Event: On October 23, A-shares opened lower and moved down in morning trading, with the three major indices once falling 1% to 3% during the session, before rebounding quickly in the afternoon and turning positive across the board.
By the close, the Shanghai Composite Index rose 0.89% to 3,690.48 points, the Shenzhen Component Index gained 2.79% to 11,673.83 points, the ChiNext Index climbed 4.16% to 2,684.10 points, and the STAR 50 Index advanced 3.04% to 1,345.51 points.
Turnover in the Shanghai and Shenzhen markets reached 1.96 trillion yuan, an increase of 427.6 billion yuan from the previous trading day; 4,526 stocks across the market rose, showing a clear broad-based gain pattern.
By sector, humanoid robots, physical AI, software, fintech, semiconductors and recently listed sub-new stocks led the gains, while low-valuation defensive sectors such as banks and power moved against the trend and weakened.
Market commentary: The session showed clear high-low switching characteristics: in the morning, growth sectors fell quickly at one point, dragged down by volatility in overseas AI assets and pullbacks in computing hardware and precious metals; in the afternoon, as catalysts across the robotics and physical AI industrial chains were released in a concentrated manner, market sentiment recovered rapidly.
On the news front, an overseas leader gave a clear timetable for mass production and external delivery of humanoid robots at its latest earnings meeting, and judged that the embodied intelligence track will have a market space larger than existing consumer electronics. Combined with an overseas AI company entering the robotics field, this drove expectations higher for segments such as actuators, reducers and sensors.
On the liquidity side, the central bank conducted 258 billion yuan of overnight reverse repos that day and made zero injections through 7-day reverse repos, keeping month-end funding conditions stable; several broad-based ETFs saw significant increases in volume, with the ChiNext ETF's single-day turnover hitting a nearly two-year high, making it relatively clear that incremental funds are positioning through ETFs.
In addition, the Ministry of Commerce disclosed that service retail sales in the first three quarters grew 5% year on year, faster than goods retail, and consumer-related sectors such as retail showed localized activity.
We believe today's V-shaped reversal was more a repair of sentiment and funding conditions, but the market structure is undergoing positive changes.
Against the backdrop of continued disturbances in external liquidity and increased volatility in AI assets, funds have begun to spread from crowded computing hardware toward directions such as robotics and physical AI that have expectations for industrial implementation. At the same time, incremental funds represented by broad-based ETFs continued to absorb supply at low index levels, indicating that the downside risk for A-shares may already have been priced in fairly fully.
In the short term, the index may still need to fluctuate to digest third-quarter earnings and overseas interest rate meeting disturbances, but the style pattern in which growth outperforms may be re-establishing itself.
Allocation suggestions: Looking ahead, we maintain our medium-term optimistic view on the technology growth main line, focusing on the humanoid robotics and embodied intelligence industrial chain, physical AI and software applications, and domestic substitution opportunities in semiconductor equipment and materials; within the high-end manufacturing sector, leading names with the ability to realize orders and earnings are also suitable for buying on dips.
At the same time, a barbell allocation approach can be referenced, balancing defensive sectors represented by smart banking.
A MACD golden cross signal has formed, and these stocks are performing well!
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