<div id="readability-page-1"><div>The People's Bank of China (PBOC) kept the Loan Prime Rate (LPR) unchanged for the 12th consecutive month. The one-year and five-year LPR for May stood at 3% and 3.5%, respectively. The RMB central parity against the USD was set at 6.8397, down 22 pips MoM. Today (20th), the PBOC conducted RMB50 billion of seven-day reverse repos in the open market, with the operation rate unchanged at 1.4%. With RMB500 million of reverse repos maturing, the single-day net injection totaled RMB49.5 billion. The three major A-share indices opened 0.4% to 0.5% lower.The Shanghai Composite Index opened down 16 points, or 0.4%, at 4,152. The Shenzhen Component Index opened down 82 points, or 0.5%, at 15,487. The ChiNext Index opened down 18 points, or 0.5%, at 3,889.Among financials, ICBC (601398.SH) -0.040 (-0.551%) and CCB (601939.SH) -0.040 (-0.403%) opened flat. CHINA LIFE (601628.SH) -0.180 (-0.519%) opened down 0.3%, while CHINA PACIFIC INSURANCE (601601.SH) -0.370 (-1.098%) fell 0.7% at the open. BYD Company (002594.SZ) -1.580 (-1.646%) opened down 0.7%, and CONTEMPORARY AMPEREX (300750.SZ) -2.770 (-0.663%) slipped 0.2%.A-share &#34;new stock king&#34; SEMIGHT INSTRUMENTS (688808.SH) +100.040 (+7.146%) edged down less than 0.1% to RMB1,399. KWEICHOW MOUTAI (600519.SH) -0.320 (-0.024%) opened down 0.3% at RMB1,321.Chip stocks were broadly weaker. SMIC (688981.SH) +5.180 (+4.360%) opened down 0.7%, and HUA HONG (688347.SH) +5.760 (+3.847%) fell 1%.AI chip maker CAMBRICON (688256.SH) +45.730 (+3.466%) opened down 1.5%. Domestic GPU makers METAX (688802.SH) +46.090 (+6.122%) and MOORE THREADS (688795.SH) +11.860 (+1.656%) opened down 2% and 1.3%, respectively. LQKJ (688008.SH) +7.160 (+2.897%) was broadly flat. Optical fibre maker YANGTZE OPTICAL FIBRE (601869.SH) -1.600 (-0.402%) opened down 0.3%, while memory chip firm GIGADEVICE (603986.SH) +31.020 (+7.668%) opened up 0.9%. (jl/da)(A Shares quote is delayed for at least 15 mins.)</div></div>

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The Shanghai and Shenzhen markets opened 0.4%-0.5% lower, with the Shanghai Composite Index down 16 points at 4,152. The People's Bank of China maintained the Loan Prime Rate unchanged for the 12th month. Chip stocks faced pressure, with notable declines in SMIC and HUA HONG. The RMB central parity against the USD was set at 6.8397, down 22 pips MoM. A total of RMB49.5 billion was injected through reverse repos today.

Shanghai and Shenzhen Markets Open 0.4%-0.5% Lower; Chip Stocks Under Pressure