The three major A-share indices of the Shanghai and Shenzhen stock exchanges fell by 0.5% to 1.8% in the first half of the day, with chip stocks declining while shipping and innovative pharmaceutical concept stocks continued to rise

The central parity rate of the RMB against the US dollar is reported at 6.8880, an increase of 145 points from the previous day. The People's Bank of China today (2nd) conducted a 500 million RMB (same below) seven-day reverse repurchase operation in the open market, with the operation rate remaining at 1.4%. Today, 224 billion RMB of reverse repos are maturing, resulting in a net withdrawal of 223.5 billion RMB for the day.

The conflict between the US and Iran is not over, and the geopolitical situation remains unstable. US President Trump stated in a televised address regarding Iran that "extremely severe" actions will be taken against Iran in the coming weeks.

The three major indices of A-shares opened lower and continued to decline, with the Shanghai Composite Index closing at 3,927 points, down 20 points or 0.5%, with a turnover of 516.5 billion RMB; the Shenzhen Component Index closed at 13,548 points, down 158 points or 1.2%, with a turnover of 670.2 billion RMB; the ChiNext Index closed at 3,189 points, down 57 points or 1.8%, with a turnover of 294 billion RMB.

Domestic bank stocks performed well against the market trend, with Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) rising by 1% and 1.4%, respectively. In addition, Contemporary Amperex Technology Co., Limited (300750.SZ) fell by 0.6%. BYD (002594.SZ) dropped by 1.1%.

International oil prices remain high, with PetroChina (601857.SH) and CNOOC (600938.SH) rising by 0.9% and 1%, respectively. Among oil and gas stocks, Menergy (603619.SH) rose by 4.8%. Shandong Molong (002490.SZ) also increased by 2%.

Shipping stocks continued to strengthen, with China Merchants Energy Shipping Company (601872.SH) and China Merchants Jinling Shipyard (601975.SH) rising by 8.7% and 8.2%, respectively.

Chip stocks declined, with SMIC (688981.SH) A-shares falling by 2.7%. Hua Hong (688347.SH) A-shares dropped by 3.4%. AI chip stock Cambricon (688256.SH) also fell by 4.5%. Domestic GPU stocks Muxi Co., Ltd. (688802.SH) and Moore Threads (688795.SH) fell by 4% and 2.7%, respectively.

Some lithium mining concept stocks rebounded against the market trend, with Chuaneng Power (000155.SZ) hitting the daily limit. Tibet Mining (000762.SZ) rose by 9.3%.

Innovative drug concept stocks continued to rise, with Peking University Pharmaceutical (000788.SZ) hitting the daily limit. Antengene (002940.SZ) and Rundu Co., Ltd. (002923.SZ) rose by 4.9% and 2.3%, respectively