The three major indices of the Shanghai and Shenzhen A-shares fell by 1.1%-2.1% throughout the day, with domestic property stocks stabilizing and photovoltaic stocks under pressure

The central parity rate of the RMB against the US dollar was raised by 54 points to 7.0602 per US dollar, reaching a high not seen in over 14 months. In the afternoon, the offshore RMB exchange rate against the US dollar broke 7.04 again, peaking at 7.03725 during the day, a new high since October 4, 2024. The onshore RMB exchange rate against the US dollar also rose to a maximum of 7.0417 during the day, marking a new high since October 8, 2024.

The People's Bank of China today (16th) conducted a seven-day reverse repurchase operation in the open market amounting to 135.3 billion RMB (the same below), with the operation rate remaining at 1.4%. Today, 117.3 billion RMB of reverse repos matured, resulting in a net injection of 18 billion RMB for the day.

The three major A-share indices opened lower and continued to decline. The Shanghai Composite Index closed down 43 points or 1.1% at 3,824 points, with a turnover of 733.3 billion RMB. The Shenzhen Component Index closed down 197 points or 1.5% at 12,914 points, with a turnover of 990.9 billion RMB. The ChiNext Index closed down 66 points or 2.1% at 3,071 points, with a turnover of 446.2 billion RMB.

Banking stocks were soft, with Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) falling by 0.3% and 0.5%, respectively. In addition, CATL (300750.SZ) and BYD (002594.SZ) dropped by 1.8% and 1.3%, respectively.

Leading domestic property stocks stabilized, with China Fortune Land Development (600340.SH), Gemdale Corporation (600383.SH), and Vanke A (000002.SZ) rising by 1.6%-2.6%.

Gold-related stocks fell, with Zijin Mining (601899.SH), Shandong Gold (600547.SH), Zhongjin Gold (600489.SH), and Chifeng Jilong Gold Mining (600988.SH) declining by 3.5%-5.5%.

Leading domestic chip stocks declined, with SMIC (688981.SH) and Hua Hong Semiconductor (688347.SH) falling by 2% and 3%, respectively. Cambrian (688256.SH) plans to use 2.778 billion RMB of capital reserves to cover losses, and the company's stock price fell by 4.4%. Moore Threads (688795.SH) dropped by 7.1%. ZTE Corporation (000063.SZ) fell by 2.9%.

Photovoltaic-related stocks were under pressure, with Risen Energy (300118.SZ) dropping by 11.4%. Zhongli Group (002309.SZ) fell by 10%