FX.co ★ China Stocks Fall on Semiconductor Selloff

The Shanghai Composite Index fell 1% to 3,953 on Wednesday, while the Shenzhen Component Index dropped 2.2% to 14,301, as a broad selloff in semiconductor stocks dragged both benchmarks lower. Chipmakers faced pressure globally amid a sharp rise in government bond yields, driven by persistent inflation, elevated fiscal spending, and heavy debt issuance. At the same time, escalating geopolitical tensions fueled worries over potential energy supply disruptions, reinforcing concerns that inflation and borrowing costs could remain high for an extended period.

These declines came despite robust results from GigaDevice, which posted first-half 2026 revenue of RMB 11.57 billion, a 178.7% year-on-year increase, while net profit attributable to shareholders jumped 1,091.5% to RMB 6.86 billion. Nevertheless, investors continued to rotate out of the semiconductor sector. Among the notable losers were SMIC (-1.3%), Hygon Information Technology (-3.0%), GigaDevice (-1.6%), Hua Hong Semiconductor (-2.0%), Zhongji Innolight (-1.3%), and Eoptolink Technology (-3.1%).