A-share Market Open Brief | Tech hardware sector leads gains, all three major indices open higher

Opening Data On October 27, the Shanghai Composite Index opened 0.02% higher at 3,698.44 points, the Shenzhen Component Index opened 0.49% higher at 11,591.36 points, and the ChiNext Index opened 0.89% higher at 2,661.71 points. The STAR 50 opened 0.86% higher at 1,326.76 points. As of 9:40, a total of 3,471 stocks in the Shanghai and Shenzhen markets were up, 1,795 were down, and 311 were flat, with 24 hitting the daily limit up and 5 hitting the daily limit down. Advancers accounted for 62% of the total. Top gainers: electronic chemicals, non-metallic materials, components, communications equipment, ceramic substrate concept, optical chip concept, etc.; top decliners: film and cinema chains, white goods, large state-owned banks, coal mining, etc. Market Overview The three major indices all opened higher, with growth stocks clearly outperforming the main board. After the open, the Shanghai Composite's gain briefly widened to 0.29% at 3,708.20 points, then fluctuated and gave back gains, standing at 3,697.61 points as of 9:40, essentially back to flat; the Shenzhen Component rose 0.54% to 11,596.79 points, the ChiNext Index rose 0.78% to 2,658.78 points, and the STAR 50 rose 0.20% to 1,318.16 points, still below its opening level of 1,326.76 points. Combined turnover of the two markets was RMB229.154 billion. At the sector level, electronic chemicals, non-metallic materials, components, and communications equipment led gains, echoing the strength in overseas memory and optical communications sectors overnight; large state-owned banks, which surged 2.24% in the previous trading session, fell 0.64%, while coal mining and white goods also edged lower, as funds rotated back from dividend plays to tech hardware within a stock-market game. The ceramic substrate concept rose 1.97% and the optical chip concept rose 1.91%, with the passive components supply chain active across the board. Overnight News at a Glance All three major U.S. indices rose, with the Philadelphia Semiconductor Index up 2.82%: On October 26, the Dow rose 0.28% to 52,361.58 points, the Nasdaq rose 0.82% to 26,169.38 points, the S&P 500 rose 0.70% to 7,676.77 points, and the Philadelphia Semiconductor Index rose 2.82%, its largest single-day gain since September 21. Memory and optical communications sectors led gains, with SK Hynix up more than 4%, Western Digital up more than 3%, Micron Technology up nearly 3%, Lumentum up more than 8%, and Coherent up more than 5%. The December contract for New York crude oil futures settled down 1.46% at $101.76. PBOC establishes a swap facility for large non-bank redemptions in the bond market: The PBOC announced on October 26 that, under specific scenarios where asset management institutions face herd liquidity risk and the bond market comes under systemic pressure, it will support systemically important bank wealth management subsidiaries and public fund managers (or their corresponding parent banks, securities parent companies, etc.) in borrowing PBOC bills from the central bank for market repo financing, to purchase eligible bonds or product shares of public products of their own company (or asset management subsidiary) that have faced redemptions, and pledge them to the PBOC. Shanghai sets a target of exceeding RMB80 billion in satellite internet industry scale by 2030: The Shanghai Municipal Commission of Economy and Informatization and five other departments issued the "Shanghai Satellite Internet Industry Innovation and Development Action Plan (2027-2030)," proposing that by 2030 the total number of satellites in orbit exceed 3,000, more than 100 high-quality enterprises and other entities be cultivated, more than 100 benchmark demonstration applications be built, and the core industry scale exceed RMB80 billion. Trend Analysis In the previous trading session, the Shanghai Composite closed up 0.19%, while the Shenzhen Component and ChiNext Index fell 1.19% and 1.71%, respectively, as heavyweight and dividend stocks propped up the index while computing hardware and semiconductors corrected, with components down 6.79%, optical communications down 3.70%, memory down 3.62%, and semiconductors down 3.55%. Overnight, all three major U.S. indices rose, with the Philadelphia Semiconductor Index rebounding 2.82%, led by memory and optical communications sectors. BOC International believes that the core contradiction in this round of adjustment since October lies overseas rather than in domestic fundamentals; the dual verification of AI sector earnings delivery and capex expectations are the two core drivers of this global equity downturn and A-shares' follow-on decline. Short-term oversold characteristics are clear, but a rebound still needs to wait for validation windows such as third-quarter reports and the Federal Reserve's interest rate meeting. Huatai cautioned that market sentiment has entered a clearing zone and support from stabilization funds is strengthening, but the return of trading funds still takes time, and short-term moves are better viewed as oversold rebounds. Structurally, tech hardware and edge-side applications may remain active; the pullback in dividend sectors means funds are still rotating within existing stock, and index elasticity still depends on whether turnover can expand.