China's three major stock indexes fall in morning session, Shanghai Composite down 1.74%

September 28 — A-share三大 indices opened lower and continued to decline in morning trading. As of the midday close, the Shanghai Composite Index fell 1.74% to 3,820.82 points, the Shenzhen Component Index dropped 3.37%, and the ChiNext Index slid 4.32%. The Beijing Stock Exchange 50 Index fell 2.17%, while the STAR 50 Index declined 4%. Total half-day turnover reached 1.17 trillion yuan, with nearly 4,800 stocks in negative territory.

Liquidity Operations

The People's Bank of China (PBOC) announced that on September 28, it conducted 139 billion yuan in 7-day reverse repurchase operations 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 139 billion yuan and a winning bid volume of 139 billion yuan. Additionally, the PBOC conducted 661 billion yuan in overnight reverse repo operations and 300 billion yuan in 14-day reverse repo operations using a fixed-quantity, rate-based bidding method with multiple pricing tiers.

Policy and Economic Data

Trade Developments

The Ministry of Commerce released details regarding the China-U.S. Trade Council and the "30 billion vs. 30 billion" reciprocal tariff reduction framework. Based on respective market needs and industrial interests, both sides have agreed on reciprocal tariff reduction product lists. The U.S. will reduce tariffs on approximately $30 billion worth of Chinese imports, including toys, home appliances, baby products, kitchen and bathroom items, and holiday gifts. China will reduce tariffs on approximately $30 billion worth of U.S. imports, including agricultural products, personal care items, medical devices, and coal. Both sides have agreed to jointly publish their respective tariff reduction product lists.

Industrial Enterprise Profits

Yu Weining, Chief Statistician of the Industrial Department at the National Bureau of Statistics, commented on industrial enterprise profit data for January–August 2026. The unit cost for industrial enterprises has continued to decline. During the January–August period, the cost per 100 yuan of operating revenue for industrial enterprises above the designated size stood at 85.07 yuan, a decrease of 0.41 yuan year-on-year. Cumulative unit costs have maintained a year-on-year decline since the beginning of the year. The operating revenue profit margin for these enterprises was 5.66%, an increase of 0.44 percentage points year-on-year.

Sector Performance

• Gainers: Commercial vehicles, passenger cars, small home appliances, and medical aesthetics saw selective stocks rise against the market trend.
• Losers: CPO concept stocks, 5G concept stocks, optical fiber concept stocks, and high-speed copper cable stocks underperformed, leading the market decline.

Home Appliance Sector Outlook

The home appliance sector faced a high base in 2025, and retail sales of home appliances continued to face pressure in the first half of 2026, with overall retail growth remaining weak. The domestic home appliance market is expected to follow a pattern of weak performance in the first half and recovery in the second half. As the comparison base eases in the latter part of the year, growth in domestic home appliance sales is expected to recover in the second half of 2026.

Company Highlights

1. Joyoung Co., Ltd.

The company continues to launch new products around core categories such as soymilk makers, rice cookers, blenders, and juice extractors, enriching its product matrix. On the channel side, it is actively expanding into emerging channels and promoting both online and offline channels. By strengthening its internal capabilities, the company aims to improve quality, increase efficiency, and enhance competitiveness.

2. Bear Electric Appliance Co., Ltd.

As a leading domestic creative small appliance company, Bear Electric accurately captures consumer demand and responds quickly with new product development and design. Although short-term performance is under pressure, the company is actively expanding overseas, which offers broad growth potential.

3. Vanward Electric Co., Ltd.

With a weakening base effect, expansion of overseas business scale, improved factory profitability, and gradual optimization of product and channel layout, the company's profit margin is expected to continue recovering.

4. Northking Co., Ltd.

Despite pressure on overall industry volume, the company's domestic revenue still achieved over 20% growth, reflecting strong competitiveness in its high-end brand and product innovation. Structural upgrades remain the medium- to long-term growth driver.