The three major indices of the Shanghai and Shenzhen A-shares rose by 0.4% to 1% throughout the day, with domestic bank stocks underperforming and semiconductor equipment stocks surging

The Central Economic Work Conference was held in Beijing. The meeting pointed out that internal capabilities should be strengthened to cope with external challenges, and that a moderately loose monetary policy should continue to be implemented. Various policy tools such as reserve requirement ratio cuts and interest rate reductions should be flexibly and efficiently utilized to stabilize the real estate market, actively and orderly resolve local government debt risks, deeply implement special actions to boost consumption, and eliminate unreasonable restrictions in the consumption sector.

The central parity rate of the RMB against the US dollar was raised by 48 points to 7.0638 per US dollar. The People's Bank of China today (12th) conducted a 7-day reverse repurchase operation in the open market amounting to 120.5 billion RMB (the same below), with the operation rate remaining at 1.4%. Today, 139.8 billion RMB of reverse repos matured, resulting in a net withdrawal of 19.3 billion RMB for the day.

The three major A-share indices fluctuated individually in the morning session, but all rose in the afternoon, with the ChiNext index performing relatively strongly. The Shanghai Composite Index closed up 16 points or 0.4% at 3,889 points, with a turnover of 909.95 billion RMB. The Shenzhen Component Index closed up 110 points or 0.8% at 13,258 points, with a turnover of 1.18 trillion RMB. The ChiNext index closed up 30 points or 1% at 3,194 points, with a turnover of 560.2 billion RMB.

Banking stocks were weak, with Bank of China (601988.SH) and Agricultural Bank of China (601288.SH) falling 2.1% and 2.7% respectively. Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) fell 0.4% and 0.7% respectively. Ping An Insurance (601318.SH) rose by 2.2%. In addition, CATL (300750.SZ) and BYD (002594.SZ) rose by 0.7% and 0.8% respectively.

Leading chip stocks showed mixed performance, with SMIC (688981.SH) rising by 2.8% and Hua Hong (688347.SH) falling by 1.3%. Cambrian (688256.SH) also fell by 2.8%. Lens Technology (300433.SZ) retraced by 2.1%.

Semiconductor equipment stocks surged, with Zhaoke Technology (688361.SH) rising by 10.6%. Piotech (688072.SH) rose by 8.6%. KINGSEMI (688037.SH) rose by 3.2%