Three departments: the stock buyback and increase-holding relending policy shifts from a temporary arrangement to a long-term institutional arrangement, with the relending rate cut from 1.25% to 1%.
According to reports, on November 2, 2026, the People's Bank of China, together with the National Financial Regulatory Administration, the China Securities Regulatory Commission and other departments, successively held a symposium on swap facilities for securities, fund and insurance companies and a symposium on relending for stock buybacks and increased holdings. The meetings proposed that, in order to maintain capital market stability and enhance market resilience and confidence, the People's Bank of China, the National Financial Regulatory Administration and the China Securities Regulatory Commission will continue to strengthen policy support, further optimize policy elements and implementation rules, and encourage financial institutions to make full and good use of policy tools. Swap facility operations for securities, fund and insurance companies will be carried out in due course, the number of participating institutions will be further increased, swap rates will be appropriately lowered, and pledge and operating models will be optimized. The stock buyback and increase-holding relending policy will shift from a temporary arrangement to a long-term institutional arrangement, with the relending rate cut from 1.25% to 1%; financial institutions will adhere to the principle of market-based pricing, reasonably add margins on top of the relending rate and increase loan disbursement.
Market Outlook
The Nasdaq Composite fell 1.07%, with most of the "Magnificent Seven" technology giants declining. In overnight U.S. trading, the Dow Jones Industrial Average rose 213.67 points from the previous trading day to close at 51,983.98 points, up 0.41%; the S&P 500 fell 38.67 points to close at 7,541.4 points, down 0.51%; the Nasdaq Composite fell 272.68 points to close at 25,164.32 points, down 1.07%. Most of the "Magnificent Seven" technology giants declined, with Nvidia down 1.26%, Apple down 1.83% and Microsoft down 2.83%; chip stocks fell broadly, with the Philadelphia Semiconductor Index down 3.37%, Cerebras down 11.74%, Intel down 8.80% and Seagate Technology down 7.88%; Lumentum fell more than 18% and Marvell Technology fell more than 12%, after the two companies previously announced an all-stock merger agreement. Chinese concept stocks rose overall, with the Nasdaq Golden Dragon China Index up 2.25% at 5,518.10 points, as e-commerce and internet platform stocks strengthened collectively. Among individual stocks, Tencent Holdings' ADR rose 2.49%, Alibaba rose 3.53% and Pinduoduo rose 3.91%. Hong Kong stock ADRs rose, and on a proportional basis the Hang Seng Index was calculated to close at 23,440.59 points, up 47.27 points or 0.20% from the Hong Kong close. On the New York Mercantile Exchange, the front-month continuous WTI crude oil futures contract fell $8.19 to $95.93 per barrel, down 7.87%. The front-month continuous COMEX gold futures contract rose $57.10, or 1.46%, to $3,956.0 per ounce.
Key Developments to Watch
The central bank will conduct swap facility (SFISF) operations for securities, fund and insurance companies on November 3. The People's Bank of China announced on November 2 that it will conduct swap facility (SFISF) operations for securities, fund and insurance companies on November 3, with a swap term of one year that can be extended as appropriate. This is the third operation since the tool was created. The announcement showed that 31 securities and fund companies have currently submitted demand, with requested quotas exceeding 100 billion yuan. To promote the healthy and stable development of the capital market, in October 2024 the People's Bank of China decided to create swap facilities for securities, fund and insurance companies, supporting eligible securities, fund and insurance companies to use assets such as bonds, stock ETFs and CSI 300 constituent stocks as collateral to exchange with the People's Bank of China for high-grade liquid assets such as government bonds and central bank bills. The move aims to enhance the fund-raising capacity and stock increase-holding capacity of relevant institutions. Apple's fiscal fourth-quarter revenue of $114.48 billion exceeded market expectations. Apple's fiscal fourth-quarter revenue was $114.48 billion, up 12% year on year, compared with an estimate of $113.47 billion; iPhone revenue was $57.58 billion, up 17% year on year, compared with an estimate of $56.49 billion; Mac revenue was $10.79 billion, up 24% year on year, compared with an estimate of $9.7 billion; iPad revenue was $6.23 billion, down 10% year on year, compared with an estimate of $6.89 billion. Apple gave a holiday-quarter revenue outlook above Wall Street expectations but still failed to impress investors who had spent months driving its share price higher. Apple said on Monday at its earnings call that revenue for the first fiscal quarter ending in December would grow 7% to 10%. Compiled data showed analysts on average expected growth of 6.1%. Apple shares fell about 3% after hours, highlighting the market's high expectations for the company. Junzhi Group (01300) pre-won bids in China Telecom's centralized procurement project for feeder line and accessory products (2026-2028). The specific pre-won bid projects are as follows: Package 1: feeder lines: Junzhi Technology's bid quotation this time was 738 million yuan excluding tax, ranking fifth; Package 2: feeder line accessories: Junzhi Technology's bid quotation this time was 88.3344 million yuan excluding tax, ranking second. CSPC Pharmaceutical Group (01093): the Phase III clinical trial of Prucalopride tablets combined with dapagliflozin tablets and metformin hydrochloride extended-release tablets for the treatment of type 2 diabetes achieved positive top-line results. This pivotal study reached the preset primary endpoint and achieved positive top-line results. Statistical analysis showed that after 24 weeks of triple combination therapy with prucalopride, dapagliflozin and metformin, patients' HbA1c reduction from baseline was significantly better than in the dapagliflozin plus metformin group or the prucalopride plus metformin group. In addition, the triple combination treatment regimen showed good safety, with an overall incidence of adverse events comparable to the two dual combination regimens and without increasing safety risk. Hantiancheng (02726) issued a positive profit alert, expecting net profit for fiscal year 2026 of about 108 million yuan to 158 million yuan, a year-on-year increase of about 800% to 1,217%. Adjusted net profit is expected to be about 281 million yuan to 331 million yuan, compared with 198 million yuan in fiscal year 2025, a year-on-year increase of about 42% to 67%. Based on currently available information, the board believes the expected change in results is mainly attributable to: growth in downstream application demand from AI data centers, which drove an increase in orders and sales of the group's silicon carbide epitaxial chips and revenue growth. Hard Egg Innovation (00400) reported revenue of about 20.916 billion yuan for the first three quarters, an increase of about 109.0%. Operating profit was about 816 million yuan, up about 102.3% year on year. The group's current customer demand remains strong, orders are abundant and diversified, and business visibility is good. In particular, the group has signed a formal service contract for a brand-new AI Token factory business, with total contract value (TCV) exceeding $1 billion, and it is expected that by the end of 2026 the related TCV may move further toward the goal of doubling. Cowell e Holdings (01415) increased its share buyback limit to as much as HK$720 million. Cowell e Holdings (01415) announced that on November 2, 2026, the board authorized and approved increasing the total consideration of the share buyback plan from HK$320 million to as much as HK$720 million during the period from July 3, 2026 to November 2, 2027. CITIC Securities Asset Management reduced its holdings in CGN Power (01816) by 62.452 million shares at about HK$3.43 per share. The latest data from the Hong Kong Stock Exchange showed that on October 29, CITIC Securities Asset Management reduced its holdings in CGN Power (01816) by 62.452 million shares at HK$3.4308 per share, for a total amount of about HK$214 million. After the reduction, its latest shareholding was about 2.061 billion shares, with a latest shareholding ratio of 18.46%.
Stock in Focus
CATL (03750): CATL's Debrecen base reportedly sees major progress. According to market media reports, after more than three and a half years of litigation, CATL's Debrecen base has seen major progress. On October 29, 2026, the Debrecen court rejected local residents' lawsuit against the environmental permit for CATL's battery plant, finding that there was no illegality in the government approval process, and the ruling cannot be appealed. It is reported that at the end of September this year, CATL's newly built cell plant in Debrecen, Hungary, officially began production. The plant is planned for 100GWh with a total investment of 7.34 billion euros, and cumulative module output has reached 537,000 units. It is worth noting that recently the domestic lithium battery industry chain has launched a new round of localized capacity sprint in Europe. Most interviewees believe that the overseas layout of domestic lithium battery industry chain companies has moved from the "positioning race" of earlier years into a verification stage of capacity implementation and benefit realization, with refined and localized operating capability becoming the core touchstone, and players with stable orders and compliance management and localized supply chain capabilities will stand out in overseas layout competition.
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