<div id="readability-page-1"><div>Amid escalating tensions in Iran, US President Donald Trump accused Iran of shooting down a US helicopter over the Strait of Hormuz and vowed to respond, after which the US launched strikes against Iran. The RMB central parity against the USD was set at 6.8130, up 17 bps MoM. The People's Bank of China conducted RMB159 billion of seven-day reverse repos today (10th) at an unchanged rate of 1.4%. With no reverse repos maturing, the single-day net injection was RMB159 billion.China's May CPI rose 1.2% YoY, slightly below expectations. May PPI increased 3.9% YoY, in line with expectations. The three major A-share indices opened 0.6% to 1.6% lower this morning and fell 0.6% to 2.3% by midday. The Shanghai Composite slipped below the 4,000 level at the open and closed at 3,986 at midday, down 23 points or 0.58%, with turnover of RMB807.012 billion. The Shenzhen Component Index fell 295 points or 1.94% to 14,972, with turnover of RMB923.185 billion. The ChiNext Index dropped 90 points or 2.29% to 3,870, with turnover of RMB427.468 billion.Among financials, ICBC (601398.SH) +0.130 (+1.724%) rose 1.7%, while CCB (601939.SH) +0.250 (+2.413%) gained 2.4% to a record high. In the insurance sector, CHINA LIFE (601628.SH) +1.390 (+4.194%) climbed 4.2% and CHINA PACIFIC INSURANCE (601601.SH) +1.020 (+3.233%) added 3.2%. Meanwhile, BYD Company (002594.SZ) -1.490 (-1.622%) fell 1.6%, stating that its inclusion on a Chinese military-related enterprises list was unjustified and would not affect normal operations. CONTEMPORARY AMPEREX (300750.SZ) -10.850 (-2.716%) declined 2.7%.In chip stocks, SMIC (688981.SH) -0.490 (-0.385%) dipped 0.4%, while HUA HONG GRACE (688347.SH) +0.240 (+0.106%) edged up 0.1%. AI chipmaker CAMBRICON (688256.SH) -10.740 (-0.846%) fell 0.9%. Domestic GPU makers METAX (688802.SH) -6.980 (-0.990%) and MOORE THREADS (688795.SH) -5.320 (-0.864%) dropped nearly 1% and 0.9%, respectively. LQKJ (688008.SH) -4.150 (-1.755%) slid 1.8%. Optical fibre maker YANGTZE OPTICAL FIBRE (601869.SH) -26.370 (-5.445%) tumbled 5.4%. Memory chipmaker GIGADEVICE (603986.SH) -17.660 (-3.528%) fell 3.5%. (jl/da)(A Shares quote is delayed for at least 15 mins.)</div></div>

02628

399001

601628

603986

06869

601869

Amid escalating US-Iran tensions, China's three major A-share indices dropped 0.6% to 2.3% by midday, with the Shanghai Composite falling below 4,000. Despite the market decline, financial stocks advanced, with CHINA LIFE rising over 4% and banks gaining ground. Conversely, BYD and chip stocks like GIGADEVICE and YANGTZE OPTICAL FIBRE saw significant declines. Macroeconomic data showed May CPI at 1.2% YoY and PPI at 3.9% YoY.

AASTOCKS News

CHINA LIFE

Shenzhen Index

China Life

GIGADEVICE

YOFC

Three Major Indices Drop 0.6% to 2.3% at Midday; CHINA LIFE  Up Over 4%, Banks Advance