Shanghai Composite up 1.24% at close, Shenzhen Component up 3.89%, ChiNext up 6.55%, led by solid-state battery, solar equipment, lithography, and silicone stocks

Shanghai Composite up 1.24% at close, Shenzhen Component up 3.89%, ChiNext up 6.55%, led by solid-state battery, solar equipment, lithography, and silicone stocks

The Chinese stock markets continued their upward trajectory on Friday, September 2, 2025, with significant gains across major indices. The Shanghai Composite Index closed up 1.24% at 3,942.76 points, while the Shenzhen Component Index rose by 3.89% to 12,844.71 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, surged by 6.55% to 4,678.49 points [1].

The robust performance was driven by strong performances in the solid-state battery, solar equipment, lithography, and silicone sectors. The solid-state battery sector, in particular, saw significant gains, with stocks in this sector leading the market rebound. The sector's growth is driven by increasing demand for electric vehicles and energy storage solutions, as well as advancements in battery technology [2].

The lithography sector also contributed to the market's performance. Lithography is a critical step in the chip manufacturing process, and advancements in this area can significantly improve chip performance. Chinese companies are actively investing in this sector to reduce their dependence on foreign technology and enhance their domestic capabilities [3].

The ChiNext Index's rebound was bolstered by a federal judge's ruling on September 2, 2025, which lifted antitrust scrutiny from Google and Apple. This decision had a mixed impact on the broader market but provided a positive outlook for the tech sector, particularly the semiconductor industry [4].

The Chinese market's resilience in the face of geopolitical tensions and regulatory changes underscores its ongoing competitive dynamics and geopolitical tensions. As China pushes for self-reliance in the semiconductor industry, local companies are stepping up to fill the gap left by foreign players.

References:
[1] https://www.globaltimes.cn/page/202508/1342067.shtml
[2] https://www.ainvest.com/news/chinext-rebounds-1-5-led-chips-innovative-pharma-solid-state-battery-sectors-2509/
[3] https://wccftech.com/goldman-sachs-chinese-advanced-chip-manufacturing-industry-20-years-behind-western-technology/
[4] https://www.ainvest.com/news/nvidia-strategic-position-china-geopolitical-technological-crosswinds-2509/