Wind data shows that as of the close on November 4, the Shanghai Composite Index rose 2.16% on the day to 3,686.17 points; the Shenzhen Component Index gained 4.22% to 11,335.69 points; the ChiNext Index climbed 6.40% to 2,544.73 points; the STAR Composite Index surged 9.90%, and the STAR 50 Index jumped 9.92%. Combined turnover across the Shanghai, Shenzhen, and Beijing markets reached approximately 2.05 trillion yuan, an increase of about 336.8 billion yuan from the previous trading day, marking the first return above the 2 trillion yuan level since September 22. More than 4,600 individual stocks across the entire market advanced, with 123 stocks hitting the daily limit up.
On the trading floor, the market displayed a distinct style rotation. Among the Shenwan primary industries, electronics, telecommunications, and non-ferrous metals led the gains, followed closely by power equipment and computers; traditional dividend and consumer sectors such as food and beverage, coal, and banking declined. At the sub-sector level, the previously oversold semiconductor supply chain led the market throughout the day, with the Shenwan Semiconductor Index surging 11.41%, ranking first among secondary industries. Stocks including Jingyi Equipment, Torrance, Huafeng Test & Control, Naura Technology, and Tongfu Microelectronics hit the daily limit up; computing power hardware and robotics sectors posted broad gains in tandem; the precious metals sector was active, with Shanjin International, Chifeng Gold, and Xingye Silver & Tin hitting the limit up; innovative drugs and CRO concepts rallied in the afternoon, with WuXi AppTec and Asymchem sealing the limit up.
Huang Junhao, fund manager at Newfos Investment Fund, told the Securities Daily that the sharp rally was mainly due to the resonance of three factors: first, the People's Bank of China lowered the interest rate on relending for stock buybacks and increased holdings by 0.25 percentage points to 1% and converted it into a long-term institutional arrangement, normalizing the market stabilization funding channel; second, the technology sector had undergone sufficient adjustment in the earlier period, giving it greater rebound elasticity; third, with the U.S. midterm elections concluded and the APEC meeting window approaching, overseas risk appetite saw a recovery. Yang Delong, chief economist at Qianhai Open Source Fund, told the Securities Daily that in recent days multiple departments have jointly introduced market stabilization measures, and the policy combination has significantly boosted market confidence. Combined with the fact that many institutions had already reduced their positions to extremely low levels, concentrated capital replenishment drove the A-share rally.
Capital entering the market through ETFs became an important driver of this rebound. Wind data shows that from September 28 to November 3, equity ETFs recorded net inflows for 22 consecutive trading days, totaling approximately 555.919 billion yuan; on November 4, total ETF turnover across the market increased to 705.87 billion yuan, up 118.68 billion yuan from the previous trading day. Capital clearly concentrated toward the STAR Market and ChiNext, with ChiNext ETF E Fund and STAR 50 ETF China AMC recording turnover of 20.200 billion yuan and 19.059 billion yuan respectively.
Looking ahead, Wu Bingye, research manager at Palm Investment, told the Securities Daily that it is necessary to observe whether trading volume and margin financing balances can continue to recover, and whether the leading sectors can shift from thematic catalysts to segments with verifiable orders. November falls in the earnings vacuum period after the third-quarter reports, and investors are advised to downplay index levels and prioritize directions with high matching between valuations and order visibility.
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