Opening data from Zhitong Finance APP shows that on October 26, the Shanghai Composite opened 0.53% lower at 3,671.00 points, the Shenzhen Component opened down 0.97% at 11,560.36 points, and the ChiNext Index opened 1.43% lower at 2,645.74 points.
The STAR 50 opened down 0.89% at 1,333.48 points. As of 9:40, across the Shanghai and Shenzhen markets, 2,652 stocks rose while 2,704 declined, with 221 unchanged, 31 hitting the daily limit up and 12 hitting the limit down, meaning advancers accounted for 47% of the market; combined turnover reached 310.128 billion yuan, an increase of 36.948 billion yuan from the same period last Friday.
The top gainers were motorcycles and other transport equipment, leisure foods, pharmaceutical distribution, oilfield services, medical devices, gas, and shipping ports; on the thematic side, physical AI, helium, and leisure food concepts led the way. The biggest decliners were precious metals, communication equipment, CPO, semiconductors, and computing hardware.
Market Action
The three major indices all opened lower and then diverged. The Shanghai Composite fluctuated upward after the open, touching a high of 3,681.66 points, and as of 9:40 was down 0.27% at 3,680.37 points; the Shenzhen Component fell 1.05% to 11,551.13 points, the ChiNext Index dropped 1.97% to 2,631.28 points, and the STAR 50 slid 1.54% to 1,324.76 points.
The Shanghai Composite has essentially recovered its opening gap, while the Shenzhen Component, ChiNext Index, and STAR 50 all remained below their opening prices, with growth-oriented names falling noticeably more than the main board. In terms of structure, motorcycles and other transport equipment rose 2.88% to lead the Shenwan secondary industries, leisure foods gained 1.86%, professional services added 1.49%, gas climbed 1.45%, and shipping ports advanced 1.39%, closing at the day's high; pharmaceutical distribution, oilfield services, and medical devices also ranked among the top gainers.
On the thematic side, physical AI led with a 3.01% gain, followed by the leisure food concept up 2.35% and the helium concept up 2.32%. Banks rose 0.30%, lending some support to the Shanghai Composite. On the downside, precious metals fell 5.26% to top the decliners, touching an intraday low of 21,756.33 points; communication equipment dropped 3.74%, CPO lost 2.00%, and semiconductors fell 1.83%.
Semiconductors, communication equipment, and CPO, which had gained between 1.9% and 3.3% in the previous session, gave back those gains in a concentrated manner, while the physical AI sector, which had surged 10.50% the prior day, continued to strengthen, showing divergence within the technology space rather than a broad retreat.
Overnight Highlights
1. Overseas markets: On October 23, the three major U.S. indices all closed lower, with the Dow down 1.23%, the S&P 500 down 0.52%, and the Nasdaq down 0.21%, while the Philadelphia Semiconductor Index bucked the trend with a 0.44% gain. Middle East tensions pushed oil prices higher, with December Brent crude futures rising 3.14% to $116.72, a seven-month high; spot gold fell below the $4,000 mark to close at $3,997.79 per ounce.
2. Liquidity: The central bank announced that on October 26 it conducted a 70 billion yuan one-year medium-term lending facility operation using a fixed-quantity, rate-based tender with multiple price levels. Since 90 billion yuan of MLF was maturing this month, this was a reduced rollover with a net withdrawal of 20 billion yuan; combined with an additional 40 billion yuan across two tenors of outright reverse repos, October medium-term liquidity still saw a net injection of 20 billion yuan overall.
3. Index compilation: Revised compilation plans for the Shanghai Composite Index, the Shanghai A-Share Index, the Shanghai Floating Market Index, and the STAR Composite Index, approved by the Shanghai Stock Exchange and China Securities Index Co., took effect the same day, adding a rule that no single constituent may exceed a 15% weight.
4. Industrial policy: The 15th Five-Year Plan for National Informatization was issued, proposing that by 2030 a new-generation communications network be fully built and that sixth-generation mobile communications (6G) commercialization be launched in due course, while deepening large-scale deployment of 5G and gigabit optical networks and advancing 5G-A and 10-gigabit optical network construction. Data from the Ministry of Industry and Information Technology show that from January to September, China's shipbuilding completions, new orders, and order backlog accounted for 63.6%, 81.8%, and 72.4% of the global total, respectively.
Trend Assessment
In the previous session (October 23), the three major indices bottomed and rebounded. The Shanghai Composite hit an intraday low of 3,574.27 points before closing up 0.89% at 3,690.48 points; the Shenzhen Component rose 2.79%, and the ChiNext Index climbed 4.16%. Combined turnover expanded to 1.96 trillion yuan, up about 427.6 billion yuan from the prior day; 4,526 stocks across the market advanced. The robotics concept gained 3.39%, physical AI surged 10.50%, and non-bank financials rose 1.52%; power fell 0.68% and banks dropped 1.30%.
Policy and liquidity arrangements took effect simultaneously today: the central bank's 70 billion yuan one-year MLF operation was implemented the same day, and revised compilation plans for four composite indices including the Shanghai Composite took effect from the same date. Overseas, U.S. stocks closed lower on October 23 and Brent crude topped $116, still posing disturbances. Most brokerages believe the sharp selloff is nearing its end. CITIC Securities believes this round is an "acute-drop bottom" formed by emotional release rather than a "historic bottom," and expects the plunge to end and a rebound recovery to follow; Shenwan Hongyuan, Zheshang, Guosen, and Hua'an all judge that a short-term rebound is reasonable and that a year-end and early-year allocation window has opened. China Merchants Securities is relatively cautious, believing the short term may be dominated by volatile bottoming and structural opportunities. The medium-term direction still awaits verification from third-quarter earnings.
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