Shanghai Index Hits Six-Week Low Amid Semiconductor Stock Weakness

(Seoul=Yonhap Infomax) Ji Yeon Kim – On the 24th, Chinese equities fell to their lowest level in six weeks, weighed down by a slump in semiconductor stocks.

The Shanghai Composite Index closed the morning session at 3,821.68, down 0.34% from the previous close, marking its lowest level since October 13. As of 14:07 local time, the index was trading at 3,821.54, down 0.35%.

The decline in Chinese stocks was largely driven by weakness in semiconductor shares. Reports that the United States is considering allowing exports of Nvidia Corp.'s H200 semiconductor chips pressured Chinese semiconductor stocks, which had been viewed as alternatives to Nvidia products.

Cambricon Technologies Corp. (SHS:688256), a Chinese AI chip designer, dropped 2.5% to hit a one-month low. The stock has fallen nearly 10% this month.

The CSI AI Index, which tracks Chinese semiconductor stocks, declined 1.2%. The blue-chip CSI 300 Index fell 0.6%.

With the year-end approaching, institutional investors are engaging in profit-taking and refraining from expanding positions, adding further downward pressure on the indices.

In a report, CICC Securities said, "We expect the stock market to remain volatile until the Central Economic Work Conference (CEWC) in December, with large-cap blue chips likely to lead market fluctuations during this period."

China holds the CEWC annually in December to discuss economic growth targets and policy directions for the coming year.

Meanwhile, Hong Kong stocks advanced, buoyed by news of Alibaba Group Holding Ltd.'s chatbot launch. At the same time, the Hang Seng Index was up 1.63% at 25,632.15, while the Hang Seng China Enterprises Index rose 1.40% to 9,044.74.

jykim@yna.co.kr

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