On November 5, the Shanghai Composite Index opened down 1.07% at 3,646.57 points, the Shenzhen Component Index opened down 1.05% at 11,216.81 points, and the ChiNext Index opened down 2.00% at 2,493.73 points. The STAR 50 Index opened down 2.33% at 1,236.01 points.
As of 9:32 a.m., a total of 3,319 stocks in the Shanghai and Shenzhen markets were advancing, 1,980 were declining, and 279 were flat. The top gainers by sector included precious metals, solar equipment, aviation and airports, advertising and marketing, and decoration and renovation. The biggest losers included components, communication equipment, oil and petrochemicals, coal mining, robot actuators, and CPO concepts.
Market Overview
After opening broadly lower, the three major indices quickly rebounded, with their declines narrowing from the opening levels. As of 9:32 a.m., the Shanghai Composite stood at 3,652.72 points, down 0.91%; the Shenzhen Component was at 11,276.07 points, down 0.53%; the ChiNext Index was at 2,509.30 points, down 1.39%; and the STAR 50 was at 1,249.49 points, down 1.26%.
Structural divergence was pronounced: the precious metals sector led gains after gold prices surged more than 3% overnight, with solar equipment, aviation and airports, and advertising and marketing also strengthening in tandem. Components, communication equipment, robot actuators, and CPO concepts moved lower. The semiconductor sector rebounded quickly to near flat after opening lower, while the computing hardware chain continued to absorb the pressure from the overnight decline in the Philadelphia Semiconductor Index. Across the entire market, 3,319 stocks rose and 1,980 fell, with 14 hitting the daily limit up and none hitting the limit down 鈥?indices were in the red while advancers outnumbered decliners.
Overnight News at a Glance
All three major U.S. indices closed higher: Democrats reclaimed both chambers of Congress in the midterm elections, the Dow Jones rose 3.03% to 53,356.12 points, the S&P 500 gained 1.58%, and the Nasdaq added 1.44%, led by technology giants. However, AI infrastructure stocks faced concentrated selling, with the Philadelphia Semiconductor Index falling 3.13% to 10,268.66 points, a closing low not seen since April 28.
Buyback and shareholding increase relending rate cut to 1%: The central bank lowered the rate on this facility by 0.25 percentage points on November 4, expanded eligible institutions to 21 national banks and 5 systemically important city commercial banks, and bank applications have already exceeded 200 billion yuan. On November 5, the central bank conducted 300 billion yuan of 3-month (91-day) outright reverse repos through a fixed-quantity, rate-based auction with multiple price awards. Since 500 billion yuan of same-tenor instruments matured during the month, this was a reduced rollover, resulting in a net withdrawal of 200 billion yuan.
International oil prices plunged in a single day: Markets bet on a de-escalation of Middle East hostilities, with the WTI December contract falling 8.29% to $88.12 and the Brent January contract dropping 8.67% to $94.62, both hitting two-month lows. COMEX gold futures rose 3.34% to $4,072.20.
Trend Assessment
External signals were mixed. The three major U.S. indices posted sharp gains as midterm election results came in, with the Dow logging its largest single-day gain since April 2025, but the AI infrastructure chain was hit by concentrated selling, sending the Philadelphia Semiconductor Index to its lowest close since April 28. This divergence mapped directly onto the opening, pressuring A-share computing hardware, storage, and optical module sectors. On the domestic policy front, structural support was strengthened as the buyback and shareholding increase relending rate was cut to 1% and eligible institutions were expanded. In terms of overall liquidity, however, conditions tightened, with the 300 billion yuan of 3-month outright reverse repos on November 5 representing a reduced rollover against 500 billion yuan maturing during the month, a net withdrawal of 200 billion yuan. After the previous trading day's high-volume rally, short-term profit-taking and external hardware pressures emerged simultaneously.
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