The three major A-share indices of Shanghai and Shenzhen rose by 0.6% to 1.8% in the first half of the day, with the Hainan sector collectively hitting the daily limit and storage chip stocks soaring

The People's Bank of China announced on December 5 that the 5-year and 1-year LPR rates remain unchanged, in line with expectations. The central parity rate of the RMB against the US dollar was adjusted down by 22 points today (22nd), reported at 7.0572 against one US dollar. The People's Bank of China conducted a 7-day reverse repurchase operation in the open market amounting to 67.3 billion RMB (same below), with the operation rate remaining at 1.4%. Today, 130.9 billion RMB of reverse repos are maturing. The net withdrawal today is 63.6 billion RMB.

The three major A-share indices in mainland China opened higher by 0.3% to 1% this morning, and the gains expanded in the early market. The Shanghai Composite Index closed up 24 points or 0.64% at 3,915 points, with a turnover of 503.14 billion RMB. The Shenzhen Component Index closed up 178 points or 1.36% at 13,318 points, with a turnover of 682.75 billion RMB. The ChiNext Index closed up 56 points or 1.8% at 3,178 points, with a turnover of 304.91 billion RMB.

Major banks such as Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) slightly fell by 0.1% to 0.3% in the first half of the day.

BYD (002594.SZ) rose 0.4% in the first half of the day, while CATL (300750.SZ) opened high but fell back, down 0.9% in the first half. ZTE (000063.SZ) rose 1.7% in the first half.

The "three oil giants" were weak, with PetroChina (601857.SH) and Sinopec (600028.SH) slightly down by 0.1% to 0.3%, and CNOOC (600938.SH) down 1.4%. China COSCO Shipping Energy (600026.SH) rose 3.1%.

The "three telecom giants" were weak, with China Mobile (600941.SH) and China Telecom (601728.SH) down 1% to 1.6%, and China Unicom (600050.SH) down 0.4%.

Major domestic real estate stocks stabilized after opening lower, with Poly Developments (600048.SH), China Vanke (000002.SZ), and Gemdale (600383.SH) rising 0.2% to 0.6% in the first half. Greenland (600606.SH) opened flat and then rose, up 1.2% in the first half.

Major chip stocks performed well, with SMIC (688981.SH) and Hua Hong (688347.SH) rising 5.4% to 6.5% in the first half. Cambricon (688256.SH) rose 1%, and Moore Threads (688795.SH) rose 2.1%.

The Hainan sector surged collectively, with Shennong Agricultural (300189.SZ) and Kangzhi Pharmaceutical (300086.SZ) soaring by 20% and hitting the daily limit, while Intercontinental Oil and Gas (600759.SH), Hainan Ruize (002596.SZ), Hainan Airport (600515.SH), and dozens of other stocks also hit the daily limit.

The storage chip sector continued to strengthen, with Kema Technology (301611.SZ) soaring by 20% and hitting the daily limit, while Aisen Co., Ltd. (688720.SH) and Shanghai Xinyang (300236.SZ) rose about 14% to 16.8%, and Lian Micro (605358.SH) hit the daily limit