The Shangai Composite Index Closes 0.19% Higher

The Shanghai Composite edged up 0.2% to 3,896 on Wednesday, while the Shenzhen Component rose 0.4% to 13,795, as investors eagerly awaited developments from the ongoing National People’s Congress Standing Committee meeting. The August 25–28 session is being closely watched for policy support following weak economic data and repeated pledges from policymakers to bolster growth. Meanwhile, China Merchants Bank is issuing a three-year floating-rate note linked to the overnight bond repurchase rate, becoming the first domestic commercial lender to do so. Earlier this month, the Export-Import Bank of China became the first policy bank to issue debt tied to the same benchmark. The shift reflects the PBOC’s efforts to elevate the overnight repo rate as the primary anchor for short-term funding costs, bringing the policy framework closer to international standards. Notable gainers included BYD (1%), Victory Giant Technology (1.9%), and Wus Printed Circuit (3.9%).

The Shangai Composite Index rose 7 points or 0.19 percent on Tuesday to close at 3889 points. Leading the gains are Yonghui Superstore (3.67%), Sanan Optoelectron (3.18%) and Jiangsu Lianyungang (2.52%). Top losers were China Molybdenum (-2.74%), Zijin Mining (-2.52%) and Hengli Petrochemical (-2.08%).

The Shanghai Composite rose 0.19% to close at 3,889.4 on Tuesday, while the Shenzhen Component slipped 0.35% to a near one-month low of 13,745.9, as weakness in technology stocks left the benchmarks mixed. Investors continued to trim exposure to the sector ahead of a pivotal earnings week, with Nvidia’s results on Wednesday expected to test confidence in the AI trade. In China, Eoptolink Technology fell 2.70% even after reporting strong annual revenue and net profit growth. Other notable decliners included Hua Hong Semiconductor (-1.08%), Zhongji Innolight (-2.78%), and NAURA Technology (-1.06%). In contrast, Luxshare Precision Industry climbed 2.1% after posting increases in both first-half profit and operating revenue. Meanwhile, investors also turned their attention to the National People's Congress Standing Committee meeting, which runs from August 25 to August 28, for potential policy signals aimed at supporting growth amid slowing economic momentum.