A-Shares Close: Shanghai Index Reclaims 4,000 Points as Tech Stocks Surge; Cambricon Outperforms Moutai Again

The market opened higher and extended gains today, with the Shanghai Composite Index climbing back above the 4,000-point mark. The "four forces" of AI—computing power, transport power, storage power, and power supply—led a broad rally in tech stocks. Additionally, the phosphorus chemical sector remained strong throughout the session. Total market turnover exceeded 2 trillion yuan, up from the previous trading day, with over 2,800 stocks advancing. Both A-shares and Hong Kong stocks notably outperformed global markets.

Chip stocks stole the spotlight, with industry leaders like **Cambricon Technologies Corporation Limited (688256)** and Hygon Information surging, driving the STAR 50 Index up over 3%. Analysts attribute the domestic chip sector’s breakout to two key factors amid growing skepticism about AI valuations. First, Advanced Micro Devices (AMD) CEO Lisa Su hinted during an earnings call that its Instinct MI308 AI chip had secured an export license to China, boosting Hygon—a major AMD-linked stock since their 2016 partnership. Second, market chatter about data center construction and domestic chip substitution has strengthened the sector’s appeal.

The phosphorus chemical sector also shone, with Qingshuiyuan hitting a 20% limit-up and Chengxing Potash, Batian Holdings, among others, also rallying. Yuntianhua and Sichuan Jinluo followed suit. Industry data showed the yellow phosphorus index rose 4% on November 4, up 7% over two weeks, driven by wet-process phosphate plant shutdowns and recovering demand for electrolyte materials. Seasonal fertilizer demand and improved earnings further supported the sector, with Q1–Q3 net profits up 21.42% year-on-year to 3.005 billion yuan.

Other highlights included industrial metals, led by aluminum (Nanshan Aluminum hitting limit-up), nuclear fusion (Hailu Heavy Industries sealing a fourth straight涨停), and humanoid robotics (Fangzheng Motors surging post-lunch). Conversely, yesterday’s hot themes like Fujian local stocks and Hainan Free Trade Port retreated, with Dalian Sunasia touching跌停.

Dongguan Securities noted that while AI-driven capex expansion raises short-term doubts, the tech growth narrative remains intact long-term. At the close, the Shanghai Composite rose 0.97% to 4,007.76 points (930.3 billion yuan turnover), the Shenzhen Component gained 1.73% to 13,452.42 points (1.125 trillion yuan), and the ChiNext Index climbed 1.84% to 3,224.62 points.

**Fund Flows**: Main capital favored semiconductors, components, and auto parts, with top inflows seen in Shenghong Tech, Dongshan Precision, Sugon, and Hygon.

**Key Updates**: 1. *Polysilicon M&A*: Sources revealed a 70-billion-yuan “debt-assumed” acquisition plan for a polysilicon platform is under discussion, led by industry giants including GCL Group. 2. *Nexperia*: The Dutch chipmaker welcomed eased U.S. export curbs but denied reports of former CEO Zhang Xuezheng’s return. 3. *Industrial 5G*: The IEC released the first global standard for industrial 5G, co-developed by China and Germany, accelerating smart manufacturing.

**Outlook**: - **Cinda Securities** expects a style shift toward undervalued sectors like banks, non-bank finance, and cyclical plays (steel, coal). - **Industrial Securities** predicts year-end balance between tech growth and cyclical recovery themes. - **Huaxi Securities** sees sustained tech momentum but warns of rotation amid ample liquidity (evidenced by trading volume and fund positioning).