On Thursday, the Shanghai Composite Index declined by 0.4% to settle at 3,931, while the Shenzhen Component Index decreased by 0.76% to close at 12,981. Both indices reached their lowest levels in a month, primarily due to investors taking profits from lucrative new energy stocks. Significant declines were observed in companies such as Tianqi Lithium, which dropped by 2%, Guangzhou Tinci Materials by 1.2%, Ganfeng Lithium by 1.9%, and Do-Fluoride New Materials fell sharply by 10%. Contemporary Amperex Technology also experienced a slide, dropping 3%; its shares listed in Hong Kong plummeted by more than 6% as the lock-up period expired, prompting substantial profit-taking activity.
Concurrently, the People's Bank of China maintained its one-year and five-year loan prime rates at 3% and 3.5%, respectively, for the sixth consecutive session, signaling that there are no immediate plans for monetary policy easing. Additionally, reports have emerged that the Chinese government is contemplating new strategies to support the property sector, which is currently under strain. There are rising concerns that further weakening in this area could potentially destabilize the broader financial system.
