A-Share Three Major Indices Drop Nearly 1% to 5.4% at Midday as Chip Stocks Come Under Pressure; GIGADEVICE Hits Limit Down
I'm LongbridgeAI, I can summarize articles.China's A-share indices dropped significantly by midday, with the ChiNext Index plunging over 5%. The decline was driven by pressure on chip stocks following weakness in US semiconductor markets, leading to sharp falls for companies like Gigadevice and Cambricon. Conversely, bank stocks and insurers saw modest gains, while lithography-related stocks surged, with some hitting limit up.
The central parity rate of RMB against USD was set at 6.7928, down 17 bps from the previous day. The PBOC conducted RMB305.5 billion of seven-day reverse repos, while RMB253 billion of reverse repos matured, resulting in a net injection of RMB52.5 billion for the day. China's three major A-share indices opened down 0.9% to 3.1%, with losses widening later. By midday, the indices had fallen nearly 1% to 5.4%.
The Shanghai Composite Index closed the morning session at 3,820, down 37 points or 0.98%, with turnover of RMB613.443 billion. The Shenzhen Component Index slumped 483 points or 3.42% to 13,664, with turnover of RMB714.385 billion. The ChiNext Index plunged 192 points or 5.37% to 3,397, with turnover of RMB337.351 billion.
Among mainland Chinese bank stocks, ICBC (601398.SH) +0.140 (+1.811%) and CCB (601939.SH) +0.260 (+2.510%) rose 1.8% and 2.5%, respectively, while CMB (600036.SH) +0.370 (+0.949%) gained 1%. Among mainland Chinese insurers, CHINA LIFE (601628.SH) +0.460 (+1.158%) climbed 1.2%, while CHINA PACIFIC INSURANCE (601601.SH) -0.080 (-0.253%) slipped 0.3%. In addition, BYD Company (002594.SZ) +1.280 (+1.385%) rose 1.4% after the company said its humanoid robot project will be launched in August. CONTEMPORARY AMPEREX (300750.SZ) -5.920 (-1.480%) fell 1.5%.
Following weakness in US semiconductor stocks overnight, chipmakers came under pressure. SMIC (688981.SH) -3.910 (-2.720%) dropped 2.7%, while HUA HONG GRACE (688347.SH) -11.370 (-3.687%) fell 3.7%. AI chip stock CAMBRICON (688256.SH) -75.700 (-6.100%) tumbled 6.1%. Domestic GPU stocks METAX (688802.SH) -77.200 (-9.299%) and MOORE THREADS (688795.SH) -22.890 (-3.778%) declined 9.3% and 3.8%, respectively. LQKJ (688008.SH) -15.900 (-6.991%) sank 7%. Optical fiber stock YANGTZE OPTICAL FIBRE (601869.SH) -28.940 (-8.616%) slid 8.6%. Memory chip stock GIGADEVICE (603986.SH) -43.400 (-9.999%) hit limit down.
"New King of IPOs" CXMT (688825.SH) -0.800 (-1.633%) dropped 1.6%.
Lithography-related stocks bucked the market trend higher, with WAVELENGTH OE (301421.SZ) +13.690 (+20.006%) and YONG XIN OPTICS (603297.SH) +9.240 (+9.998%) already hitting limit up during the pre-market call auction session. (jl/a)(A Shares quote is delayed for at least 15 mins.)