The three major A-share indices of Shanghai and Shenzhen fell by 2.5% to 2.7% throughout the day, with telecommunications, oil, gold, and semiconductor stocks all under pressure

Last month, the manufacturing PMI in mainland China fell to 49.3, significantly below expectations; the non-manufacturing PMI also dropped to 49.3, reaching a three-year low; the composite PMI output index retreated to 49.8. As a comprehensive indicator summarizing the operational status of the manufacturing economy with a single value, after seasonal adjustment, the January RatingDog China General Manufacturing PMI recorded 50.3, higher than the market expectation of 50, up 0.2 percentage points from the previous month, exceeding the 50 boom-bust line for two consecutive months, indicating continued improvement in the manufacturing sector, slight expansion, and the fastest growth rate in three months.

Today (2nd), the People's Bank of China conducted a seven-day reverse repurchase operation of 75 billion yuan (the same below) in the open market, with the operation rate remaining at 1.4%. Today, 150.5 billion yuan of reverse repos matured, resulting in a net withdrawal of 75.5 billion yuan. The central parity rate of the yuan against the US dollar was adjusted down by 17 points to 6.9695 per US dollar.

The three major A-share indices gradually declined, with the Shanghai and Shenzhen markets opening lower and the decline widening, while the ChiNext turned from rise to fall. The Shanghai Composite Index closed down 102 points or 2.5%, at 4,015 points, with a turnover of 1.16 trillion yuan. The Shenzhen Component Index closed down 381 points or 2.7%, at 13,824 points, with a turnover of 1.42 trillion yuan. The ChiNext Index closed down 82 points or 2.5%, at 3,264 points, with a turnover of 676.9 billion yuan.

Chinese bank stocks received support against the market trend, with Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) rising 1% and 0.8%, respectively. Vanke (000002.SZ) fell 4.1%, with the company expected to report a loss of 82 billion yuan last year.

Among the three major Chinese telecom operators, China Mobile (600941.SH), China Unicom (600050.SH), and China Telecom (601728.SH), the value-added tax on telecom services was adjusted from 6% to 9%, with stock prices dropping 3.9% to 5.5%.

International oil prices fell, with the three major oil stocks CNOOC (600938.SH), PetroChina (601857.SH), and Sinopec (600028.SH) dropping 2% to 5.6%. Intercontinental Oil and Gas (600759.SH) and Petrochemical Oil Services (600871.SH) both hit the daily limit down.

International gold and silver prices significantly retreated, leading to a sharp decline in gold-related stocks at the market opening, with Shandong Gold (600547.SH), Chifeng Gold (600988.SH), Zhongjin Gold (600489.SH), Zhaojin Gold (000506.SZ), and Hunan Gold (002155.SZ) all hitting the daily limit down.

Chip-related stocks fell, with SMIC A (688981.SH) and Hua Hong (688347.SH) dropping 4.8% and 12.6%, respectively. AI chip stock Cambricon (688256.SH) fell 1.3%. Domestic GPU stocks Muxi Co., Ltd. (688802.SH) and Moore Threads (688795.SH) fell between 3.4% and 5% In addition, CATL (300750.SZ) fell 0.3%. BYD (002594.SZ) fell 4.2%