According to opening data, on November 6, the Shanghai Composite Index opened 2.11% lower at 3,612.15 points, the Shenzhen Component Index opened 3.72% lower at 11,044.56 points, and the ChiNext Index opened 4.99% lower at 2,438.72 points.
The STAR 50 opened 5.05% lower at 1,221.67 points.
As of 9:33 AM, across the Shanghai and Shenzhen markets, a total of 344 stocks advanced, 5,200 declined, and 35 remained flat.
Top gainers by sector: photovoltaic equipment, precious metals, large state-owned banks, livestock farming, and white goods; top losers by sector: communication equipment, electronic components, glass and fiberglass, automation equipment, non-metallic materials, and electronic chemicals.
Market Overview
All four major indices opened lower across the board, with the ChiNext Index and STAR 50 posting the steepest opening declines.
The Shanghai Composite opened at 3,612.15 points, hitting an intraday low of 3,610.20 points before fluctuating upward, and as of 9:33 AM was down 1.78% at 3,624.04 points; the Shenzhen Component Index fell 2.61% to 11,171.60 points, the ChiNext Index dropped 3.90% to 2,466.71 points, and the STAR 50 declined 3.56% to 1,240.87 points, with all four narrowing their losses from their morning lows.
In terms of structure, communication equipment led the decline with a drop of 8.21%, electronic components fell 7.76%, glass and fiberglass dropped 5.48%, automation equipment declined 4.32%, non-metallic materials fell 4.27%, electronic chemicals dropped 4.11%, and semiconductors declined 4.04%; photovoltaic equipment bucked the trend with a gain of 1.30%, the only sector rising more than 1%, while precious metals, large state-owned banks, livestock farming, and white goods posted modest gains.
As of 9:33 AM, across the Shanghai and Shenzhen markets, 344 stocks advanced, 5,200 declined, and 35 remained flat, with 10 stocks hitting the daily limit up and 2 hitting the daily limit down, meaning advancing stocks accounted for roughly 6% of the total, with the majority of individual stocks under pressure.
Overnight News Highlights
U.S. chip stocks plunged: On November 5, the Dow Jones fell 3.44% to 51,523.06 points, the S&P 500 dropped 4.36%, and the Nasdaq declined 5.52% to 24,315.00 points, while the Philadelphia Semiconductor Index plummeted 12.25%, marking its largest single-day drop since March 2020; on the morning of November 6, South Korea's KOSPI briefly fell 8%, triggering a circuit breaker.
Financial work report clarifies market stabilization mechanism: On November 3, the State Council's report on financial work was submitted to the 25th session of the Standing Committee of the 14th National People's Congress for deliberation, and the full text was released on November 5, explicitly supporting Central Huijin Company in playing a quasi-stabilization fund role, broadening medium- and long-term funding sources, channels, and market entry methods, and consolidating and improving the capital market stabilization mechanism; the relending rate for stock buybacks and shareholding increases was lowered to 1% effective November 4.
Photovoltaic supply chain rallies on heavy volume: On November 5, the A-share photovoltaic equipment sector strengthened on heavy volume, as market expectations grew for the continuation of clean energy tax credits following the U.S. midterm elections, and combined with the sector's prior deep correction and relatively thorough digestion of pessimistic expectations, capital flowed back into the solar supply chain; on the same day, the precious metals and cultural media sectors also strengthened in tandem.
Trend Assessment
All four major indices opened lower across the board, with the Shanghai Composite opening down 2.11% and both the ChiNext Index and STAR 50 opening down about 5%, before losses gradually narrowed after the open.
Communication equipment, electronic components, and semiconductors underwent significant adjustments, while photovoltaic equipment, precious metals, large banks, and white goods rose against the trend, with 344 stocks advancing and 5,200 declining.
The overnight concentrated sell-off in the U.S. AI supply chain, with the Philadelphia Semiconductor Index falling 12.25% in a single day, transmitted a contraction in risk appetite to A-share hardware segments; banks, white goods, and livestock farming are defensive allocations that posted modest gains, while the 1.30% gain in photovoltaic equipment is a continuation of the overnight reassessment of U.S. clean energy policy expectations, with the two driven by different factors.
For the indices to recover, volume support is still needed.
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