PMVP

The US Federal Reserve kept the target range for the federal funds rate unchanged as expected. The Fifth Plenary Session of the 20th CPC Central Committee will conclude today (29th), with the market awaiting post-meeting announcements. The RMB central parity against the USD was set at 6.7147, up 18 bps daily. The PBOC conducted RMB115 billion seven-day reverse repo operations today at an unchanged rate of 1.4%, and also launched RMB1 trillion overnight reverse repo operations. With RMB1 trillion of reverse repos maturing today, the net liquidity injection reached RMB115 billion for the day.

The three major A-share indices opened 0.1%-1.5% lower before losses widened, ending the morning session down 0.9%-3.6%. The Shanghai Composite Index fell 34 points or 0.93% to 3,647, with turnover of RMB446.759 billion. The Shenzhen Component Index dropped 292 points or 2.55% to 11,180, with turnover of RMB539.98 billion. The ChiNext Index slumped 95 points or 3.63% to 2,539, with turnover of RMB272.433 billion.

Major mainland bank stocks were resilient against the broader market decline. ICBC (601398.SH) +0.190 (+2.220%) and CCB (601939.SH) +0.150 (+1.274%) rose 2.2% and 1.3%, respectively, while AGRICULTURAL BANK (601288.SH) +0.100 (+1.346%) gained 1.4%, CMB (600036.SH) +0.470 (+1.116%) added 1.1%, and BANK OF CHINA (601988.SH) +0.120 (+1.709%) climbed 1.7%. Among insurers, CHINA LIFE (601628.SH) -0.100 (-0.286%) slipped 0.3%, while PING AN OF CHINA (601318.SH) +0.580 (+1.109%) and THE PEOPLE'S INSURANCE (601319.SH) +0.130 (+1.776%) gained 1.1% and 1.8%, respectively. In addition, BYD Company (002594.SZ) -0.230 (-0.278%) edged down 0.3%, while CONTEMPORARY AMPEREX (300750.SZ) +0.240 (+0.105%) rose 0.1%.

After gains yesterday, AI hardware stocks came under broad pressure today as Microsoft's and Alphabet's capital expenditures fell short of expectations. Chipmaker HUA HONG GRACE (688347.SH) -8.480 (-5.473%) dropped 5.5%, while SMIC (688981.SH) -1.660 (-1.627%) fell 1.6%. AI chipmaker CAMBRICON (688256.SH) -48.000 (-5.010%) declined 5%. Domestic GPU stocks METAX (688802.SH) -21.400 (-4.373%) and MOORE THREADS (688795.SH) -40.100 (-10.511%) fell 4.4% and 10.5%, respectively. MOORE THREADS swung to a 3Q26 profit of RMB49.26 million from a loss of RMB453 million a year earlier, with EPS of RMB0.1. Revenue surged 17.7x YoY to RMB1.552 billion. LQKJ (688008.SH) -6.850 (-3.921%) fell 3.9%. Memory chip stock GIGADEVICE (603986.SH) -11.840 (-4.084%) dropped 4.1%. SEMIGHT INSTRUMENTS (688808.SH) -62.130 (-5.940%) declined 5.9%, while CXMT (688825.SH) -0.740 (-1.668%) slipped 1.7%.

Among the three major optical module players known as "Yi Zhong Tian", ZHONGJI INNOLIGHT (300308.SZ) -44.140 (-6.937%) dropped 6.9%, while EOPTOLINK (300502.SZ) -23.810 (-9.272%) slumped 9.3%. TFC (300394.SZ) -38.200 (-18.964%) plunged 19% after reporting 3Q revenue of RMB1.923 billion, up 31.5% YoY, while net profit attributable to shareholders rose 55.3% YoY to RMB879 million. Optical fiber stock YANGTZE OPTICAL FIBRE (601869.SH) -21.440 (-7.138%) fell 7.1%.

YUSHU TECHNOLOGY (688836.SH) -29.900 (-4.297%) declined 4.3% after its 3Q net profit nearly halved QoQ, while R&D investment soared 2.5x YoY.

PETROCHINA (601857.SH) +0.150 (+1.131%) reported net profit of RMB155.776 billion for the first three quarters under IFRS, up 21.9% YoY. Its share price rose 1.1%.

JOINN LABORATORIES (603127.SH) -1.050 (-2.241%) fell 2.2% despite reporting net profit of RMB930 million for the first three quarters, up 10.5x YoY.

The PCB sector plunged, with WUS CIRCUIT (002463.SZ) -9.300 (-8.894%) , DONGSHAN PRECISION (002384.SZ) -8.560 (-8.184%) , VICTORY GIANT TECHNOLOGY (300476.SZ) -12.430 (-6.894%) and HAN'S LASER (002008.SZ) -3.690 (-6.267%) dropping 8.9%, 8.2%, 6.9% and 6.3%, respectively. CCL stocks were broadly weak, with CJS (600176.SH) -1.590 (-5.072%) , SYTECH (600183.SH) -7.340 (-7.162%) and NANYA NEW MATERIAL (688519.SH) -16.780 (-7.339%) falling 5.1%, 7.2% and 7.3%, respectively, while GOLDENMAX INT'L (002636.SZ) +1.460 (+2.492%) bucked the trend to rise 2.5%. MLCC stock THREE-CIRCLE (GROUP) (300408.SZ) -2.800 (-3.218%) declined 3.2%, despite its net profit for the first three quarters rising 97.35% YoY to RMB3.865 billion. (jl/da)(A Shares quote is delayed for at least 15 mins.)