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Geopolitical Tensions in Middle East Escalate Sharply; A-Share Three Major Indices Open Down 2.2% to 3.5%; HUA HONG (688347.SH) Opens Over 8% Lower
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Geopolitical tensions in the Middle East escalated sharply, with Iran launching missiles at Israel and Israel striking targets ???? Iran. China’s foreign exchange reserves in May increased 0.93% MoM to USD3.4422 trillion, marking the nineteenth consecutive month of gold holdings increases. The RMB central parity against the USD was set at 6.8198, down 41 bps from the previous day. The three major A-share indices opened down 2.2% to 3.5%.

The Shanghai Composite Index opened down 89 points, or 2.2%, at 3,938. The Shenzhen Component Index opened down 479 points, or 3.13%, at 14,835. The ChiNext Index opened down 137 points, or 3.48%, at 3,820.

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Banking stocks saw ICBC (601398.SH) and CCB (601939.SH) both open 0.5% higher. Among insurers, CHINA LIFE (601628.SH) opened up 0.6%, while CHINA PACIFIC INSURANCE (601601.SH) opened down 0.2%. In addition, BYD Company (002594.SZ) opened down 2.2%. CONTEMPORARY AMPEREX (300750.SZ) opened down 1.8%. ZTE (000063.SZ) opened down 2.8%.

Chip stocks were broadly lower. SMIC (688981.SH) opened down 5.8%, while HUA HONG (688347.SH) opened down 8.5%. AI chipmaker CAMBRICON (688256.SH) opened down 4.6%. Domestic GPU makers METAX (688802.SH) and MOORE THREADS (688795.SH) opened down 5.8% and 5.4%, respectively. LQKJ (688008.SH) opened down 7.7%. Optical fibre producer YANGTZE OPTICAL FIBRE (601869.SH) opened down 8.1%. Memory chipmaker GIGADEVICE (603986.SH) opened down 5.5%. (jl/da)
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