The central parity rate of RMB against USD was set at 6.7743, up 23 bps daily and hitting a new high since 6 February 2023. The PBOC conducted RMB4 billion of 7-day reverse repo operations today (11th), with the operation rate unchanged at 1.4%. As no reverse repos matured today, the single-day net injection amounted to RMB4 billion.

The three major A-share indices opened lower by 0.6% to nearly 1%, with losses widening afterward. By midday, the indices had fallen 1.8% to 2.3%. The Shanghai Composite Index dropped 71 points, or 1.82%, to close the morning at 3,862, with turnover of RMB619.18 billion. The Shenzhen Component Index fell 318 points, or 2.34%, to 13,298, with turnover of RMB655.668 billion. The ChiNext Index declined 68 points, or 2.04%, to 3,270, with turnover of RMB291.411 billion.

Among mainland bank stocks, ICBC (601398.SH) +0.070 (+0.864%) rose 0.9%, CCB (601939.SH) +0.160 (+1.461%) gained 1.5%, AGRICULTURAL BANK (601288.SH) +0.080 (+1.153%) added 1.2%, CMB (600036.SH) -0.070 (-0.168%) slipped 0.2%, while BANK OF CHINA (601988.SH) +0.070 (+1.072%) climbed 1.1%. Among mainland insurers, CHINA LIFE (601628.SH) -0.110 (-0.287%) fell 0.3%, PING AN OF CHINA (601318.SH) -0.290 (-0.522%) dropped 0.5%, and THE PEOPLE'S INSURANCE (601319.SH) -0.060 (-0.756%) declined 0.8%. In addition, BYD Company (002594.SZ) -0.050 (-0.060%) edged down 0.1%, while CONTEMPORARY AMPEREX (300750.SZ) -8.410 (-2.488%) sank 2.5%.

Among chip stocks, HUA HONG GRACE (688347.SH) -11.130 (-4.966%) slid nearly 5%, while SMIC (688981.SH) -3.080 (-2.584%) dropped 2.6%. AI chip stock CAMBRICON (688256.SH) -35.840 (-3.433%) fell 3.4%. Domestic GPU stocks METAX (688802.SH) -27.800 (-5.630%) and MOORE THREADS (688795.SH) -16.200 (-4.450%) lost 5.6% and 4.5%, respectively. LQKJ (688008.SH) -6.910 (-3.538%) declined 3.5%. Optical fibre stock YANGTZE OPTICAL FIBRE (601869.SH) +0.560 (+0.129%) gained 0.1%. Memory chip stock GIGADEVICE (603986.SH) -16.120 (-4.235%) fell 4.2%. SEMIGHT INSTRUMENTS (688808.SH) -25.920 (-1.064%) dropped 1.1%, while CXMT (688825.SH) -2.240 (-3.916%) lost 3.9%.

Among the three major optical module players known as "Yi Zhong Tian", ZHONGJI INNOLIGHT (300308.SZ) +16.270 (+1.828%) rose 1.8%, TFC (300394.SZ) -13.840 (-5.145%) dropped 5.1%, and EOPTOLINK (300502.SZ) +4.100 (+0.998%) gained 1%.

YUSHU TECHNOLOGY (688836.SH) -24.850 (-4.984%) fell nearly 5%.

Suiyuan Tech (688801.SH) +254.430 (+178.949%) debuted on the STAR Market. The stock opened 1.9x higher at RMB410 and was up 1.8x at midday at RMB396.61.(jl/ad)(A Shares quote is delayed for at least 15 mins.)