The three major indices of A-shares in Shanghai and Shenzhen fell by 0.6%-1.6% throughout the day, while duty-free concept stocks rose in the afternoon, and chip stocks continued to decline

The People's Bank of China today (5th) conducted a 118.5 billion yuan (the same below) seven-day reverse repurchase operation, with the operation rate remaining at 1.4%. Additionally, it carried out a 300 billion yuan 14-day reverse repurchase operation. Today, 354 billion yuan of reverse repos are maturing, resulting in a net injection of 64.5 billion yuan. The central parity rate of the yuan against the US dollar was lowered by 37 points to 6.9570 per US dollar.

The three major A-share indices opened lower by 0.7% to 1% and then the decline expanded, with a slight recovery in the afternoon. The Shanghai Composite Index fell by 26 points or 0.6% to 4,075 points, with a turnover of 947 billion yuan. The Shenzhen Component Index dropped by 203 points or 1.4% to 13,952 points, with a turnover of 1.23 trillion yuan. The ChiNext Index decreased by 51 points or 1.6% to 3,260 points, with a turnover of 552.3 billion yuan.

Domestic bank stocks Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) rose by 0.8% and 1.3%, respectively. In addition, CATL (300750.SZ) fell by 0.6%. Reports indicate that BYD (002594.SZ) saw its electric vehicle sales in Germany increase more than tenfold year-on-year last month, with its stock price rising by 1%.

Oil and gold stocks declined, with China National Offshore Oil Corporation (600938.SH), PetroChina (601857.SH), and Sinopec (600028.SH) falling by 0.3% to 1.5%. Shandong Gold (600547.SH), Chifeng Jilong Gold Mining (600988.SH), and Zhaojin Mining (000506.SZ) dropped by 3.9% to 6.4%.

Mainland China announced a "zero tariff" policy for imported consumer goods for residents of Hainan Free Trade Port. Duty-free concept stocks rose in the afternoon, with Zhuhai Zhumian Group (600185.SH), Hainan Development (002163.SZ), and Zhongbai Group (000759.SZ) increasing by 3.1% to 4.5%.

Chip-related stocks were under pressure, with SMIC (688981.SH) and Hua Hong (688347.SH) falling by 2.7% and 2%, respectively. AI chip stock Cambricon (688256.SH) dropped by 0.9%. Domestic GPU stocks Muxi Co., Ltd. (688802.SH) and Moore Threads (688795.SH) fell by 2.6% and 1.7%, respectively.

It is rumored that Elon Musk's SpaceX and other teams recently visited several photovoltaic companies in China. However, JinkoSolar (688223.SH) clarified that it has not engaged in any cooperation with Musk's team and has not signed any framework or formal agreements, resulting in a 6% drop in its stock price. Other photovoltaic industry chain stocks developed individually, with Shichuang Energy (688429.SH) plunging by 9.4%. Zerun New Energy (301636.SZ) rose by 3.5%