On August 27th, the A-share market experienced a sudden plunge in the afternoon, with over 4700 stocks falling across the market. Notably, during the sharp decline in the afternoon, the trading volume also surged dramatically. The market turnover reached 3.2 trillion yuan, an increase of 488 billion yuan compared to the 26th, attracting high market attention. The stock price of AI chip giant Cambricon once surpassed Kweichow Moutai, triggering a major market plunge and being seen as the “Moutai curse” of the A-share market recurring.
By the close, the Shanghai Composite Index fell by 1.76%, barely holding above 3800 points; the Shenzhen Component Index fell by 1.43%; and the ChiNext Index dropped by 0.69%.
In the Hong Kong stock market, there was also a synchronized decline in the afternoon, with all three major indices dropping by over 1%, including the Hang Seng Biotech Index plunging by over 4%.
On the 27th, the Shanghai Composite Index briefly surged to 3887.20 points during trading, but continued to decline in the afternoon. The market even witnessed a sharp drop towards the end of the session, plummeting over 80 points from the peak, with a decline of over 1.5%; both the Shenzhen Component and ChiNext Indices hit new interim highs during trading, but with the overall market downturn, the indices quickly retreated.
By the close, over 4700 stocks in the entire market had fallen.
What caused the sudden change in the afternoon market on August 27th?
A significant event occurred that day, with Cambricon’s intraday stock price reaching a high of 1464.98 yuan per share, rising over 10% and temporarily surpassing Kweichow Moutai to become the stock with the highest “unit price” in the A-share market.
However, this led to a major market plunge, once again manifesting the “Moutai curse” in the A-share market.
In history, stocks such as China Shipbuilding, Alltron Education, and Changchun High-tech had prices surpassing Kweichow Moutai, becoming the highest-priced stocks, but without exception, they all experienced significant declines after surpassing Moutai, hence the term “Moutai curse”.
However, industry analysts believe that the sharp drop in the A-share market on August 27th was more likely influenced by various macroeconomic data (such as the decline in industrial profits in China) and market expectations, and Cambricon’s “climb” and plunge seemed more like a trigger or a significant event that ignited emotions.
By the close, Cambricon’s rise had fallen to 3.24%, with a stock price of 1372.10 yuan.
This month, Cambricon’s rise has exceeded 100%, with a cumulative increase of over 2500% since 2023.
On the news front, on the evening of August 26th, Cambricon released its 2025 interim report. The report stated that in the first half of 2025, Cambricon achieved operating income of 2.881 billion yuan, a year-on-year increase of 4347.82%; net profit attributable to shareholders was 1.038 billion yuan, turning losses into profits.