Market performance data for June 4th shows mixed results across major indices. The Shanghai Composite Index closed down 0.64% at 4057.78 points. The Shenzhen Component Index declined 0.27% to 15561.57 points, and the ChiNext Index fell 0.83% to 4088.88 points.
In the United States, the three major stock indices finished with divergent movements. The Dow Jones Industrial Average rose by 874.86 points, or 1.73%, closing at a record high of 51561.93. The S&P 500 gained 30.63 points, or 0.41%, ending at 7584.31. Conversely, the Nasdaq Composite Index edged down 23.02 points, or 0.09%, to settle at 26830.96.
International oil prices saw a significant drop. The July delivery contract for West Texas Intermediate crude on the New York Mercantile Exchange fell by $2.98, or 3.10%, to settle at $93.04 per barrel. The August delivery contract for Brent crude on the London ICE Futures Europe exchange decreased by $2.78, or 2.84%, closing at $95.03 per barrel.
Key Financial Developments
On June 4th, the People's Bank of China announced a 500 billion yuan three-month (92-day) reverse repurchase operation via a fixed-quantity, interest-rate tender for June 5th. This move aims to maintain sufficient banking system liquidity. With 800 billion yuan in similar three-month reverse repos maturing in June, this operation will result in a net withdrawal of 300 billion yuan, marking the fourth consecutive month of net withdrawals for such instruments.
At a regular press conference, a spokesperson for the Ministry of Commerce stated that the United States' persistent abuse of export controls under the guise of national security has severely harmed the legitimate rights and interests of Chinese enterprises, disrupted international economic and trade order, and significantly impacted the stability of the global semiconductor industry and supply chains. China consistently opposes such actions and urges the U.S. to promptly correct its erroneous practices, cease discriminatory measures, and safeguard the stability of global industrial and supply chains.
Effective from 24:00 on June 4th, domestic refined oil product prices were adjusted downward. Based on monitoring by the National Development and Reform Commission, international oil prices fluctuated during the pricing cycle. The retail prices for gasoline and diesel were reduced by 525 yuan and 505 yuan per ton, respectively. On average nationwide, the prices for 92-octane gasoline, 95-octane gasoline, and 0-diesel decreased by 0.41 yuan, 0.44 yuan, and 0.43 yuan per liter.
State Grid Corporation of China estimates that the peak electricity load within its operating regions this summer will exceed 1.3 billion kilowatts, representing a year-on-year increase of approximately 6%. To ensure grid security and reliable power supply, the company is accelerating capacity-building initiatives, improving market-based electricity trading mechanisms to promote efficient utilization of clean energy, and expediting 168 key projects for the summer peak demand period.
The Ministry of Industry and Information Technology has initiated a pilot program for coordinated ministry-province action on 6G innovation and development. The goal by 2029 is to stimulate innovation at local and enterprise levels, develop a range of independently innovative 6G technical solutions, cultivate promising new business application scenarios, and foster a variety of new terminal products, thereby providing strong support for future 6G commercialization.
The Shanghai Stock Exchange has issued a notice to securities firms, reinforcing the management of trading business units. It requires brokerages to immediately commence comprehensive self-inspections and rectify any non-compliant existing configurations within three months. The exchange mandates fair allocation of trading unit resources to protect investor rights, particularly for retail investors, and prohibits providing special conveniences to select clients. Firms are instructed to ensure an orderly rectification process and prioritize using cleared trading unit capacity to enhance the trading experience for general investors.
E Fund Management has surpassed ChinaAMC to become the largest ETF manager by assets under management. Wind data shows that as of June 3rd, E Fund's ETF AUM reached 618.519 billion yuan, exceeding ChinaAMC's 616.613 billion yuan for the first time.
Futu Holdings announced adjustments to its services for existing mainland China-based investors to comply with regulatory requirements during a two-year industry consolidation period. Effective June 12, 2026 (Beijing Time), two main changes will take effect: firstly, the purchase (opening) of all securities, including stocks, will be suspended for mainland clients, though selling (closing) positions will remain unaffected; secondly, fund deposit services for mainland clients will be suspended.
U.S. stock indices showed a split performance on June 4th, with the Dow Jones reaching a new closing record while the Nasdaq closed slightly lower. Semiconductor stocks faced broad pressure, with the Philadelphia Semiconductor Index dropping 2.15%, weighing on the Nasdaq. Broadcom shares plunged over 12%, leading the decline among major components after its fiscal Q2 2026 results and AI guidance for the next quarter disappointed the market. Micron Technology fell more than 7%, ARM dropped over 4%, Advanced Micro Devices declined more than 3%, and Qualcomm shed over 2%. In contrast, NVIDIA shares rose nearly 2%, Marvell Technology gained over 4%, and Taiwan Semiconductor Manufacturing Company advanced more than 1%.
A report from the World Economic Forum indicates that geopolitical fragmentation is accelerating in 2025 and 2026 due to geopolitical tensions, economic security concerns, and shifting trade relations among major economies. This fragmentation is projected to cost the global economy between $213 billion and $307 billion annually. The report notes that rising tariffs, investment restrictions, and retaliatory measures are increasingly impacting traditional economies, including the U.S., EU, Canada, Japan, and South Korea, raising business costs and increasing uncertainty for cross-border investment. If fragmentation worsens further, the potential global economic loss could reach $6.9 trillion, equivalent to 6.4% of global GDP.
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