Market hotspots have shifted from robotics to new energy and other sectors.
On November 3, major A-share indices showed weak performance, with AI-related sectors such as optical modules and chips continuing to decline. At the same time, new energy sectors including batteries and photovoltaics picked up the baton from the robotics sector's rally in late October.
Leading stock Sungrow Power Supply Co., Ltd. (300274.SZ) rose 5.63%, marking two consecutive days of gains. In the power battery sector, EVE Energy Co., Ltd. (300014.SZ) and Sunwoda Electronic Co., Ltd. (300207.SZ) among others rebounded for multiple consecutive days.
State-owned bank stocks, which hit new highs on November 2, experienced a pullback. The "see-saw" effect between dividend assets and growth sectors, and whether the market can launch a new round of rotation as a result, has drawn investor attention.
Industry insiders interviewed by Yicai Global believe that bank stocks had previously attracted concentrated capital allocation as dividend defensive assets. After the third-quarter earnings disclosure period ended, some funds began flowing out of defensive sectors to replenish growth directions that had previously fallen significantly. In the short term, investors can focus on oversold sectors such as semiconductors, communication equipment, and electrical new energy.
Bank Stocks Retreat Across the Board
On the morning of November 3, Industrial and Commercial Bank of China Ltd. (601398.SH) fell 2.53%, and China Construction Bank Corporation (601939.SH) dropped 2.65%, with the banking sector declining as a whole, reversing its previous strong performance.
Li Qian, an investment advisor at Guangzhou Yuesheng Wealth Management, told Yicai Global that banks had previously been concentrated as dividend defensive assets. After the third-quarter earnings disclosure period ended, some funds began flowing out of defensive sectors to replenish oversold growth directions. Although the market shows characteristics of capital switching from high-position defensive sectors to low-position growth sectors, institutions generally characterize this as sentiment repair after overselling rather than a trend reversal, and subsequent sector rotation may accelerate.
Yu Fenghui, a consultant at the Hong Kong Stock Connect 100 Research Center, stated that the "see-saw" is tilting again, but its nature remains a phased style rebalancing after overselling. After third-quarter earnings landed, the dominant factor in the market is shifting from earnings verification to policy and liquidity expectations. Sectors on the ChiNext and STAR Market boards have room for rotation, but still need relevant conditions to align. Some investors who previously accumulated substantial floating profits in dividend assets are now seeing capital flow from low-volatility defensive sectors to oversold growth tracks as market risk appetite marginally improves.
Li Mingluo, an investment manager at Cheese Fund, said whether the "dual innovation" boards can have a new round of rebound still has room for continuation in the short term, but compared to confirming a new upward trend, it is more likely a valuation repair and risk appetite recovery after a sharp decline. Regulatory authorities have further reinforced structural monetary policy tools, solidifying the policy bottom. Although broad-based indices fell this morning, over 3,300 individual stocks across the market rose, with gaming, batteries, film and television, and rare earth sectors strengthening, while technology sectors such as semiconductors, CPO, storage, and robotics led declines. Market capital has not left but is making high-low sector switches under policy catalysis: withdrawing from high-position computing hardware and banks, flowing into oversold AI applications, batteries, and rare earths. Sector overselling is the most fundamental driving force for a rebound, and combined with genuine policy-backed volume support, technology stocks can be expected to gradually recover.
Expecting Oversold Repair After Third-Quarter Earnings
Regarding market style, market participants believe rotation is concentrated in leading stocks with earnings certainty and stable cash flow. Li Mingluo stated that this round of market movement remains an oversold repair under stock-game conditions. In the next stage, the key is whether semiconductors, domestic computing power, and AI hardware can take over from robotics, especially whether trading volume can be sustained continuously and whether the number of advancing stocks can maintain an advantage. In terms of allocation, it is not advisable to guess the bottom; investors are advised to control positions and build positions in batches, selecting profitable leaders with solid cash flow, and reserving cash to wait for confirmation of a new trend in the dual innovation market.
Yu Fenghui said that after the third-quarter earnings disclosure period ended, the marginal pricing weight of earnings on the market has somewhat declined. Historical data shows that the window period after third-quarter earnings disclosure is a stage with a higher probability of A-share gains, with 12 out of 15 years showing increases. The reason is not simply determined by earnings quality, but rather that October declines had already priced in some negative factors in advance. After financial reports land, new variables such as policy and liquidity begin to dominate valuation repair. The market's main focus has shifted from whether earnings can be delivered to whether liquidity expectations can improve. The "dual innovation" boards have room for repair, but it remains a repair-oriented rotation rather than a new trend already launched.
Li Qian stated that semiconductors and AI hardware directions have earnings support, and policy support for the capital market is clear, with medium- to long-term capital entering the market and share buybacks and increases being promoted. Constraints include tight external liquidity, rising probability of a Federal Reserve rate hike in December, and some AI hardware sectors pulling back after rising during the rebound, indicating that concerns about high valuations have not been fully eliminated. Going forward, attention can be paid to whether events such as the mid-November semiconductor expo and the APEC meeting can provide new catalysts.
Deng Lijun, a strategy analyst at Huajin Securities, said that reviewing history, A-share November trends are mainly driven by policy and external events, fundamentals, and liquidity factors. Liquidity may remain accommodative, and the domestic central bank may continue to increase capital injection in November, while the Federal Reserve is unlikely to continue raising rates. In terms of market style, large-cap and small-cap styles may be relatively balanced in November, and it is recommended to allocate in a balanced manner across oversold technology growth and low-valuation blue chips. Some technology growth and consumer sectors may be relatively favored in November.
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