A-Share Three Major Indices Gain 0.9%-1.6% at Midday; ZHONGJI INNOLIGHT Slumps Over 7%, HUA HONG GRACE Surges 8%
Complete. Here is the key summaryChina's A-share indices rose 0.9%-1.6% by midday, recovering from early losses. The Shanghai Composite gained 1.34%, while the Shenzhen Component and ChiNext rose 1.56% and 0.89% respectively. Macro data showed July PMI figures below expectations, and the RMB strengthened against the USD. Sector performance varied: chip stocks surged, with Hua Hong Grace up 8% and SMIC up 4.2%, driven by US import ban concerns benefiting domestic alternatives. Conversely, optical module giant Zhongji Innolight plunged 7.6% on the same trade restriction news. Bank stocks dipped slightly.
China's July RatingDog Services PMI fell to 50.4, below expectations, while the Composite PMI dropped to 50.8. The central parity rate of RMB against USD was set at 6.7889, hitting a nearly three-and-a-half-year high, up 28 bps from the previous day. The PBOC conducted RMB5 billion seven-day reverse repo operations at an unchanged operation rate of 1.4%, while RMB206.5 billion of reverse repos matured, resulting in a net daily withdrawal of RMB201.5 billion. China's three major A-share indices opened down 0.2% to 3.4% today (5th) before rebounding collectively, rising 0.9% to 1.6% by midday.
The Shanghai Composite Index closed the morning session at 3,873, up 51 points or 1.34%, with turnover of RMB765.15 billion. The Shenzhen Component Index rose 216 points or 1.56% to 14,101, with turnover of RMB924.554 billion. The ChiNext Index gained 30 points or 0.89% to 3,519, with turnover of RMB459.12 billion.
Among Chinese bank stocks, ICBC (601398.SH) -0.130 (-1.697%) and CCB (601939.SH) -0.190 (-1.881%) each fell 1.7% and 1.9%, while CMB (600036.SH) -0.380 (-0.967%) dropped nearly 1%. Among Chinese insurers, CHINA LIFE (601628.SH) +0.230 (+0.611%) rose 0.6%, while CHINA PACIFIC INSURANCE (601601.SH) +0.080 (+0.252%) added 0.3%. In addition, BYD Company (002594.SZ) -0.520 (-0.570%) slipped 0.6%. CONTEMPORARY AMPEREX (300750.SZ) +9.300 (+2.354%) climbed 2.4%.
Amid reports that the US plans to ban imports of Chinese data center components, optical module giant ZHONGJI INNOLIGHT (300308.SZ) -78.130 (-7.645%) plunged 7.6%, while TFC (300394.SZ) -1.700 (-0.802%) and EOPTOLINK (300502.SZ) -25.570 (-5.708%) fell 0.8% and 5.7%, respectively.
Among chip stocks, SMIC (688981.SH) +5.090 (+4.203%) rose 4.2%, while HUA HONG GRACE (688347.SH) +19.050 (+8.040%) surged 8%. AI chip stock CAMBRICON (688256.SH) +58.830 (+5.456%) climbed 5.5%. Domestic GPU stocks METAX (688802.SH) +34.970 (+5.024%) and MOORE THREADS (688795.SH) +17.260 (+2.993%) gained 5% and nearly 3%, respectively. LQKJ (688008.SH) +10.250 (+5.043%) advanced 5%. Optical fibre stock YANGTZE OPTICAL FIBRE (601869.SH) +25.880 (+9.113%) jumped 9.1%. Memory chip stock GIGADEVICE (603986.SH) +25.080 (+7.045%) rose 7%. SEMIGHT INSTRUMENTS (688808.SH) -2.800 (-0.144%) edged down 0.1%.
CXMT (688825.SH) -0.300 (-0.545%) fell 0.6%.
The State Post Bureau launched an investigation into STO (002468.SZ) -0.450 (-3.142%) , sending its share price down 3.1%. (jl/u)(A Shares quote is delayed for at least 15 mins.)