At the opening bell on August 28, the Shanghai Composite Index dipped 0.16% to 3,950.24 points, while the Shenzhen Component Index fell 0.21% to 14,019.28 points. The ChiNext Index dropped 0.56% to 3,453.73 points, and the STAR 50 Index slid 0.52% to 1,684.72 points. As of 9:33 AM, a total of 2,286 stocks advanced across the two main exchanges and the Beijing Stock Exchange, while 2,796 declined and 469 remained flat.
Sectors leading the gains included non-metallic materials, agricultural product processing, real estate services, fishery, and oilfield services. On the flip side, power equipment, pharmaceuticals and biotechnology, conglomerates, banking, beauty and personal care, and non-ferrous metals led the declines.
Market Conditions
All three major A-share indices opened lower on August 28, with the ChiNext and STAR 50 indices posting the steepest drops of more than 0.5%. Despite overnight gains on Wall Street fueled by NVIDIA's better-than-expected earnings report, A-share tech heavyweights failed to follow suit, as semiconductor and telecommunications sectors weakened at the open. Capital rotated toward lower-valued cyclical sectors such as agricultural product processing and oilfield services, while themes like non-metallic materials and advertising and marketing showed relative activity. Declining stocks outnumbered advancing ones, with gainers accounting for roughly 40% of the market, highlighting notable divergence between bulls and bears.
Overnight Highlights
U.S. stocks closed higher on August 27, with the Dow Jones Industrial Average rising 0.20% to 53,569.44 points, the Nasdaq climbing 1.57% to 26,541.35 points, and the S&P 500 gaining 0.72% to 7,730.99 points. NVIDIA surged 8.74% after reporting second-quarter revenue of $96.2 billion for fiscal 2027, up 106% year-over-year, with data center revenue reaching $89 billion, a 117% increase. The company's third-quarter revenue guidance of approximately $108 billion exceeded market expectations. The Philadelphia Semiconductor Index advanced 2.33%.
The People's Bank of China conducted 103 billion yuan in 7-day reverse repos and 503.5 billion yuan in overnight reverse repos on August 27, resulting in a net injection of 606.5 billion yuan. National Bureau of Statistics data showed that industrial enterprises above a designated size achieved total profits of 4.58206 trillion yuan in the first seven months, up 17.6% year-over-year. Meanwhile, the Ministry of Industry and Information Technology revealed on August 26 that the "15th Five-Year Plan" for the intelligent connected new energy vehicle industry has been formulated, aiming to cultivate 500 zero-carbon factories.
Semiconductor Manufacturing International Corporation reported first-half net profit of 4.467 billion yuan, up 94.2% year-over-year. China Life posted attributable net profit of 134.489 billion yuan in the first half, a surge of 228.6%, with a planned dividend of 3.58 yuan per 10 shares. Tianqi Lithium's first-half net profit reached 4.242 billion yuan, soaring 4,925.46% year-over-year. Sunway Communication plans to acquire a 55% stake in Yiyang Electronics Technology for 1.1 billion yuan.
Market Outlook
While NVIDIA's earnings beat drove U.S. tech stocks higher overnight and lifted the Philadelphia Semiconductor Index by 2.33%, A-shares did not follow suit, with all four major indices opening lower. The ChiNext and STAR 50 indices fell more than 0.5%, while semiconductor and telecommunications sectors weakened, with capital flowing more toward defensive low-position sectors like agricultural product processing and oilfield services. The central bank's net injection of 606.5 billion yuan on August 27 and the 17.6% year-over-year growth in industrial profits for January-July, combined with the dense release of interim reports, have created a relatively positive sentiment backdrop. However, declining stocks outnumbering gainers, with advancers at roughly 40%, points to persistent market divergence.
Institutional consensus leans toward the view that with interim reporting nearing its end and improving overseas liquidity expectations, the broader market may continue its volatile recovery in the short term, with rotation opportunities emerging in the tech sector. However, the Shanghai Composite Index faces resistance at the annual moving average, and the sustainability of any rebound will depend on volume support.
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