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Major News
1. Ministry of Finance: Effectively implement a more proactive fiscal policy to support comprehensive expansion of domestic demand. On October 9, the Ministry of Finance released its report on the implementation of China's fiscal policy in the first half of 2026. Facing increasingly complex changes in circumstances and overlapping risk challenges, the Ministry of Finance will promptly plan and introduce pragmatic and effective incremental policies based on macroeconomic conditions, intensify counter-cyclical adjustment, step up efforts to expand domestic demand and optimize supply, effectively safeguard and improve people's livelihoods, and promote sustained economic development toward new and better directions, providing strong support for a good start to the 15th Five-Year Plan. Six key areas of work were highlighted: (1) Effectively implement a more proactive fiscal policy. Reasonably accelerate the pace of fund disbursement and use, continuously optimize the structure of fiscal expenditure, ensure spending in key areas, strengthen fund supervision, and effectively improve the efficiency of fund use and policy implementation results. Reasonably accelerate government bond issuance and use, better coordinate project implementation with bond issuance, support solid and detailed preliminary planning for key projects, firmly grasp project implementation, and form more physical work volume as soon as possible. Issue special treasury bonds to increase capital in eight central financial enterprises, enhancing their ability to operate steadily, resist risks, and serve the real economy. (2) Support comprehensive expansion of domestic demand. Support the advancement of "two major" construction and "two new" initiatives, and improve implementation mechanisms. Optimize the implementation of a package of fiscal and financial coordinated policies to promote domestic demand, improve departmental coordination and central-local linkage working mechanisms, better encourage household consumption, and leverage private investment. Coordinate the use of ultra-long-term special treasury bonds, local government special bonds, central budget investment and other funds, focusing more on new quality productive forces, new urbanization and other key areas, investing more in areas of strategic significance and conducive to improving total factor productivity, and vigorously supporting major engineering projects identified in the 15th Five-Year Plan outline. (3) Promote technological innovation and industrial innovation. Highlight technological innovation supply and industrial demand traction, comprehensively use special funds, government investment funds and other policy tools, promote the optimization and upgrading of traditional industries, and cultivate and strengthen emerging industries and future industries. Implement fiscal support policies to promote the expansion, quality improvement and better development of producer services and consumer services. Improve the efficiency of technological innovation investment and increase support for critical and strategic areas. (4) Continue to safeguard and improve people's livelihoods. Actively stabilize employment and promote income growth, and strengthen employment assistance for key groups and disadvantaged groups. Adapt to structural population changes and mobility trends, and optimize the layout of basic public services such as education and medical care. Implement policies such as childcare subsidies, free preschool education, and elderly care service consumption subsidies. Strengthen inclusive, foundational and bottom-line livelihood construction, improve the service system for "the elderly and the young," and improve the tiered and classified social assistance system. Do a good job in emergency and disaster relief support, and improve the ability to prevent and respond to natural disasters. (5) Strengthen risk prevention and resolution in key areas. Continue to implement the package of debt resolution policies, accelerate the resolution of existing hidden debts, strictly prevent false debt resolution and new hidden debts, and advance the exit and reform transformation of local financing platforms. Support the stable operation of grassroots finances, implement tiered guarantee responsibilities, strengthen operation monitoring and treasury fund scheduling, and effectively uphold the bottom line of grassroots "three guarantees." Coordinate the use of existing policies and assist in clearing overdue enterprise accounts. (6) Deepen fiscal management reform. Advance fiscal scientific management pilot programs in depth. Promote the steady implementation of zero-based budgeting reform, pilot programs for integrating and coordinating the use of transfer payment funds, standardization of tax incentives and fiscal subsidy policies, and consumption tax reform. Strengthen fiscal expenditure management with stricter standards and more practical measures, and implement the requirement for party and government organs to habitually tighten their belts. Increase accounting supervision, deeply carry out the three-year action to improve the quality and effectiveness of accounting supervision, strengthen the construction of the accounting supervision system and mechanisms, further enforce financial and economic discipline, and continuously enhance the authority and effectiveness of accounting supervision.
2. U.S. optical communications leader Lumentum says capacity through early 2029 is sold out. On October 9, Hurlston, CEO of U.S. optical communications leader Lumentum, stated on Friday local time that the company's optical device capacity through early 2029 has been completely sold out. Hurlston said that for some products, about 70% of demand still cannot be met by next year, and for other products, about 30% of demand still cannot be met through 2028.
3. 826 million domestic trips during the 2026 National Day holiday. On October 9, according to calculations by the Data Center of the Ministry of Culture and Tourism, during the seven-day National Day holiday, there were 826 million domestic trips nationwide, with total domestic travel spending of 738.375 billion yuan, up 6.3% and 4.3% year-on-year respectively on a comparable basis (daily average) compared with 2025.
Market Interpretation
On October 9, the market dipped in the afternoon before rebounding, with all three major indices turning positive, after the ChiNext Index had previously fallen more than 3%. The combined turnover of the Shanghai and Shenzhen markets was 1.9 trillion yuan, an increase of 218.4 billion yuan from the previous trading day. More than 3,200 stocks across the market rose. As of the close, the Shanghai Composite Index rose 0.05%, the Shenzhen Component Index rose 0.17%, and the ChiNext Index rose 0.22%. According to Choice data, as of October 9, sectors such as blind box economy, AI corpus, and intellectual property led gains. According to Choice data, as of October 9, on the market, the film and television and media sectors continued to climb, with Chinese Online, Shanghai Film, Longban Media (rights protection), Jishi Media, Mango Super Media, New Classic, and Zhangyue Technology hitting the daily limit; the lithium battery concept strengthened during the session, with Shidai Wanheng achieving five consecutive limit-ups, Zizhu Gaoke four consecutive limit-ups, Lingpai Technology two consecutive limit-ups, and Jinyuan shares (rights protection) hitting the daily limit; agriculture stocks Jinjian Rice Industry, Wanxiang Denong, and Dunhuang Seed Industry hit the daily limit; major consumption stocks Guofang Group, Baida Group, and Lirenyi Makeup hit the daily limit; the organosilicon concept was active, with Chenguang New Materials hitting the daily limit and Dongyue Silicon Material up 20CM to the daily limit. According to Choice data, as of October 9, in terms of consecutive limit-ups, Xinhua Media today saw turnover of 4.78% on increased volume, once again advancing in a one-word board to nine consecutive limit-ups, while Jiuyang shares and Shidai Wanheng secured five consecutive limit-ups. Source: Choice data, as of October 9. This week after the National Day holiday, there were only two trading days. The Shanghai Composite Index (-0.74%), SSE 50 (-0.56%), and CSI 300 (-0.93%) all kept weekly declines within 1%, showing relatively stable performance; while the STAR 50 (-4.75%) and ChiNext Index (-2.93%), which had previously risen sharply and had stronger offensive characteristics, suffered significant adjustments, with the CSI 1000 and Shenzhen Component Index also falling close to 2%. The divergence was mainly because technology growth sectors that had accumulated substantial profits faced strong selling pressure and profit-taking demand, with a strong willingness for capital to switch from high to low. Today, the market dipped and rebounded, while relatively stable large-cap dividend and blue-chip stocks surged in the afternoon before pulling back. After the holiday, short-term capital preference was still mainly to lock in gains. According to Choice data, as of October 9, the Shanghai Composite Index once again probed lower support this week, and after retesting 3,754 points today, it rebounded and closed with a long lower shadow, regaining the 3,800-point level, possibly forming a double bottom with the previous 3,741 points. It is expected that market funds have a certain willingness to bottom-fish below 3,800 points, and there is a relatively high possibility that观望 funds will flow back to reposition next week. On the news front, U.S. Treasury yields have recently fluctuated sharply at high levels, suppressing valuations of global technology and high-valuation growth stocks, which is one reason that the high-beta STAR 50 (-4.75%) and ChiNext Index (-2.93%) bore concentrated selling pressure in the two trading days after the holiday. At the same time, spot gold quickly stabilized and rebounded after previous adjustments, indicating that global funds have maintained a defensive posture amid macroeconomic uncertainty, providing bottom-level positive support for A-share non-ferrous metals and dividend resource sectors. In terms of allocation, we suggest focusing on four directions: first, oversold rebounds in technology growth stocks; short-term indicators for the STAR 50 are already in oversold territory, and hard technology sectors such as semiconductors and AI that were mistakenly sold off have repair demand. Second, high-dividend and large-cap dividend weights (such as banks, coal, and power); against the backdrop of persistently high U.S. Treasury yields, the defensive attributes of the SSE 50 and CSI 300 remain a safe haven for funds. Third, energy, non-ferrous metals, and gold commodities, benefiting from strong gold prices and inflation expectations. Fourth, the third-quarter earnings excellence line; as third-quarter earnings disclosure enters a dense period in mid-October, market funds will shift from concept speculation to performance-driven logic, and close attention should be paid to segment leaders with quarter-on-quarter improvement or better-than-expected growth. A big gift has been prepared for you; click to claim it for free. [Risk Warning and Disclaimer] All information contained in this material is sourced from public information. Mentioned individual stocks are for illustrative listing only and do not constitute investment advice or a basis for investment decisions. Investors should make prudent judgments and choose products and services that match their own risk tolerance and investment objectives. Investors bear their own risks when operating based on this information. Orient Wealth Securities strives to ensure the objectivity and fairness of the content and views in this article, but does not guarantee the accuracy or completeness of its content. Under no circumstances shall Orient Wealth Securities be liable for any direct or indirect losses incurred by any institution or individual due to the use of the content of this article. Markets carry risks, and investment requires caution.
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