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A-share indices fall in morning session, Shanghai Composite down 1.74%
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On September 28, China's A-share markets opened lower and continued to decline, with the Shanghai Composite Index falling 1.74% to 3820.82 points by midday. The Shenzhen Component Index dropped 3.37%, the ChiNext Index fell 4.32%, and the STAR 50 Index lost 4%. Nearly 4,800 stocks declined, with a half-day turnover of 1.17 trillion yuan. The People's Bank of China conducted 1390 billion yuan of 7-day reverse repos at a 1.40% rate, 6610 billion yuan of overnight reverse repos, and 3000 billion yuan of 14-day reverse repos. The Ministry of Commerce announced a reciprocal tariff reduction framework with the US, with each side reducing tariffs on approximately $30 billion of imports. The National Bureau of Statistics reported that industrial enterprises' unit costs continued to decline, with revenue per 100 yuan of operating income at 85.07 yuan, down 0.41 yuan year-on-year. Sector performance was mixed, with commercial vehicles, auto manufacturing, small appliances, and medical aesthetics seeing gains, while CPO, 5G, fiber optics, and copper cable concepts led declines. The article also provides analysis on the home appliance sector and profiles companies including Joyoung, Bear Electric, Vanward, and Northking.
Source report
September 28 — China's three major A-share stock indices opened lower and continued to decline in morning trading. As of the midday close:
- Shanghai Composite Index: Fell 1.74% to 3,820.82 points
- Shenzhen Component Index: Dropped 3.37%
- ChiNext Index: Declined 4.32%
- Beijing Stock Exchange 50 Index: Down 2.17%
- STAR 50 Index: Fell 4%
Total half-day trading volume reached 1.17 trillion yuan, with nearly 4,800 stocks declining.
Liquidity Operations
The People's Bank of China (PBOC) announced on September 28 that it conducted:
- 13.9 billion yuan in 7-day reverse repurchase agreements at a fixed interest rate of 1.40%, via quantity-based bidding, fully meeting the demand of primary dealers. The bid volume and winning volume both stood at 13.9 billion yuan.
- 661 billion yuan in overnight reverse repurchase operations.
- 300 billion yuan in 14-day reverse repurchase operations, conducted via fixed quantity, interest rate bidding, and multiple-price auction.
Policy and Trade Developments
The Ministry of Commerce released details regarding the China-U.S. Trade Council and the "300 billion vs. 300 billion" reciprocal tariff reduction framework:
- Both sides have agreed on product lists for reciprocal tariff reductions based on respective market needs and industrial interests.
- 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 parties have agreed to jointly announce their respective tariff reduction product lists.
Industrial Profit Data
Yu Weining, Chief Statistician of the Industrial Department at the National Bureau of Statistics, commented on the industrial enterprise profit data for January–August 2026:
- The unit cost of industrial enterprises has continued to decline.
- From January to August, the cost per 100 yuan of operating revenue for industrial enterprises above the designated size was 85.07 yuan, a decrease of 0.41 yuan year-on-year.
- The cumulative unit cost has maintained a year-on-year decline since the beginning of this 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, complete automobiles, small home appliances, and medical aesthetics saw select stocks rise against the market trend.
- Losers: CPO concept stocks, 5G concept stocks, optical fiber concept stocks, and high-speed copper cable connection stocks underperformed, leading the market decline.
Home Appliance Sector Outlook
The home appliance sector faced a high base in 2025, and retail sales in the first half of 2026 continued to face pressure, with overall retail growth remaining weak. The domestic home appliance market is expected to follow a "low in the first half, high in the second half" trajectory. As the comparison base eases in the second half of 2026, domestic home appliance sales growth is expected to recover.
Key Company Updates
1. Joyoung Co., Ltd.
- Continues to launch new products around core categories such as soymilk makers, rice cookers, blenders, and juice extractors.
- Actively expands into emerging sales channels while advancing both online and offline distribution.
- The company is strengthening its internal capabilities to improve quality, efficiency, and competitiveness.
2. Bear Electric Appliance Co., Ltd.
- A leading domestic manufacturer of creative small home appliances.
- Accurately captures consumer demand and responds quickly with new product R&D and design.
- Despite short-term earnings pressure, the company is actively expanding overseas, offering significant growth potential.
3. Vanward Electric Co., Ltd.
- With a weakening base effect, expanding overseas business, improving factory profitability, and optimized product and channel layout, the company's profit margin is expected to continue recovering.
4. Northking Co., Ltd.
- Despite industry-wide pressure, the company's domestic revenue still achieved over 20% growth.
- This reflects strong competitiveness in high-end branding and product innovation.
- Structural upgrades remain the medium- to long-term growth driver.
Cover image source: National Business Daily Media Library
Source
每经网Eastern
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China A-shares plunge 1.74% as US-China tariff reduction framework announced