On October 27, the Shanghai Composite Index came within a whisker of the 4,000-point mark, hitting an intraday high of 3,999.07 points. The A-share market continued its bullish momentum, with trading volume exceeding 2 trillion yuan for the day. The index's surge reflects the ongoing "tech-driven bull market," characterized by broad gains in technology stocks and accelerated IPO approvals.
The three major A-share indices opened higher on October 27. The Shanghai Composite Index maintained an upward trajectory throughout the day, nearing the psychologically significant 4,000-point level and setting a new decade-high. Meanwhile, the Shenzhen Component Index and the ChiNext Index fluctuated within a narrow range. By the close, the indices rose 1.18%, 1.51%, and 1.98%, respectively, settling at 3,996.94, 13,489.4, and 3,234.45 points.
Sectors such as high-bandwidth memory and storage chips led the gains, with Jiangbolong surging over 19%, while Dawei Co. and GigaDevice among others hit the daily limit-up. Trading activity remained robust, with combined turnover across Shanghai, Shenzhen, and Beijing exchanges reaching approximately 2.36 trillion yuan, up significantly from the previous session. Among individual stocks, 3,361 advanced, including 63 limit-up, while 1,862 declined, with 15 limit-down.
Since the "9.24" rally last year, the A-share market has trended upward, with October witnessing accelerated volatility. Yang Delong, Chief Economist at Qianhai Kaiyuan Fund, attributed the recent rally to multiple factors: the rollout of the "15th Five-Year Plan" emphasizing new productive forces, expectations of Fed rate cuts boosting sentiment, and a shift of household savings into capital markets fueling liquidity.
Looking ahead, CITIC Securities noted that with key domestic and international uncertainties easing—such as the conclusion of the Fourth Plenum and resumed Sino-U.S. trade talks—the market is likely to refocus on earnings-driven dynamics. The "tech bull" theme has gained further traction, with the STAR 50 Index climbing 50.08% over 196 trading days since January 2. Leading tech firms like Cambricon (up 132.63% YTD), InnoLight, and Eoptolink have seen stellar gains, with the latter two hitting record highs on October 27.
Beyond secondary-market gains, IPO processes for tech firms have accelerated. Following June’s STAR Market reforms, companies like Moore Threads and MetaX have swiftly advanced toward listings, with approvals taking under four months from application. Meanwhile, regulatory efforts to attract long-term capital have intensified. CSRC Chairman Wu Qing reiterated commitments to reforms encouraging pension funds and insurers to adopt long-term investment strategies, fostering a "long-money, long-term" ecosystem.
The influx of institutional capital has supported market stability, with public fund AUM hitting a record 36.25 trillion yuan by August 2025—equity funds alone grew 12.76% monthly. Enhanced corporate governance and stricter IPO scrutiny, including on-site inspections and crackdowns on financial fraud (e.g., *ST Yuancheng and *ST Dongtong), have further bolstered market quality.
Comments