A brief pullback found support, and A-shares once again staged a rebound.
On November 11, the Shanghai Composite Index completed its bottoming move in the morning session before beginning a volatile recovery, and in the afternoon it successfully climbed above its 20-day moving average. The Shenzhen Component Index likewise fell back to its 10-day moving average in the morning before launching a volatile rebound, ultimately finishing just shy of its 20-day moving average.
Compared with the main boards, the ChiNext and STAR Market indices put on a standout performance, driven by a collective rebound in technology stocks. Among them, the optical module sector, which carries a large weight in the ChiNext, surged sharply, driving the ChiNext Index to a gain of more than 3%. The STAR 50 Index, meanwhile, rose nearly 3% on the back of a rebound in semiconductor stocks.
As of the close, the Shanghai Composite Index stood at 3,680.64 points, up 0.46%; the Shenzhen Component Index closed at 11,389.74 points, up 1.32%; the ChiNext Index closed at 2,572.07 points, surging 3.11%; and the STAR 50 Index closed at 1,300.38 points, jumping 2.8%.
Amid the market's continued rebound, trading volume also expanded somewhat, with combined turnover across the Shanghai, Shenzhen and Beijing markets reaching 1.69 trillion yuan, an increase of more than 170 billion yuan from the previous trading day.
On the board, communications equipment, components, semiconductors and consumer electronics led the gains. Liquor, aviation and airports, photovoltaic equipment, and hotels and catering sectors, by contrast, pulled back against the trend. At the individual stock level, more than 3,500 stocks across the market rose, of which 85 hit the daily limit up, while fewer than 1,900 stocks declined.
As the market gradually stabilized with volatility in the bottoming zone, the attitude of institutional players has also been gradually warming. Bohai Securities pointed out that after the market's earlier decline, its valuation advantage has become increasingly evident, and its allocation value has risen significantly. The clear stance of management on stabilizing the market and the combination of multiple policy measures have brought the stock market's liquidity into a process of stabilization and repair. The short-term logic of the market lies in sentiment repair after the oversold condition. As the market enters a phase with no major earnings releases, if theme stocks can gradually become active, it will help market sentiment recover further, thereby driving the index into a sustained rebound.
Soochow Securities said that policy signals have recently landed in quick succession. On November 2, the central bank and the securities regulator held a symposium to study optimizing the relending policy for stock buybacks and shareholding increases, reflecting the financial authorities' high attention to the market's liquidity conditions and conveying a positive policy signal of maintaining reasonably ample liquidity. In addition, since October, broad-based ETFs have seen notably increased volume during trading sessions, indicating that funds have entered the market to provide support, echoing the policy signals, and the market's micro-liquidity environment is expected to improve gradually.
Overall, from mid-to-late November, the U.S. stock earnings season will essentially come to an end, year-end allocation-oriented funds will favor the value style, and combined with institutions' year-end rankings and the early build-up of expectations for a "spring rally," the market is expected to usher in a repair window. In the short term, under the current volume conditions, the market may present more of a rotational行情 rather than a broad-based rally.
Yang Changlong, a senior investment adviser at Jufeng Investment Advisory, said in an interview that "from a support perspective, the market's volume expanded noticeably on Wednesday afternoon, indicating that funds were not making short-term tentative moves but rather showing genuine return flows. However, the pressure from trapped positions above the index remains heavy, divergence within technology themes is gradually intensifying, and some high-flying stocks with consecutive daily limit-ups have already issued clear risk warnings. At the same time, the current market volume level is still in a stock-game range and has not yet entered a phase of comprehensive incremental flows. In summary, the structural rebound of the technology main line will most likely continue, but the market is more likely to show a pattern of 'main line continuing, rotation accelerating, index fluctuating' rather than a broad-based, across-the-board main upward trend."
Comments