A-Share Three Major Indices Gain 0.7%-1.4% at Midday; HUA HONG GRACE Surges Over 9%, SMIC Up 3%

The central parity rate of RMB against USD was set at 6.7829, up 23 bps from the previous day. The PBOC conducted RMB239.5 billion of seven-day reverse repos today (26th), while no reverse repos matured, resulting in a net injection of RMB239.5 billion in a single day.

The three major A-share indices opened mixed before all turning higher, gaining 0.7% to 1.4% by midday. The Shanghai Composite Index reclaimed the 3,900 level, rising 27 points or 0.7% to 3,916, with turnover of RMB580.869 billion. The Shenzhen Component Index rose 165 points or 1.2% to 13,911, with turnover of RMB650.036 billion. The ChiNext Index gained 46 points or 1.37% to 3,444, with turnover of RMB305.909 billion.

Among Chinese bank stocks, ICBC (601398.SH) -0.020 (-0.253%) and CCB (601939.SH) -0.060 (-0.563%) fell 0.3% and 0.6%, while CMB (600036.SH) +0.160 (+0.405%) rose 0.4%. Among Chinese insurers, CHINA LIFE (601628.SH) +0.580 (+1.543%) gained 1.5% and CHINA PACIFIC INSURANCE (601601.SH) +0.280 (+0.889%) added 0.9%. PING AN OF CHINA (601318.SH) +0.710 (+1.291%) rose 1.3%. In addition, BYD Company (002594.SZ) +0.990 (+1.084%) gained 1.1%. CONTEMPORARY AMPEREX (300750.SZ) +6.320 (+1.678%) rose 1.7% after the proposed acceptance announcement for the environmental impact report of its Jianxiawo lithium mining project was revoked.

Among chip stocks, SMIC (688981.SH) +3.890 (+3.242%) rose 3.2%. HUA HONG GRACE (688347.SH) +21.440 (+9.463%) surged 9.5%. AI chip stock CAMBRICON (688256.SH) +22.370 (+2.214%) gained 2.2%. Domestic GPU stocks METAX (688802.SH) +10.750 (+1.641%) and MOORE THREADS (688795.SH) +1.820 (+0.342%) rose 1.6% and 0.3%, respectively. LQKJ (688008.SH) +5.500 (+2.829%) gained 2.8%. Optical fiber stock YANGTZE OPTICAL FIBRE (601869.SH) +13.360 (+3.387%) rose 3.4%. Memory chip stock GIGADEVICE (603986.SH) +0.490 (+0.124%) edged up 0.1%. SEMIGHT INSTRUMENTS (688808.SH) +42.000 (+1.901%) rose 1.9%, while CXMT (688825.SH) +0.110 (+0.195%) gained 0.2%.

Among the three major optical module players known as "Yi Zhong Tian", ZHONGJI INNOLIGHT (300308.SZ) +14.990 (+1.772%) rose 1.8%; TFC (300394.SZ) -2.090 (-0.813%) fell 0.8%; and EOPTOLINK (300502.SZ) +4.400 (+1.098%) gained 1.1%.

YUSHU TECHNOLOGY (688836.SH) +8.200 (+1.360%) rose 1.4%. (jl/da)(A Shares quote is delayed for at least 15 mins.)