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Shanghai and Shenzhen A-shares Midday: Three Major Indices Down 0.7% to 1.8%; ZHONGJI INNOLIGHT (300308.SZ) Slips Nearly 3%
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Amid continued tensions between the US and Iran, the RMB central parity against the USD was set at 6.8150, down 20 bps MoM. The PBOC conducted RMB188.5 billion of 7-day reverse repos today (11th) at an unchanged rate of 1.4%. With no reverse repos maturing today, the single-day net injection amounted to RMB188.5 billion. The three major A-share indices opened lower by 0.3% to 0.4%, with losses widening subsequently. By midday, they were down 0.7% to 1.8%.

The Shanghai Composite Index closed at 3,964 at midday, down 28 points or 0.73%, with turnover of RMB745.053 billion. The Shenzhen Component Index fell 197 points or 1.32% to 14,756, with turnover of RMB849.52 billion. The ChiNext Index dropped 69 points or 1.79% to 3,785, with turnover of RMB398.635 billion.

Related NewsInflation Rate MoM for May in China is -0.1%, lower than the previous value of 0.3%. The forecast was -0.2%.
Among financials, ICBC (601398.SH) fell 0.3%, while CCB (601939.SH) rose 0.5%. In the insurance sector, CHINA LIFE (601628.SH) declined 1.3% and CHINA PACIFIC INSURANCE (601601.SH) fell 1.7%. In addition, BYD Company (002594.SZ) dropped 1.3%, and CONTEMPORARY AMPEREX (300750.SZ) slipped 1.9%.

In the chip sector, SMIC (688981.SH) rose 0.4%, while HUA HONG GRACE (688347.SH) fell 2%. AI chipmaker CAMBRICON (688256.SH) declined 2%. Domestic GPU makers METAX (688802.SH) and MOORE THREADS (688795.SH) fell 1.3% and rose 0.7%, respectively. LQKJ (688008.SH) dropped 1.9%. Optical fibre producer YANGTZE OPTICAL FIBRE (601869.SH) fell 2.9%. Memory chipmaker GIGADEVICE (603986.SH) declined 1.9%.

International oil prices strengthened, lifting COSL (601808.SH) by 1.3% and PETROCHINA (601857.SH) by 0.9%.

Related NewsVehicle Sales YoY for May in China is -2.1%, higher than the previous value of -2.5%.
ZHONGJI INNOLIGHT (300308.SZ) was added to the US Department of Defense’s 1260H list. The company stated that the designation and its basis do not align with objective facts. Its shares fell 2.9% by midday. (jl/da)
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