Shanghai, January 20, 2026, 08:47 (GMT+8) — Premarket
Moore Threads Technology Co Ltd Class A shares (688795.SS) are set for Tuesday’s Shanghai open after sliding 2.08% to 633.30 yuan in the previous session. On Monday, the stock fluctuated between 632.50 and 649.83 yuan, still far from its 52-week peak of 941.08 yuan—a sign of the volatility since its IPO. (Investing)
China is set to announce its monthly loan prime rates at 9:15 a.m. local time, with a Reuters survey of 22 analysts showing unanimous expectations for no change—holding the one-year LPR at 3.0% and the five-year at 3.5%. The LPR serves as the benchmark for most new loans, while the five-year rate influences mortgage pricing. Any unexpected move here could shake up leveraged trades, especially in high-beta tech stocks. (Reuters)
Regulatory pressure on speculative trading has intensified. Last week, mainland exchanges announced they would raise the minimum margin requirement for new loans from 80% to 100%, effective Jan. 19. This move follows the securities regulator’s promise to clamp down on excessive speculation and boost oversight. (Reuters)
On Monday, sources familiar with the situation said the China Securities Regulatory Commission instructed brokers to pull client-dedicated servers from exchange data centres. The goal: to curb the speed advantage held by high-frequency traders. Shane Oliver, chief economist at AMP, noted, “They do want to keep the markets focused on investment, as opposed to speculation,” adding regulators would prefer “more traders like Warren Buffett” instead of lightning-fast trading tactics. (Reuters)
Macro signals remain unclear. Monday’s data showed China’s economy expanded 4.5% year-on-year in Q4, though sluggish retail sales and weak investment raised questions about how much policy support will arrive in 2026. Frederic Neumann, HSBC’s chief Asia economist, noted, “On the domestic side, we continue to see some headwinds,” and he predicts growth will slow this year. (Reuters)
The central bank has so far focused on targeted support rather than slashing broad policy rates. Last week, the People’s Bank of China trimmed rates on sector-specific tools by 25 basis points and announced it would boost a tech innovation relending programme by 400 billion yuan, bringing it to 1.2 trillion yuan. This move took effect on Jan. 19. Tianchen Xu, senior economist at the Economist Intelligence Unit, said, “After the rate cut on structural tools, it probably won’t take very long to see a full policy rate cut.” (Reuters)
Moore Threads finds itself at the crossroads of policy and regulation because it’s turned into a symbolic trade. The Beijing-based GPU maker pulled in $1.1 billion through its STAR Market IPO and soared over 400% during its Shanghai debut last December. Investors bet on its potential to capitalize on Beijing’s push for chip self-reliance, despite being blacklisted by the U.S. and yet to turn a profit. “A stock cannot defy gravity,” noted William Xin, chairman of Spring Mountain Pu Jiang Investment Management, reflecting on the steep post-IPO rally. (Reuters)
The frenzy isn’t confined to just one player. Reuters reports that onshore IPOs for AI chip companies Moore Threads and peer MetaX (688802.SS) were oversubscribed by thousands of times, despite their shares later retreating from initial peaks. “Access to public funding helps China build a resilient, self-sufficient AI ecosystem,” said Lian Jye Su, chief analyst at tech research firm Omdia. (Reuters)
The downside scenario is gaining traction. Should rate expectations change or trading curbs hit harder than anticipated, the momentum that lifted chip IPOs could reverse sharply—especially in names fueled by heavy borrowing and quick-turn trading.
Traders on Tuesday will see if Moore Threads can hold steady after Monday’s slide, especially once the LPR decision drops at 9:15 a.m. They’ll also be on the lookout for any new enforcement moves targeting margin financing and program trading as the session kicks off.
