To The Moon

On November 11, the Shanghai Composite Index opened 0.22% lower at 3,655.66 points, the Shenzhen Component Index opened down 0.32% at 11,205.35 points, the ChiNext Index opened 0.17% lower at 2,490.10 points, and the STAR 50 Index opened down 0.39% at 1,260.07 points.

As of 9:40 a.m., a total of 3,549 stocks in the Shanghai and Shenzhen markets were advancing, 1,693 were declining, and 338 were flat, with 28 hitting the daily limit up and 1 hitting the limit down. Combined turnover for the two markets stood at 212.245 billion yuan, down 41.102 billion yuan compared with the same period on the previous trading day.

Sectors leading the gains included communications equipment, electronic components, kitchen and bathroom appliances, auto services, and plastics, while precious metals, film and cinema chains, industrial metals, and digital media were among the biggest decliners.

Market Overview

All three major indices opened slightly lower, with the STAR 50 posting the largest opening decline. After the open, the indices fluctuated upward. As of 9:40 a.m., the Shanghai Composite stood at 3,669.75 points, up 0.16%; the Shenzhen Component reached 11,267.78 points, up 0.23%; the ChiNext Index hit 2,514.84 points, up 0.82%; and the STAR 50 came in at 1,271.05 points, up 0.48%. All four indices had climbed back above their previous trading day's closing levels.

Most sectors advanced, with communications equipment, electronic components, kitchen and bathroom appliances, and auto services leading the way, while optical chips and Broadcom-related computing hardware themes were active. Precious metals, film and cinema chains, and industrial metals posted the steepest declines, with lithium mining and CRO concepts lagging behind.

Overnight News Highlights

The three major U.S. indices all closed lower on November 10: the Dow Jones fell 0.30% to 52,231.89 points, the Nasdaq dropped 0.74% to 25,065.87 points, and the S&P 500 declined 0.38% to 7,520.93 points. Nvidia tumbled 5.47%, bringing its two-day cumulative loss to about 9.5%. COMEX gold briefly fell below $4,100 per ounce intraday, touching a low of $4,020.8.

Institutions began building positions under the swap facility: as of November 10, 13 securities firms had completed their first batch of stock purchases under the third round of swap facility operations. That round was launched on November 3 with a scale of 100 billion yuan, drawing bids from 31 securities and fund companies, with a winning rate of 10 basis points.

Share buyback and increase-holding relending became a long-term institutional arrangement: effective November 4, the interest rate on relending for stock buybacks and increased holdings was cut by 0.25 percentage points to 1%. The scope of eligible recipients was expanded to 21 nationwide banks and 5 systemically important city commercial banks, and the program shifted from a temporary arrangement to a long-term institutional framework.

Computing power scale ranks second worldwide: the National Data Administration disclosed on November 10 that China's total computing power has reached 3.1 million PFLOPS, ranking second globally. The National Technical Committee for Data Standardization also established a drafting working group for embodied intelligence data standards and four industry application standard working groups covering meteorology, health, electric power, and commerce on the same day.

Trend Assessment

After the open, the indices rebounded continuously from their lows. The Shanghai Composite and Shenzhen Component turned positive one after another, the ChiNext Index's gain widened to more than 0.8% at one point, and the STAR 50 also turned higher in tandem. The number of advancing stocks across the market rose above 3,500, and the profit-making effect improved markedly from the early session. Structurally, communications equipment and electronic components in the computing hardware segment led the gains, while precious metals and film and cinema chains extended their corrections, producing a pattern of broad index gains with sector divergence. The institutional consensus leans toward a volatile recovery, with valuations and positioning pressures having been released and a rebound expected to continue, though its pace will depend on incremental capital, and rotation is likely to remain the dominant structural feature.