[China Stock Market Closing]Chinese Stocks End Slightly Higher on Bargain Hunting

(Seoul=Yonhap Infomax) Ji Yeon Kim – On the 24th, Chinese equities fell to a six-month intraday low but rebounded in the afternoon as bargain hunters entered the market, closing marginally higher.

According to the Yonhap Infomax World Stock Index (Screen No. 6511), the Shanghai Composite Index finished at 3,836.77, up 1.88 points, or 0.05%, from the previous session.

The Shenzhen Composite Index closed at 2,390.98, gaining 20.66 points, or 0.87%.

Chinese stocks initially dropped to a six-week low during the session, pressured by weakness in semiconductor shares. However, the market reversed course in the afternoon as bargain buying emerged.

Reports that the United States is considering allowing exports of Nvidia Corp.'s H200 semiconductor chips weighed on Chinese semiconductor stocks, which are seen as alternatives to Nvidia products, dragging down indices in morning trading.

Nevertheless, the influx of bargain hunters in the afternoon helped the indices recover.

Cambricon Technologies Corp. (SHS:688256), a Chinese AI chip designer, fell as much as 2.5% in the morning session to a one-month low but rebounded to close higher by the end of trading.

Expectations for new stimulus measures from the Chinese government ahead of the December Central Economic Work Conference (CEWC) also provided upward momentum. The CEWC is an annual meeting held every December to discuss China's economic growth targets for the coming year.

Dovish remarks from John Williams, President of the Federal Reserve Bank of New York, on the 21st also boosted global risk appetite, supporting Chinese equities. Williams stated in a speech, "I still see the possibility of further adjustments to the target range for the federal funds rate (FFR) in the near term to move policy closer to a neutral stance."

The Chinese yuan was set stronger against the US dollar.

On the morning of the 24th, the central parity rate for the dollar-yuan exchange was set at 7.0847 yuan, down 0.0028 yuan (0.04%) from the previous session, indicating an appreciation of the yuan against the dollar.

Key Trend: Chinese equities rebounded from multi-month lows on bargain hunting, with semiconductor stocks initially under pressure but recovering as expectations for policy support and global risk appetite improved. The yuan strengthened against the dollar.

jykim@yna.co.kr

(End)