China Stocks Slump on Semiconductor Selloff
2026-08-19 02:08
By
Czyrill Jean Coloma
1 min. read
The Shanghai Composite tumbled 2.40% to close at 3,894.4 on Wednesday, while the Shenzhen Component slumped 5.01% to 13,890.2, as a broad selloff in semiconductor stocks weighed heavily on both benchmarks.
Chipmakers came under pressure worldwide as government bond yields surged amid persistent inflation, elevated fiscal spending, and heavy debt issuance.
In addition, geopolitical tensions fueled concerns over energy supply disruptions, reinforcing fears that inflation and financing costs could remain elevated.
The decline followed GigaDevice's H1 2026 results, which slightly missed the company's expectations despite revenue soaring 178.7% year-on-year to RMB 11.57 billion and net profit surging 1,091.5% to RMB 6.86 billion.
SMIC (-5.16%), Cambricon Technologies (-9.64%), Hygon Information Technology (-7.26%), GigaDevice (-7.56%), Hua Hong Semiconductor (-11.92%), Zhongji Innolight (-9.36%), Eoptolink Technology (-9.0%), and NAURA Technology (-8.24%) were among the biggest decliners.