A-share Pre-market Briefing | Philadelphia Semiconductor Index rises 2.8%; Central Bank establishes swap facility for large non-bank redemptions in the bond market

Pre-market Briefing 1. Nasdaq closes up 0.82%; Philadelphia Semiconductor Index rises 2.8% Type: Market | Sentiment impact: Positive The three major US stock indices closed higher collectively, with the Nasdaq up 0.82%, the S&P 500 up 0.7%, and the Dow up 0.29%. The memory and optical communications sectors strengthened, with SK Hynix up more than 4%, Lumentum up more than 8%, and Coherent up more than 5%; chip stocks rose broadly, with the Philadelphia Semiconductor Index closing up 2.8%, its biggest gain in a month. The "Magnificent Seven" tech giants were mixed, with Tesla up 5.21% and Nvidia up 2.39%, while Google fell 0.97% and Meta Platforms fell 1.88%. International oil prices retreated from a six-month high, with December-delivery WTI crude futures falling 1.5% to settle at US$101.76 per barrel. 2. Central Bank establishes swap facility for large non-bank redemptions in the bond market Type: Macro | Sentiment impact: Neutral The People's Bank of China decided to establish a Bond Market Non-Bank Large Redemption Swap Facility (BNSF). Under specific scenarios where asset management institutions face group liquidity risk and the bond market comes under systemic pressure, it supports systemically important bank wealth management subsidiaries and public fund managers in borrowing central bank bills from the PBOC for market repo financing, purchasing eligible bonds or product shares of publicly offered products that have suffered redemptions, and pledging them to the PBOC. The central bank said the move is to maintain bond market stability, and participating institutions should continuously meet financial market prudential management requirements. 3. National Energy Administration: National power generation capacity reaches 4.13 billion kilowatts at end-September, up 11.2% year on year Type: Industry | Sentiment impact: Neutral The National Energy Administration released national electricity statistics for January-September. As of end-September, China's cumulative installed power generation capacity was 4.13 billion kilowatts, up 11.2% year on year; of this, CECEP Solar Energy generation capacity was 1.31 billion kilowatts, up 16.5% year on year, and wind power capacity was 700 million kilowatts, up 20.4% year on year. In January-September, the cumulative average utilization of national power generation equipment was 2,174 hours, 194 hours lower than the same period last year. 4. Broadcom and Bank of America and other institutions establish US$63 billion AI financing arrangement Type: Industry | Sentiment impact: Positive Institutions including Bank of America, Blackstone, Citigroup and Morgan Stanley are working with Broadcom to jointly establish an AI financing arrangement totaling US$63 billion to fund AI computing power. Over the same period, US investment-grade bond issuance this year is expected to reach US$1.76 trillion, exceeding the record US$1.75 trillion set in 2020. Surging artificial intelligence spending is driving companies to increase borrowing. Investment Calendar October 27-October 29: 2026 Satellite Application Conference (Shanghai) Institutional Views 1. CITIC SEC: Supply constraints to persist in 26Q4; copper prices expected to run high, coal prices may rise in peak season 2. Huafu Research: US Treasuries see safe-haven buying; gold price falls 4.1%, oil price rises somewhat 3. Guotou Securities: Interest rate liberalization accelerates; focus on the direction of banks' net interest margins Positive/Negative Outlook 1. Fed, ECB to announce rate decisions this week Type: Policy Focus Bank J. Safra Sarasin: European and US central banks need not rush to raise rates in October; both expected to keep rates unchanged; Fed may raise by 25 basis points in December 2. Industrialization of physical AI and edge-side applications advances Type: Institutional Hot Comment CITIC SEC: Attention on physical AI and edge-side applications is heating up; recommend capturing opportunities along three threads: Siasun Robot&Automation capability upgrades, expanding data collection demand, and edge-side entry innovation 3. 26Q4 Siasun Robot&Automation sector catalysts Type: Market Discussion Guotou Securities machinery team: 26Q4 Siasun Robot&Automation sector catalysts are dense; sector allocation may usher in an important window Announcement Briefs Positive announcements 1. China Aluminum International Engineering Corporation: Wins bid for Vietnam's 2.4 million-ton-per-year alumina project, total contract price US$833 million, about RMB5.595 billion 2. SPIC Industry-Finance Holdings: Actual controller State Power Investment Corporation plans to increase holdings by RMB200 million to RMB300 million 3. Hangzhou Changchuan Technology: Plans to repurchase shares, total funds RMB50 million to RMB100 million Negative announcements 1. Shanghai Supezet Engineering Technology Corp., Ltd.: Stock may face delisting risk due to market value below RMB300 million, tenth risk warning 2. Palm Eco-Town Development: Subsidiary signs "Settlement Agreement" and major litigation progress 3. Jiangsu Cnano Technology Co.,Ltd.: Downward revision of the conversion price of "Tiannai Convertible Bonds" Overseas Markets The three major US stock indices closed higher collectively, with the Nasdaq up 0.82%, the S&P 500 up 0.7%, and the Dow up 0.29%. A recovery in AI-related trading drove chip stocks higher, with the Philadelphia Semiconductor Index up 2.8%; Broadcom and institutions including Bank of America and Blackstone established a US$63 billion AI financing arrangement. Among individual stocks, SK Hynix rose more than 4%, Lumentum rose more than 8%, Tesla rose 5.21%, and Apple fell 1.10%. Among Chinese concept stocks, 21Vianet rose 6.59% and Hesai rose 4.04%.