SH Comp Ends Midday Down 1 Pt, ChiNext Index Gains Over 1.4%; Commercial Aerospace Concept Stocks Under Pressure

The PBOC recently issued the "People's Bank of China 15th Five-Year Reform and Development Plan" and rolled out nine supporting action plans covering related sub-sectors. The documents mentioned maintaining the RMB exchange rate basically stable at a reasonable and balanced level, and promoting high-quality development of the bond market's "technology board".

The RMB central parity against the USD was set at 6.7900, down 16 bps MoM. The PBOC did not conduct seven-day reverse repos today (11th), while RMB46.5 billion of reverse repos matured, resulting in a net daily liquidity withdrawal of RMB46.5 billion. The three major A-share indices opened down 0.1%-0.4% this morning and traded mixed by midday.

The Shanghai Composite Index closed the morning session at 3,964, down 1 point or 0.05%, with turnover of RMB692.474 billion. The Shenzhen Component Index gained 93 points or 0.65% to 14,410, with turnover of RMB826.881 billion. The ChiNext Index rose 50 points or 1.41% to 3,587, with turnover of RMB395.969 billion.

According to foreign media reports, mainland Chinese brokerages are strengthening reviews of new trading accounts and tightening assessments related to margin financing, securities lending and options trading. In response, CITIC Securities (600030.SH) -0.050 (-0.179%) and EAST MONEY (300059.SZ) -0.050 (-0.250%) said their compliance requirements for margin financing and derivatives businesses have always been strict and standardized, and there is no so-called "tightening". The related businesses have consistently operated smoothly under the regulatory framework. CITIC Securities (600030.SH) -0.050 (-0.179%) and EAST MONEY (300059.SZ) -0.050 (-0.250%) each fell 0.2% and 0.3%.

The launch mission of the modified Long March-7 carrier rocket failed, while reports said the launch of LandSpace's Zhuque-3 Y2 carrier rocket has been postponed. Commercial aerospace concept stocks came under pressure, with SIRUI ADVANCED MATERIALS (688102.SH) -3.710 (-9.634%) slumping more than 9.6% and CHINA SPACESAT (600118.SH) -4.710 (-6.813%) falling 6.8%.

Among mainland Chinese bank stocks, ICBC (601398.SH) -0.010 (-0.133%) fell 0.1%, CCB (601939.SH) +0.040 (+0.395%) rose 0.4%, and CMB (600036.SH) -0.060 (-0.154%) slipped 0.2%. Among mainland Chinese insurers, CHINA LIFE (601628.SH) -0.390 (-1.034%) declined 1% and CHINA PACIFIC INSURANCE (601601.SH) -0.260 (-0.840%) lost 0.8%. In addition, BYD Company (002594.SZ) -0.750 (-0.823%) dropped 0.8%, while CONTEMPORARY AMPEREX (300750.SZ) +0.170 (+0.043%) edged up 0.04%.

Among chip stocks, SMIC (688981.SH) +0.770 (+0.610%) rose 0.6% and HUA HONG GRACE (688347.SH) +1.330 (+0.504%) added 0.5%. AI chip stock CAMBRICON (688256.SH) -14.010 (-1.246%) fell 1.3%. Domestic GPU stocks METAX (688802.SH) +1.490 (+0.208%) and MOORE THREADS (688795.SH) +1.720 (+0.300%) gained 0.2% and 0.3%, respectively. LQKJ (688008.SH) +4.590 (+2.218%) climbed 2.2%. Optical fibre stock YANGTZE OPTICAL FIBRE (601869.SH) -3.670 (-1.070%) fell 1.1%. Memory chip stock GIGADEVICE (603986.SH) +6.560 (+1.628%) rose 1.6% after the company invested USD100 million to subscribe for a 25% stake in a private equity fund. SEMIGHT INSTRUMENTS (688808.SH) -55.000 (-2.571%) dropped 2.6%.

Among the three major optical module companies known as "Yi Zhong Tian", ZHONGJI INNOLIGHT (300308.SZ) +23.400 (+2.707%) rose 2.7%, while TFC (300394.SZ) +2.820 (+1.264%) and EOPTOLINK (300502.SZ) +16.380 (+4.099%) gained 1.3% and 4.1%, respectively.

Meanwhile, CXMT (688825.SH) -0.510 (-0.994%) fell nearly 1%. KUNLUN (300418.SZ) -0.320 (-0.723%) is planning an H-share main board listing, with its stock price falling 0.7%. Reports said EVE ENERGY (300014.SZ) +1.140 (+2.064%) will raise prices for two categories of battery products starting next month, sending its shares up 2.1%. (jl/u)(A Shares quote is delayed for at least 15 mins.)