The Shanghai Composite Index temporarily lost 4,000 points, the ChiNext fell 2.1% in half a day, chip stocks declined, while retail and consumer stocks rose against the trend

Mainland China's October CPI rose 0.2% year-on-year, exceeding expectations, while core CPI's increase has expanded for six consecutive months; PPI fell 2.1% year-on-year, slightly better than expected, narrowing for the third consecutive month.

The People's Bank of China today (10th) conducted a seven-day reverse repurchase operation in the open market amounting to 119.9 billion yuan (same below), with the operation rate remaining at 1.4%. Today, 78.3 billion yuan of reverse repos matured, resulting in a net injection of 41.6 billion yuan. The RMB central parity against the US dollar was lowered by 20 points to 7.0856 per dollar.

The three major A-share indices opened high but closed low, with the Shanghai Composite Index temporarily losing the 4,000-point mark, and the ChiNext falling over 2%. The Shanghai Composite Index closed at 3,996 points, down 1 point or 0.03%, with a turnover of 637.3 billion yuan; the Shenzhen Component Index closed at 13,325 points, down 78 points or 0.6%, with a turnover of 803.7 billion yuan; the ChiNext closed at 3,139 points, down 68 points or 2.1%, with a turnover of 347.2 billion yuan.

Banking stocks supported the Shanghai Composite Index, with Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) rising 0.4% and 1%, respectively. In addition, CATL (300750.SZ) fell 2.5%. BYD (002594.SZ) rose 2.8%.

Retail and consumer stocks rose against the trend, with China Duty Free Group (601888.SH) and Dongbai Group (600693.SH) both hitting the daily limit. JiuGuiJiu (000799.SZ) and Gujing Gongjiu (000596.SZ) each rose over 5%.

International gold prices rose, and gold-related stocks followed suit, with Shandong Gold (600547.SH), Zhongjin Gold (600489.SH), and Chifeng Jilong Gold (600988.SH) rising between 1.4% and 3%.

Leading chip stocks fell, with SMIC (688981.SH) and Hua Hong Semiconductor (688347.SH) down 2.6% and 7%, respectively. Technology stock Cambrian (688256.SH) also fell 5.6%.

Wentai Technology (600745.SH) rose 3.6%. Regarding the issue with Nexperia, the Chinese side agreed to the Dutch Ministry of Economic Affairs sending personnel to China for consultations and hopes that the European side will urge the Netherlands to withdraw relevant measures as soon as possible