In August, China’s A-share market grew to several remarkable heights. On August 12, the Shanghai securities composite index reached the highest point in a year and on August 18 it hit the highest point in a decade as growth slowly recovers. With strong expectations of declining interest rates and the central government’s recent decision on building attractive and inclusive capital markets, domestic stocks are expecting to embrace long-term investments and an influx of returned foreign funds. In July, non-bank deposits, a barometer of fluidity in financial markets, increased by 1.39 trillion yuan (US$190b) year-on-year while personal bank deposits dropped. Amid the latest growth, domestic chip and AI designer Cambricon made history by overtaking Kweichow Moutai Group as the A-share champion by stock value on August 28. As China’s only investment target equivalent to Nvidia, Cambricon attracted investors due to the lack of domestic rivals. Experts attribute the growth in the A-share market to cutting-edge technologies.
Old Version
