Onshore and offshore yuan both break above 6.7 per dollar, hitting highest since 2023

Hot Topics

Foreign Ministry Responds on Potential China-U.S. Summit

On September 18, Foreign Ministry Spokesperson Guo Jiakun held a regular press briefing. In response to a question from Bloomberg News regarding whether Chinese leadership would visit the United States and the specific dates if so, Guo stated: "China and the United States maintain communication on the arrangement of leaders' interactions within the year."

Shengu Group: Some Investors' Accounts Suspended

From September 14 to September 18, 2026, the Shanghai Stock Exchange (SSE) imposed self-regulatory measures on 50 instances of abnormal securities trading behaviors, including price manipulation and false orders. Notably, since its listing on September 17, the stock price of newly listed Shengu Group has experienced significant volatility. Certain investors engaged in abnormal trading activities that disrupted the normal order of stock trading. The SSE has imposed self-regulatory measures, including suspending account trading, on relevant investors in accordance with regulations.

CSRC Plans to Reward Whistleblowers for 17 Case Leads

The China Securities Regulatory Commission (CSRC) recently announced plans to reward whistleblowers who provide case leads, in accordance with the Securities Law and other relevant regulations. From September 18, 2026, to December 18, 2026, whistleblowers for 17 case leads can register for rewards on the "Whistleblower Reward" section of the official website of the China Securities Investor Protection Fund Corporation. Failure to register and confirm within the specified period will be deemed as forfeiting the reward.

Ministry of Finance Data

• From January to August, national general public budget revenue reached 15,663.3 billion yuan, a year-on-year increase of 5.7%.
• National tax revenue stood at 12,910.4 billion yuan, up 6.6% year-on-year.
• Non-tax revenue was 2,752.9 billion yuan, up 1.5% year-on-year.
• Securities transaction stamp duty from January to August totaled 216 billion yuan, a year-on-year increase of 82%.

Promoting RV Consumption

The General Office of the State Council forwarded a notice from the Ministry of Culture and Tourism and nine other departments on measures to promote RV consumption. The notice encourages regions with suitable conditions to integrate cultural and tourism resources and create a series of distinctive RV travel routes. Tourism enterprises are encouraged to integrate RV sales and rental services, launch customized tourism products, and cultivate and expand the RV consumer market. The development of high-quality self-driving tourism highways is also encouraged, with facilities such as rest stops and observation decks along the routes designed to accommodate RV parking needs.

State Council Executive Meeting

Premier Li Qiang presided over a State Council executive meeting. The meeting emphasized the need for a comprehensive and objective understanding of the impact of population aging, the in-depth implementation of the national strategy to actively respond to population aging, and the promotion of comprehensive development and progress in aging-related affairs. The meeting also noted that sports events are of great significance in meeting the diverse lifestyle needs of the public and improving the quality of life. It called for increasing the supply of high-quality sports events, making full use of various sports venues, facilities, and event resources, and coordinating the development of competitive sports events, professional events, and mass-participation events.

RMB Exchange Rate Trend

On September 18, both onshore and offshore RMB strengthened past the 6.7 mark against the U.S. dollar, reaching a new high since 2023. Multiple industry insiders noted that the RMB appreciation is driven by multiple factors, including a robust foreign trade environment, a current account surplus, and sustained resilience in foreign exchange settlement. Industry forecasts suggest that the RMB exchange rate is likely to maintain a stable and slightly stronger trend in the short term, with a potential trajectory of "strengthening first, then stabilizing" for the full year.

Thematic Opportunities

Semiconductor Sector

According to Caixin, the delivery lead time for key components of South Korean semiconductor equipment has doubled, leading to a severe supply shortage in the equipment industry. As a result, international equipment manufacturers are beginning to consider Chinese component suppliers. Industry insiders generally believe that the current component shortage is due to upstream manufacturers failing to expand production capacity in advance to meet the demand driven by artificial intelligence.

CITIC Securities reports that the semiconductor equipment components sector is experiencing a historically unprecedented chain-wide price increase. Pricing power in the semiconductor industry chain is structurally shifting from chip end-products to equipment and components. Component companies, being smaller in scale with a high proportion of fixed costs, see price increases directly translate into profits. Meanwhile, production line expansion cycles of 12 to 18 months result in the poorest supply elasticity.

Data shows that since September 1, 2026, net capital inflows from major funds have been directed toward a number of semiconductor equipment companies, including Chaoying Materials, Jinhai Tong, Jingyi Equipment, Xidian Co., Fuleide, Lingxian Co., and Hengyun Chang.

AI Chips

Nvidia's artificial intelligence is further penetrating multiple industries, including healthcare, manufacturing, and financial services. The company is expected to double its chip sales next year compared to this year. Jensen Huang noted that the current bottleneck is not demand but Nvidia's capacity to produce chips. Previously, Nvidia projected approximately 70% revenue growth for the fiscal year ending January 2028, with revenue reaching approximately $673 billion.

On the policy front, positive news continues to emerge. The Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued a document on coordinating electronic AI chips with complete machine products, accelerating the development of cloud-based training equipment, and consolidating and expanding the application scale of AI chips.

Concept board data shows that the A-share market currently has 39 stocks related to the AI chip concept, with a combined total market capitalization of approximately 2.76 trillion yuan. In terms of capital flows, data indicates that over the past week, 14 AI chip concept stocks have attracted favor from margin traders. Among them, Muxi Co. saw leveraged capital inflows of 745 million yuan, followed by Cambricon, Boke New Materials, Hengshuo Co., Xingchen Co., Anbotong, and Kunlun Wanwei.

Company News

Shengu Group: The company's stock price has accumulated significant gains. As of September 18, 2026, the company's static P/E ratio and P/B ratio stood at 242.96 and 26.06, respectively. According to the latest data released by China Securities Index Co., Ltd. on September 17, 2026, the industry average static P/E ratio and P/B ratio were 41.74 and 3.50, respectively. The company's P/E and P/B ratios are significantly higher than the industry average. The company currently faces increased short-term stock price volatility and high turnover rates, posing a risk of a sharp correction following rapid gains.

Xinhua Media: The company plans to acquire 100% equity of Shanghai Interface Caixin Technology Co., Ltd. through a share issuance. The issuance price is set at 3.93 yuan per share. This transaction is expected to constitute a major asset重组 and related-party transaction. The company's stock will resume trading on September 21, 2026.

Tianfu Communication: The company's board of directors approved a resolution allowing the company and its subsidiaries to use idle self-owned funds of up to 8 billion yuan for cash management, including the purchase of low-risk, highly liquid wealth management products. This authorization is valid for 12 months from the date of shareholder meeting approval, with funds available for rolling use. The proposal still requires approval at an extraordinary shareholder meeting.

Foxconn Industrial Internet: The company has completed its share buyback plan, repurchasing a total of 15.8334 million shares, representing 0.08% of total share capital. The actual repurchase amount was 1 billion yuan, with a repurchase price range of 59.91 yuan to 66.40 yuan per share. The repurchased shares will be used to maintain the company's value and protect shareholder rights, and are planned to be sold 12 months after the disclosure of the repurchase results.

Aihua Group: The company plans to issue A-shares to specific investors, raising a total of no more than 1.88 billion yuan. After deducting issuance expenses, the funds will be used for the Aihua Group integrated high-end capacitor capacity expansion project and to supplement working capital. The total investment for the integrated high-end capacitor capacity expansion project is 1.507 billion yuan, with 1.5 billion yuan planned from the raised funds. The working capital supplement project plans to use 380 million yuan from the raised funds.

GalaxyCore: The company plans to issue A-shares to specific investors, raising a total of no more than 4.2 billion yuan. After deducting issuance expenses, the funds will be used for the 12-inch CIS integrated circuit specialty process expansion project and high-performance, high-pixel image sensor projects.

Aolian Electronics: The company's controlling shareholder, Ruiying Assets, is planning to transfer part of its equity in the company through a negotiated agreement. This matter may result in a change of the company's controlling shareholder and actual controller. The company's stock has been suspended from trading from the opening on September 21, 2026, with an expected suspension period of no more than two trading days. The final implementation of this transaction remains uncertain.

China Railway Assembly: The company received a "Case Filing Notice" from the CSRC. Due to suspected violations of information disclosure laws and regulations, the CSRC has decided to file a case against the company. Upon self-inspection, this case may involve business conducted prior to the change of the company's actual controller, which has since been discontinued. The company's current production and operations are normal, and it will actively cooperate with the investigation and fulfill its information disclosure obligations.

Kangzhi Pharmaceutical: The company received a "Case Filing Notice" from the CSRC. Due to suspected violations of information disclosure laws and regulations, the CSRC has decided to file a case against the company. As of the date of this announcement, the company's production and operations are proceeding normally, and this matter is not expected to have a significant impact on normal operations. During the investigation period, the company will actively cooperate with the CSRC and fulfill its information disclosure obligations.

CCTV News Broadcast Highlights

• General Secretary Xi Jinping recently issued important instructions on developing advanced manufacturing, emphasizing the need to continuously strengthen and expand advanced manufacturing to provide strong support for advancing Chinese-style modernization.

• Premier Li Qiang presided over a State Council executive meeting on September 18. The meeting heard reports on aging-related work, studied work on promoting the healthy development of sports events, deployed the implementation of a medical rehabilitation and nursing capacity expansion and upgrade project, reviewed and approved the "Traditional Chinese Medicine Knowledge Protection Regulations (Draft)," and discussed the "Amendment to 15 Laws Including the Emergency Response Law of the People's Republic of China (Draft)."

• The State Council Information Office held a press conference today (September 18) as part of the "Starting the '15th Five-Year Plan'" series. Officials from the Ministry of Housing and Urban-Rural Development introduced the situation regarding the promotion of high-quality development in housing and urban-rural construction during the "15th Five-Year Plan" period.

• The State Council Information Office also held a press conference today (September 18). According to the Ministry of Commerce and Guangdong Province officials, the 140th Canton Fair will be held in Guangzhou from October 15 to November 4, divided into three phases.

• Golden Autumn Harvest Season: Rural industries are enriching farmers.

• The United States has returned 64 pieces (sets) of cultural relics and paleontological fossils to China.