China stocks fall at midday; Shanghai Composite drops 0.93%
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
On September 24, China's A-share indices declined in morning trading, with the Shanghai Composite down 0.93% to 3900 points, the Shenzhen Component down 1.74% to 13399.34, and the ChiNext down 1.84% to 3317.33. The PBOC conducted a 515 billion yuan 7-day reverse repo at 1.40%, net draining 110.5 billion yuan due to 162 billion yuan in maturing repos. The State Administration for Market Regulation issued new certification rules for accreditation bodies, with a 6-month transition period. The National Energy Administration reported total installed power capacity reached 41.03 billion kW by end-August, up 11.1% YoY, with solar up 16.3% and wind up 19.6%. Leading sectors included wind power equipment, coking, textiles, and medical aesthetics, while precious metals, components, and PCB lagged. The article highlighted harmonic reducers for humanoid robots, noting domestic firms like Leaderdrive and Lafford Harmonic are accelerating import substitution. Broker recommendations included Southern Precision (rolling bearings), Fengguang Precision (harmonic reducers), Shuanghuan Transmission (gears and reducers), and Yunnan Yunjie (bulk material conveyors).
Source report
Market Performance
On September 24, the three major A-share indices declined during the morning trading session. As of the morning close:
- Shanghai Composite Index: Fell 0.93% to 3,900 points
- Shenzhen Component Index (399001): Fell 1.74% to 13,399.34 points
- ChiNext Index (399006): Fell 1.84% to 3,317.33 points
- STAR 50 Index (1B0688): Fell 1.53% to 1,635.45 points
- Beijing Stock Exchange 50 Index: Fell 1% to 1,063.26 points
Liquidity
The People's Bank of China (PBOC) announced that on September 24, it conducted a 7-day reverse repurchase operation of 51.5 billion yuan via a fixed-rate, quantity-based bidding method, fully meeting the demand of primary dealers. The operation rate was 1.40%, with a bid volume of 51.5 billion yuan and a winning bid volume of 51.5 billion yuan.
According to Wind data, 162 billion yuan in reverse repos matured on the same day, resulting in a net withdrawal of 110.5 billion yuan.
Policy and Regulatory Updates
The State Administration for Market Regulation (SAMR) released the General Rules for Certification Body Qualification Licensing Review (hereinafter referred to as the Rules). The document systematically optimizes licensing standards and approval procedures, strengthens source access control, and promotes the standardized, orderly, and high-quality development of the certification industry. Key highlights include:
- Raised requirements for certification personnel competence and product certification body testing capabilities, directly impacting professional standards.
- A six-month transition period has been set for certification bodies that have already obtained qualifications.
Energy Sector Data
According to data released by the National Energy Administration, as of the end of August, the country's total installed power generation capacity reached 4.103 billion kilowatts, a year-on-year increase of 11.1%. Breakdown:
- Solar power: 1.299 billion kilowatts, up 16.3% year-on-year
- Wind power (885641): 693 million kilowatts, up 19.6% year-on-year
Sector Performance
Leading sectors: Wind power equipment (881280), coke, textile manufacturing (881135), and medical aesthetics (884273) posted gains.
Underperforming sectors: Precious metals (881169), components (881270), and PCB sectors declined, leading the market downturn.
Harmonic Reducer Sector Insights
Harmonic reducers (886008), valued for their lightweight design, high precision, and zero backlash, are well-suited for use in humanoid robot (886069) rotary joints. Japanese manufacturers such as Harmonic Drive have built strong competitive moats through advantages in tooth profile design, processes, and equipment. Domestic players, including Leaderdrive (688017) and Laifu Harmonic (HK3952), continue to advance their technologies. With overseas industry leaders slowing capacity expansion, the pace of domestic substitution is accelerating.
Analyst Recommendations
1. Nanfang Precision (南方精工)
- The company possesses strong needle roller bearing technology and has achieved vertical integration, fostering win-win cooperation with core clients.
- Source: China Galaxy Securities
2. Fengguang Precision (丰光精密)
- One of the few domestic companies capable of mass-producing small micro harmonic reducers (886008). It has signed long-term supply agreements with downstream clients, completing the breakthrough from 0 to 1.
- Source: Shenwan Hongyuan (HK6806)
3. Shuanghuan Transmission (双环传动)
- The company's traditional passenger vehicle (884099) gear business remains stable. High-growth sectors such as engineering machinery (881268) and reducers (886008) are driving revenue growth. Overseas markets are becoming an important growth engine, effectively offsetting domestic market pressures.
- Source: China Merchants Securities (600999)
4. Yunji Group (运机集团)
- A leading domestic company in the design, manufacturing, and installation of bulk material conveying machinery. With capacity expansion and continued delivery of overseas orders, both revenue and profitability are expected to enter an upward trajectory.
- Source: Guoyuan Securities (000728)
Source
同花顺财经Eastern