Pre-market headlines.
1. US stocks surged then pulled back, with the Nasdaq falling 1.07% and the Philadelphia Semiconductor Index dropping 3.37%. Type: Market. Sentiment impact: Negative. On November 2, US stocks rallied before retreating, with the Nasdaq falling 1.07%, the S&P 500 dropping 0.5%, and the Dow gaining 0.41%. Chip stocks broadly declined, with the Philadelphia Semiconductor Index falling 3.37%. Cerebras dropped 11.7%, Intel fell nearly 9%, while Western Digital, AMD, and Seagate Technology each fell more than 7%, and SanDisk declined over 6%. Most of the Magnificent Seven tech giants declined, with Microsoft down 2.86%, Apple down 1.72%, and Nvidia down 1.23%, while Amazon gained 2.23%.
2. The central bank will raise the foreign exchange deposit reserve ratio by 2 percentage points to 6%, effective November 15. Type: Macro. Sentiment impact: Negative. The central bank announced on November 3 that, in order to strengthen foreign exchange liquidity management at financial institutions, it has decided to raise the foreign exchange deposit reserve ratio for financial institutions by 2 percentage points, from the current 4% to 6%, effective November 15, 2026.
3. A three-department symposium: buyback and increase-holding relending will become a long-term institutional arrangement, with the interest rate lowered to 1%. Type: Macro. Sentiment impact: Positive. The central bank, the National Financial Regulatory Administration, and the China Securities Regulatory Commission held a symposium on November 2 in support of the capital market's two tools, clarifying that the stock buyback and increase-holding relending policy will shift from a phased arrangement to a long-term institutional arrangement, with the relending rate reduced from 1.25% to 1%. The meeting disclosed that the balance of swap facilities stands at 105 billion yuan, while the signed amount for stock buyback and increase-holding loans is approximately 440 billion yuan, with cumulative issuance exceeding 280 billion yuan. The central bank also announced the same day that it would conduct its third swap facility operation on November 3, with a one-year swap term. Currently, 31 securities and fund companies have submitted applications, with requested quotas exceeding 100 billion yuan.
4. The "15th Five-Year Plan" implementation plan for civil aviation green development was issued, targeting a 4% reduction in carbon emissions per ton-kilometer by 2030 compared with the "14th Five-Year Plan" period. Type: Industry. Sentiment impact: Neutral. The Civil Aviation Administration of China issued the "15th Five-Year Plan Implementation Plan for Civil Aviation Green Development," proposing that by 2030, a preliminary dual-control system for total and intensity of industry carbon emissions will be established, with carbon dioxide emissions per ton-kilometer for transport aviation and per unit passenger throughput at airports to decrease by 4% and 15%, respectively, compared with the "14th Five-Year Plan" period. The plan outlines seven key tasks, including promoting the safe and orderly substitution of sustainable aviation fuel and steadily advancing the inclusion of aviation in the national carbon emissions trading market.
Investment calendar.
November 3: The National Development and Reform Commission will hold a press conference in the "Striving for the 15th Five-Year Plan" series.
Institutional views.
1. CITIC Securities: The adjustment was already front-loaded this year, and in 2027 there will be "K-shaped convergence and broader market breadth," making appropriately diversified allocation advisable.
2. SDIC Securities: Convertible bonds should "hold steady while awaiting changes," as the CSI 300 has fallen for 12 consecutive weeks, the longest streak since 2005.
3. Sinolink Securities: Margin financing is accelerating net outflows while stock ETFs continue to provide support, and the market still faces trading disruptions such as rapid deleveraging.
Positive and negative outlook.
1. The US midterm elections will be held today. Type: Market hot topic. Guosheng Securities: The US midterms take place on November 3, with focus on whether Democrats can retake both chambers.
2. Apple and AMD will release earnings after the US market closes today. Type: Institutional commentary. CITIC Securities: After Intel's Q4 guidance missed across the board, the market has begun reassessing the sustainability of EPS growth for AI assets with high consumer electronics exposure.
3. The Shenzhen APEC meeting will be held from November 18 to 19. Type: Policy focus. Guosheng Securities: At the Shenzhen APEC meeting on November 18-19, the top leaders of China, the US, and Russia may meet.
Announcement briefs.
Positive announcements.
1. CATL: As of October 31, cumulatively repurchased 19.6059 million shares, with a total transaction amount of 5.36 billion yuan.
2. Dahua Technology: A subsidiary won a centralized procurement project from China Mobile for next-generation artificial intelligence super-node equipment, amounting to approximately 2.63 billion yuan.
3. Xiechuang Data: The controlling shareholder plans to increase its stake in the company within six months, with an amount of no less than 500 million yuan and no more than 1 billion yuan.
Negative announcements.
1. Jinghua Micro: The company and controlling shareholder Lu Hanquan were placed under investigation by the CSRC on suspicion of information disclosure violations.
2. Corun: The company and controlling shareholder Corun Group were placed under investigation by the CSRC on suspicion of information disclosure violations.
3. Maixinlin: The counterparty to a computing power equipment procurement contract breached the agreement again, and the company has issued a demand letter.
Overseas markets.
On November 2, US stocks rallied then pulled back, with the Dow gaining 0.41%, the Nasdaq falling 1.07%, and the S&P 500 dropping 0.51%. Declines in heavyweight tech stocks weighed on the indices, with Microsoft down 2.86%, Apple down 1.72%, and Nvidia down 1.23%. Chip stocks fell more deeply, with the Philadelphia Semiconductor Index dropping 3.37%, Intel falling nearly 9%, and Cerebras down 11.7%. Chinese concept stocks strengthened against the trend, with the Livermore China Concept Leaders Index rising 1.15%, while Bilibili gained more than 6%.
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