SHENZHEN, Feb 28, 2026, 14:37 (GMT+8) — Market closed
- The Shenzhen Component Index edged down 0.06% to finish at 14,495.09 on Friday. The ChiNext growth board dropped more sharply, losing 1.04%.
- The Shenzhen benchmark managed a weekly gain of roughly 1.4%. ChiNext, on the other hand, barely budged.
- Investors have their eyes on a March 2 FX rule tweak, with official PMI figures set for March 4, and China’s “two sessions” kicking off March 4-5.
Shenzhen’s main index slipped Friday, with the Shenzhen Component Index giving up 0.06% to close at 14,495.09. The ChiNext Index, which tracks growth stocks in a Nasdaq-like fashion, dropped 1.04%. Minor metals, along with lead and zinc names, posted the strongest gains, while papermakers and electronic chemical shares lagged behind. Combined turnover in Shanghai and Shenzhen hit almost 2.49 trillion yuan.
The Shenzhen Component added roughly 1.4% for the week ended Feb. 27, measured from closing prices. ChiNext, after a midweek pop, gave back gains and ended up flat by Friday’s close.
Mainland markets are closed for the weekend, so attention shifts to Beijing’s annual “two sessions” — major political gatherings set for March 4-5 — along with a string of official data releases that could influence A-share positioning ahead of the upcoming move. State Council of China
The People’s Bank of China has moved quickly, dropping the 20% risk reserve requirement for FX forwards effective March 2 — a policy tweak that makes dollar forwards cheaper and aims to tamp down the yuan’s sharp climb. “It means the PBOC is intervening as the yuan’s appreciation is too fast,” Yuan Tao, an analyst at Orient Futures, told Reuters. Reuters
Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating, told Reuters the move “sends a clear policy signal” aimed at curbing “excessive yuan appreciation”—something listed exporters have raised as a concern heading into annual reporting season. Reuters
JPMorgan stepped out of offshore yuan trades following the policy change, shutting down its long CNH position. The bank cautioned that the central bank’s timing pointed to unease over how quickly the rally unfolded, according to a note reviewed by Reuters.
Shenzhen’s market, heavy on manufacturers, exporters, and high-growth stocks, is especially sensitive to currency moves—margins, hedging expenses, and forward guidance can all shift fast. The FX picture also weighed on mood surrounding the ChiNext board, which was Friday’s main laggard.
Still, there’s a risk here: Friday’s market showed strength in metals while growth stocks lagged. That could tip into broader de-risking if global tech anxiety intensifies and bleeds into local trades — or if investors start seeing the policy outlook as a headwind instead of a cushion.
Traders are eyeing the PBOC’s FX action to see if it steadies the yuan without rattling liquidity or triggering a bigger tilt toward defensives. If commodity-linked trades snap back more sharply, that could put the week’s gains by minor metals to the test.
Coming up fast: the PBOC’s FX forward reserve cut kicks in on Monday, March 2. Then it’s official February PMI data and the launch of the CPPCC meeting on March 4, with the National People’s Congress opening the very next day, March 5.
