On October 29, the three major A-share indices opened lower and declined in a one-way trend throughout the day, with the ChiNext Index and the STAR 50 Index both dropping more than 4%.
By the close, the Shanghai Composite Index fell 0.82% to 3,651.43 points, the Shenzhen Component Index dropped 2.92% to 11,138.20 points, the ChiNext Index declined 4.45% to 2,517.59 points, the STAR 50 fell 4.27% to 1,228.09 points, and the Beijing 50 dropped 3.88% to 910.08 points.
Trading volume across the Shanghai and Shenzhen markets totaled 1,556.524 billion yuan, a decrease of 71.963 billion yuan from the previous trading day. Across the entire market, 789 stocks advanced, 4,795 declined, and 63 remained flat, with 39 hitting the daily limit up and 41 hitting the limit down, meaning advancing stocks accounted for roughly 14% of the total.
In terms of sectors, aerospace equipment II rose 6.84%, coal mining gained 2.42%, city commercial banks II and large state-owned banks II both increased 2.39%, wind power equipment advanced 2.33%, and insurance II climbed 1.76%. Among the Shenwan primary industries, coal rose 2.21%, banks gained 1.97%, and food and beverage added 1.17%. The biggest decliners were communication equipment, down 8.94%; components, down 8.07%; other electronics II, down 5.30%; semiconductors, down 5.13%; automation equipment, down 5.01%; and consumer electronics, down 4.74%. Among Shenwan primary industries, telecommunications fell 7.56% and electronics dropped 5.47%.
In terms of driving factors, the Federal Reserve announced in the early hours of October 29 that it would keep the target range for the federal funds rate unchanged at 3.75% to 4.00%. The decision passed with 10 votes in favor and 2 against, with the two dissenters advocating for a 25-basis-point rate hike. The statement described economic activity as "expanding robustly" and reiterated that inflation remains elevated.
In after-hours U.S. trading overnight, Alphabet reported third-quarter results: revenue of $127.577 billion, up 25% year over year, below the market expectation of $128.2 billion; adjusted earnings per share of $2.67, below the expected $3.02; and GAAP diluted earnings per share of $2.12, compared with $2.87 in the same period last year. Free cash flow for the quarter was negative $9.1 billion, marking the second consecutive quarter of negative free cash flow; capital expenditure was $51.4 billion, below the expected $55.8 billion. The stock fell about 10% at one point in after-hours trading. On the same day, Microsoft reported third-quarter revenue of $92.3 billion, up 19% year over year, with Azure revenue growing 48%, and its shares rose nearly 3% after hours.
Asia-Pacific markets came under pressure in tandem, with South Korea's KOSPI briefly falling more than 2% during the session, as Samsung Electronics' third-quarter chip business operating profit came in below market expectations.
On the board, Shenwan primary telecommunications and electronics fell 7.56% and 5.47%, respectively; secondary communication equipment and components dropped 8.94% and 8.07%, respectively; semiconductors and consumer electronics declined 5.13% and 4.74%, respectively. Banks, coal, and food and beverage rose 1.97%, 2.21%, and 1.17%, respectively. Aerospace equipment II gained 6.84%, while the defense and military industry primary sector slipped 0.06% and aviation equipment II fell 1.45%. Trading volume across the two markets shrank by 71.963 billion yuan from the previous trading day.
The National Development and Reform Commission announced on October 29 that since the domestic refined oil price adjustment on October 15, international crude oil prices have risen sharply, and another regulatory measure on refined oil prices was taken that day.
Among hot sectors: 1. Commercial aerospace: aerospace equipment II rose 6.84%, the top gainer among Shenwan secondary industries for the day, while the defense and military industry primary sector fell 0.06% and aviation equipment II dropped 1.45%, showing clear divergence within the sector. China Satellite hit the daily limit up, closing at 55.90 yuan; the company disclosed its third-quarter report on the evening of October 28, showing revenue of 3.956 billion yuan for the first three quarters, up 27.52% year over year, and net profit of 84.9291 million yuan, up 473.4% year over year. Shanghai Hugong, Aerospace Chenguang, and Shanghai Gangwan hit the limit up, while Dianke Lantian rose 11.82%. In terms of news, the Shanghai Municipal Commission of Economy and Informatization and five other departments issued the Shanghai Satellite Internet Industry Innovation and Development Action Plan (2027-2030) on October 26, proposing that by 2030 the total number of satellites in orbit exceed 3,000 and the core industry scale surpass 80 billion yuan.
2. Banks and coal: the banking primary industry rose 1.97%, with large state-owned banks II and city commercial banks II both up 2.39%, and Bank of Qingdao up 8.02%; ICBC rose 2.57% to 8.78 yuan, China Construction Bank gained 2.29% to 12.04 yuan, Bank of China rose 1.99% to 7.16 yuan, and Agricultural Bank of China added 1.75% to 7.56 yuan, with the combined A+H share total market capitalization of the four major banks exceeding 10 trillion yuan for the first time. The coal primary industry rose 2.21% and coal mining gained 2.42%, with Kailuan shares hitting the limit up and China Shenhua rising 3.97% to 51.62 yuan.
3. Food and beverage and the ice-and-snow economy: the food and beverage primary industry rose 1.17%. Qingdao Foods hit the limit up at the open and closed at 18.13 yuan, marking its fourth consecutive trading day of limit-up since October 26; Bobi Food rose 10.03%, Huifa Food gained 10.01%, and Yiming Food added 10.00%, all hitting the limit up. The ice-and-snow economy concept strengthened, with Bingshan Refrigeration up 10.03% and Longjiang Transportation up 10.06%, both hitting the limit up. According to Meituan data, as of October 28, searches for "skiing" on the platform had increased 125% year over year since the start of October, and bookings for accommodation within 5 kilometers of ski resorts for stays between November this year and March next year had risen 217% year over year.
In the adjustment sectors, communication equipment fell 8.94%, components dropped 8.07%, semiconductors declined 5.13%, consumer electronics fell 4.74%, automation equipment dropped 5.01%, and optical optoelectronics fell 4.50%, making them the leading decliners among Shenwan secondary industries for the day. These directions have been undergoing continuous adjustment since late September. The components index fell from a close of 24,480.53 points on September 23 to 15,576.33 points, a decline of 36.37% over the period, after rising 4.97% on the previous trading day and falling 8.07% on the day.
In terms of individual stocks, WUS Printed Circuit, Pengding Holdings, and Aoshikang hit the limit down; Shengyi Technology fell 8.17%, Victory Giant Technology dropped 11.05%, and TFC Optical Communication plunged 19.77% to 161.60 yuan and touched the 20% limit-down price during the session; Eoptolink fell 11.06%, Zhongji Innolight dropped 8.53%, Changxin Bochuang declined 14.18%, and Shijia Photons fell 14.09%. In the semiconductor direction, Biwin Storage dropped 15.79%. In terms of news, TFC Optical Communication disclosed its third-quarter report on the evening of October 28, showing third-quarter revenue of 1.923 billion yuan, up 31.5% year over year, and net profit of 879 million yuan, up 55.3% year over year. Biwin Storage's third-quarter net profit rose 525.34% year over year but fell 62% quarter over quarter.
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