Opening data showed that on November 4, the Shanghai Composite Index opened 0.08% lower at 3,605.39 points, while the Shenzhen Component Index opened 0.17% higher at 10,895.80 points. The ChiNext Index opened 0.33% higher at 2,399.46 points, and the STAR 50 opened 0.09% higher at 1,152.34 points.
As of 9:31 a.m., a total of 2,063 stocks in the Shanghai and Shenzhen markets rose, 3,166 fell, and 349 were flat. Sectors leading the gains included precious metals, film and cinema chains, publishing, decoration and renovation, gaming, and minor metals, while large state-owned banks were among the biggest decliners.
Market Overview
The Shanghai Composite opened 0.08% lower, while the Shenzhen Component, ChiNext, and STAR 50 opened 0.17%, 0.33%, and 0.09% higher, respectively. After the open, the Shanghai Composite dipped to 3,599.50 points before rebounding into positive territory, while the ChiNext pulled back slightly from 2,399.46 points, narrowing its gain to 0.05%.
As of 9:31 a.m., the Shanghai Composite was up 0.02% at 3,608.79 points, the Shenzhen Component was up 0.18% at 10,896.39 points, the ChiNext was up 0.05% at 2,392.87 points, and the STAR 50 was up 0.02% at 1,151.46 points.
In terms of sectors, precious metals, film and cinema chains, publishing, decoration and renovation, gaming, and minor metals led the gains, with germanium-gallium concepts and wine concepts also active. Large state-owned banks led the declines, while banks and insurance edged lower, and general equipment was roughly flat.
The precious metals sector had fallen 5.56% over the past five days and 15.17% over the past 20 days, making the strong opening more of an oversold rebound. Overnight, COMEX gold futures fell 0.74% and silver futures dropped 2.12%, providing no directional lead from overseas markets.
Across the Shanghai and Shenzhen markets, 14 stocks hit the daily limit up and 5 hit the limit down, with advancers accounting for 37% of the total. The index edged higher, but more stocks fell than rose.
Overnight News Highlights
U.S. stocks were mixed: the Dow fell 0.38% to 51,786.72 points, the Nasdaq rose 0.83% to 25,372.01 points, and the Philadelphia Semiconductor Index gained 2.63% to 10,600.40 points, with memory and chip stocks rebounding. The 10-year U.S. Treasury yield continued to climb by more than 5 basis points to 4.966%, while the December WTI crude oil contract fell 0.38% to $96.09.
The United States held midterm election voting on the 3rd.
Market Stabilization Measures Intensify
The central bank conducted its third swap facility operation for securities, fund, and insurance companies on the 3rd, worth 100 billion yuan, with 31 securities and fund companies participating in the bidding and a winning rate of 10 basis points. The central bank, together with the National Financial Regulatory Administration and the China Securities Regulatory Commission, clarified on the 2nd that the relending program for stock buybacks and shareholding increases would shift from a temporary arrangement to a long-term institutional arrangement, with the interest rate lowered from 1.25% to 1%. The CSRC said in a press briefing on the evening of the 2nd that it plans to add stocks trading below their issue price as one of the conditions under which market-supportive buybacks can be conducted.
Electronic Fabric Price Increases
In November, 7628 thick fabric was quoted at 14.6 to 14.65 yuan per meter, up 1.5 yuan month-on-month, while E225 yarn was quoted at 71,500 yuan per ton, up 10,500 to 12,500 yuan month-on-month. Manufacturers said they are currently at full production, and the strong outlook for electronic fabric may extend to the end of next year, with cost pressures transmitting downstream through copper-clad laminates and PCBs.
Trend Analysis
On the previous trading day, the Shanghai Composite fell 0.82% to 3,608.10 points, and the ChiNext dropped 2.73%, losing the 2,400-point level, with turnover shrinking to 1.7 trillion yuan. Computing power hardware led the declines, while funds shifted toward lower-position sectors such as food and beverages and agriculture, forestry, and animal husbandry.
On the 4th, the market opened mixed, with precious metals and film and cinema chains showing strength. Overnight, the Nasdaq rose 0.83% and the Philadelphia Semiconductor Index gained 2.63%, which may ease the catch-up decline pressure on A-share computing power chain stocks. However, the 10-year U.S. Treasury yield continued to rise, and constraints on high-valuation growth stocks remain unresolved. Market stabilization tools have shifted toward normalized supply.
Brokerage November strategy focuses on low-position repair: Li Lifeng of Huaxi Securities believes the market has shown excessive adjustment and is in a phase of building a base, with a bottom rebound likely, and recommends using value stocks as a core holding while gradually positioning on dips. Song Jin of Nomura Orient International Securities believes continued ETF inflows are expected to ease market pressure, but recommends maintaining a relatively defensive portfolio until volatility decreases. The overall allocation approach is shifting from defensive toward balancing offense and defense, and whether the market can form a sustained rebound still depends on incremental capital inflows.
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