The three major indices of A-shares in Shanghai and Shenzhen showed divergent trends throughout the day, with the Shanghai Composite Index rising 0.3% and Vanke falling over 7%

The People's Bank of China today (27th) conducted a seven-day reverse repurchase operation of 356.4 billion yuan (the same below) in the open market, with the operation interest rate remaining at 1.4%. Today, 300 billion yuan of reverse repos matured, resulting in a net injection of 56.4 billion yuan. The central parity rate of the yuan against the US dollar was adjusted up by 17 points to 7.0779 per US dollar, reaching a new high since October 14, 2024.

The three major A-share indices stabilized in the morning session, with some developments in the afternoon. The Shanghai Composite Index slightly rose at the close, while the Shenzhen Component and ChiNext were relatively weak. The Shanghai Composite Index closed at 3,875 points, up 11 points or 0.3%, with a turnover of 698.5 billion yuan; the Shenzhen Component Index closed at 12,875 points, down 32 points or 0.3%, with a turnover of 1.01 trillion yuan; the ChiNext Index closed at 3,031 points, down 13 points or 0.4%, with a turnover of 494.7 billion yuan.

In the banking sector, Industrial and Commercial Bank of China (601398.SH) closed flat. China Construction Bank (601939.SH) fell by 0.1%. Additionally, Contemporary Amperex Technology Co., Limited (300750.SZ) dropped by 0.4%. BYD Company Limited (002594.SZ) also fell by 0.8%.

Vanke will hold a bondholder meeting on the 10th of next month to review the bond extension matters, with Vanke A (000002.SZ) dropping by 7.1%. Other domestic property stocks also weakened, with Poly Developments (600048.SH), Greenland Holdings (600606.SH), Suzhou High-tech (600736.SH), China Real Estate Information Corporation (002285.SZ), and Gemdale Corporation (600383.SH) falling between 1.5% and 3.5%.

Retail stocks continued to perform strongly, with MAOYE COMMERCIAL (600828.SH) hitting the daily limit for three consecutive days. Guangbai Co., Ltd. (002187.SZ) also hit the daily limit for two consecutive days. Dongbai Group (600693.SH) rose by 1.1%.

Among leading chip stocks, SMIC (688981.SH) closed flat. Hua Hong Semiconductor (688347.SH) fell by 1.7%. Technology stock Cambricon Technologies (688256.SH) slightly rose by 0.2%. Industrial Fulian (601138.SH) rose by 2.3%, significantly raising its repurchase price limit