This week, the broad market staged a bottoming-out and rebound trajectory. The Shanghai Composite Index rose 1.39%, the Shenzhen Component Index gained 3.16%, the ChiNext Index advanced 2.14%, the STAR 50 Index surged 7.96%, and the CSI 300 Index climbed 1.73%. Affected by external markets, the market opened lower on Friday but oscillated upward and narrowed losses, demonstrating strong resilience relative to overseas markets. For next week's market, industry insiders believe that with policy support, the market is expected to continue building a bottom, and investors should monitor changes in trading volume while paying attention to external market trends and watching for opportunities in banking, power, and photovoltaic sectors on dips.
STAR 50 Index Rises Nearly 8% This Week
This week, with policy tailwinds, the market staged a bottoming-out and rebound trajectory. All major indices closed in positive territory, with the Shanghai Composite Index rising 1.39% to close at 3,649.18 points; the Shenzhen Component Index gaining 3.16% to close at 11,175.78 points; and the STAR 50 Index surging 7.96% to close at 1,253.20 points. On the news front, on November 2, the central bank, the National Financial Regulatory Administration, and the China Securities Regulatory Commission jointly held two symposiums, and relevant officials of the CSRC simultaneously announced a package of institutional arrangements in the form of a question-and-answer session. The policy signals were concentrated and the pace was tight, all pointing in one direction: stabilization tools are transitioning from "periodic emergency measures" to "long-term institutional arrangements." On November 3, the central bank conducted 100 billion yuan of swap facility operations for securities, fund, and insurance companies as scheduled, with participating institutions expanded to 31. The CSRC's policy combination is reflected in three operational dimensions: repurchase rules, product supply, and margin trading mechanisms. Industry insiders believe that compared with previous "verbal" market stabilization efforts, the differentiating feature of this week's policies lies not in their intensity but in their institutional nature. The swap facility now has a normalized operational framework of "one-year term, renewable," relending has transformed from a periodic tool into a long-term institution, and market-support repurchases are evolving from an "optional choice" to a performance requirement with capital constraints. The consensus judgment of multiple chief analysts at securities firms is that this round of policies balances short-term expectation repair with long-term institutional construction, aiming to embed market stabilization mechanisms into the infrastructure of the capital market rather than remaining at the level of single-operation pulse-style intervention. Driven by the positive news, on November 4, both the Shanghai and Shenzhen markets rose on heavy volume. The Shanghai Composite Index rose 2.16%, the Shenzhen Component Index gained 4.22%, the STAR 50 Index surged 9.92%, and the ChiNext Index advanced 6.40%. On that day, combined turnover returned above 2 trillion yuan. In terms of this week's trading volume, from Monday to Friday, the combined turnover was 1,783.7 billion yuan, 1,703.4 billion yuan, 2,037.7 billion yuan, 2,117.9 billion yuan, and 1,657.8 billion yuan, respectively.
External Market Turbulence Intensifies
On Thursday, all three major U.S. stock indices plunged. The Dow Jones Industrial Average fell 3.44%, the S&P 500 dropped 4.36%, and the Nasdaq declined 5.52%. Affected by the U.S. stock selloff, on Friday morning, Asia-Pacific markets collectively opened sharply lower. As of the close, the Nikkei 225 fell 5.96%, the KOSPI dropped 6.02%, and the Hang Seng Index declined 1.26%. On Friday morning, major A-share indices were not immune either. The Shanghai Composite Index opened 2.11% lower, the Shenzhen Component Index opened 3.72% lower, the ChiNext Index opened 4.99% lower, and the STAR 50 Index opened 5.05% lower. After the open, driven by bargain-hunting buying, the indices gradually narrowed their losses. As of the close, the Shanghai Composite Index fell 1.10%, the Shenzhen Component Index dropped 2.57%, the ChiNext Index declined 3.96%, and the STAR 50 Index fell 2.60%. On Friday, as the indices oscillated and adjusted, sectors such as telecom services, fishery, planting, and highways and railways rose against the trend, while components, communication equipment, consumer electronics, and fiberglass led the declines. In terms of this week's sector performance (Shenwan Level 1), among 31 industries, 27 rose and 4 fell. The top five gainers were media, power equipment, agriculture, forestry, animal husbandry and fishery, computer, and social services; telecom, coal, petroleum and petrochemicals, and banking led the declines.
Watch for Changes in Trading Volume
For next week's market, industry insiders believe that with policy tailwinds, the market is expected to continue building a bottom, and investors should monitor changes in trading volume while paying attention to external market trends. CITIC Securities believes that the repair of A-share market sentiment has been established, with the core basis being Wednesday's combined turnover breaking through 2 trillion yuan, signaling the entry of incremental capital rather than a stock-game dynamic. Combined with external factors such as a weakening dollar and falling U.S. Treasury yields, the index has short-term upward momentum. Strategically, it recommends holding growth mainlines in line with the trend, taking appropriate profits during sharp rallies, and using whether trading volume can continue to expand as a key indicator for tracking the quality of the rebound. CICC believes that the nature of this rebound is "sentiment- and liquidity-driven valuation repair" rather than a comprehensive fundamental reversal. Operationally, it recommends investors control positions, avoid chasing highs, and maintain a balanced allocation between growth and dividend plays. An analyst at Huaxin Securities told reporters: "This week the market oscillated upward, and policy tailwinds are helping to build a market bottom. The CSI 300 Index recorded six consecutive positive daily candlesticks, and the signs of incremental capital entering through broad-based ETFs are evident. Next week, while monitoring external market trends, investors should continue to track changes in A-share trading volume and watch for opportunities in banking, power, and photovoltaic sectors on dips."
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