For stock trading, check the Jin Qilin analyst research reports — authoritative, professional, timely, and comprehensive, helping you uncover potential thematic opportunities. Source: Gelonghui. This afternoon, major A-share indices rallied collectively, with market sentiment clearly warming up. As of press time, the ChiNext Index rose as much as 4%, the STAR 50 surged over 7%, the STAR 100 jumped more than 8%, the Shenzhen Component Index climbed nearly 3%, and the Shanghai Composite Index also turned positive, gaining over 1%.
In early trading today, the market was still unsettled by the U.S. midterm elections. Fears that Democrats might control both chambers — bringing pressure from AI regulation, data center power costs, and antitrust scrutiny — sent Japanese and Korean markets sharply lower in the morning, and Nasdaq futures also weakened at one point. A-shares showed relative restraint in the morning session, with the Shanghai Composite Index oscillating around the 3,600-point level. Although sectors such as semiconductors, robotics, and film and media were relatively strong, more than 3,700 individual stocks across the market still declined.
As election results gradually became clear, concerns about "uncertain congressional composition and fluctuating policy expectations" diminished, and global risk appetite recovered. With external headwinds no longer intensifying, the growth-oriented sectors in A-shares that had been under pressure became more likely to attract capital inflows.
This rally should not be viewed merely as a technical rebound. Behind it lies the combined effect of declining external uncertainty and an internal oversold recovery. A-shares were already in a clearly oversold state. In late October, the market underwent a sharp correction: the Shanghai Composite Index fell from around 3,690 points to 3,599 points, while the ChiNext Index dropped from 2,684 points to 2,413 points, a retracement of more than 10%, hitting a historically significant adjustment threshold. From their highs, the Shenzhen Component Index and the ChiNext Index had retraced 30% and 40% respectively from their June peaks, and the ChiNext Index valuation once fell to around the 17th percentile of the past decade. Some growth sectors saw share prices drop by a third, yet the combined net profit attributable to shareholders of the STAR Market and ChiNext boards grew 83.7% year-on-year in the first three quarters, making the "value emerging from the sell-off" characteristic of growth stocks quite evident.
Around October 23, the market's short-term downward slope was steep, volatility quickly breached historical thresholds, and bearish forces were released in a concentrated manner. On November 3, the market failed to extend the previous day's rebound, with the Shanghai Composite Index once again falling below 3,600 points, the ChiNext Index dropping 2.73%, and the STAR 50 falling 3.81%. Near the close, broad-based ETFs saw increased volume, indicating that capital was still searching for a bottom amid volatility.
Meanwhile, domestic policy was also providing support. The central bank announced that starting November 4, it would lower the relending rate for stock buybacks and shareholding increases by 0.25 percentage points to 1%, and made clear it would fully meet banks' relending quota needs, with banks having already submitted quota applications exceeding 200 billion yuan. This policy directly enhances the buyback and shareholding increase capacity of listed companies and major shareholders, helping to stabilize valuations and improve market liquidity expectations. The securities regulator also further relaxed constraints on market-supporting buybacks, allowing buybacks under "below-IPO-price" conditions, as market stabilization tools shift from temporary arrangements to normalized supply.
From a capital structure perspective, today's rally has fairly obvious characteristics of an oversold growth recovery. Sectors such as semiconductor equipment, memory chips, automotive chips, solar power, and lithium batteries strengthened, benefiting both from the overnight rebound in U.S. chip stocks and reflecting the market's demand for valuation repair after excessive prior adjustments. AI-related sectors did not fully retreat due to overseas election concerns, with subsectors such as semiconductors, robotics, and film and media remaining active, indicating that capital is more focused on industry prosperity and earnings delivery rather than simply following external sentiment fluctuations.
However, it should also be noted that today's afternoon rally mainly reflects sentiment repair after uncertainty declined and an oversold rebound. Whether a sustained recovery can take shape will still require follow-up tracking of trading volume. Overall, today's market action sends a positive signal: external election disruptions are marginally diminishing, domestic market stabilization policies continue to intensify, and the market has shifted from cautious observation in the morning to a comprehensive recovery in the afternoon. Sina disclaimer: This message is reproduced from a Sina partner media outlet. Sina publishes this article for the purpose of conveying more information and does not mean it endorses or confirms its views or descriptions. The article content is for reference only and does not constitute investment advice. Investors who act on it do so at their own risk.
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