analyzed that pork prices have significantly declined since October. However, they observed that the rapid reduction in the breeding sow population could lead to a rise in pork prices.
Additionally, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7152 yuan, a decrease of 0.0022 yuan from the previous day, reflecting a 0.03% increase in the yuan's value.
* This article has been translated by AI.
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