A-share Midday Review | Shanghai Composite Index rebounds after hitting lows, down 0.30%; liquor and CRO sectors buck the trend and strengthen

On October 30, the three major A-share indices opened sharply lower across the board (the Shanghai Composite opened down 1.25%, the Shenzhen Component down 2.40%, and the ChiNext Index down 3.29%). In early trading, the Shanghai Composite briefly fell below 3600 points (to a low of 3595.26), then fluctuated upward and its decline continued to narrow, with the market showing a pattern of "indices bottoming and rebounding, more stocks falling than rising, and high-low switching." As of the midday close, the Shanghai Composite was down 0.30% at 3640.54, the Shenzhen Component was down 0.58% at 11073.08, and the ChiNext Index was down 1.18% at 2487.91; the Shanghai Composite and Shenzhen Component both closed the half-day session at their highest levels of the day. Across the Shanghai and Shenzhen markets, 2,819 stocks fell, 2,522 rose, and 236 were flat, with 45 hitting the daily limit up and 18 hitting the limit down. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets totaled RMB1.0182 trillion, RMB21.5 billion more than the same period on the previous trading day. On the capital flow side, in the morning session main funds recorded net inflows into food and beverage, pharmaceuticals, and shipping and ports sectors, and net outflows from electronics, computers, and telecommunications, with the electronics sector seeing net outflows of more than RMB3.1 billion. Market Overview On the board, to the upside, hotels and catering rose 3.86%, shipping and ports rose 3.01%, medical services rose 2.97%, and baijiu II rose 2.13%, ranking among the top gainers among Shenwan level-2 industries; to the downside, television broadcasting fell 3.82%, digital media fell 3.67%, film and cinema lines fell 3.57%, and gaming fell 2.93%, ranking among the top decliners. Overall, with U.S. tech stocks weakening overnight, computing-power hardware names opened lower in tandem; funds then rotated toward low-level defensive and domestic-demand sectors, with baijiu, pharmaceuticals, and shipping attracting fund support, narrowing the indices' declines, though at the individual stock level decliners still outnumbered advancers. Hot Sectors 1. Baijiu sector opens higher against the trend and strengthens through the session Gansu Huangtai Wine-Marketing Industry, Anhui Gujing Distillery, and Anhui Yingjiagongjiu hit the daily limit up, Luzhou Laojiao rose 8.35%, Jiangsu King's Luck Brewery Joint-Stock rose 5.92%, Shanxi Xinghuacun Fen Wine Factory rose 4.46%, and Kweichow Moutai rose 1.29%. The baijiu II index rose 2.13% in the half-day session, opening up 0.42% in the morning (previous close 36786.76, open 36940.51), with the intraday low of 36789.83 still above the prior close, and it never turned negative during the session. At the individual stock level, Gansu Huangtai Wine-Marketing Industry opened down 0.39% and Jiangsu King's Luck Brewery Joint-Stock opened down 0.10%, while Anhui Gujing Distillery, Anhui Yingjiagongjiu, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine Factory, and Kweichow Moutai opened up 0.46%, 1.66%, 2.77%, 0.83%, and 0.66%, respectively. Comment: On the evening of October 29, seven baijiu stocks including Anhui Yingjiagongjiu, Anhui Gujing Distillery, and Luzhou Laojiao collectively disclosed their third-quarter reports, with significant divergence in single-quarter results. Anhui Yingjiagongjiu's Q3 revenue was RMB1.413 billion, up 4.25% year on year, with net profit attributable to shareholders of RMB414 million, up 8.58% year on year and up 26.46% quarter on quarter; for the first three quarters, revenue was RMB4.829 billion and net profit RMB1.575 billion, up 6.93% and 4.25% year on year, respectively. Anhui Gujing Distillery's Q3 revenue was RMB2.639 billion, up 3.69% year on year, turning positive for the quarter after Q1 and Q2 revenue fell 18.59% and 43.27% year on year, respectively, but net profit attributable to shareholders was only RMB95.4493 million, down 68.04% year on year; for the first three quarters, revenue was RMB12.770 billion, down 22.25% year on year, and net profit was RMB2.260 billion, down 42.94% year on year, and the company disclosed its 2026 interim profit distribution plan the same day. Luzhou Laojiao's Q3 revenue was RMB4.195 billion and net profit attributable to shareholders was RMB1.332 billion, up 71.45% and 111.12% quarter on quarter, respectively, but for the first three quarters revenue was RMB14.668 billion, down 36.58% year on year, and net profit was RMB5.671 billion, down 47.31% year on year, with Q3 single-quarter net profit down about 57% from RMB3.099 billion in the same period last year. Overall, the baijiu third-quarter reports show a pattern of "net profit generally declining for the first three quarters, with quarter-on-quarter improvement in the single quarter," with the high quarter-on-quarter growth mainly coming from the low base in the second quarter. 2. CRO concept and medical services sectors bottom and rebound Bide Pharmatech hit the 20cm daily limit up, Jiangsu Aoyang Health Industry and Henan Lingrui Pharmaceutical hit the daily limit up, Anhui Wanbang Pharmaceutical Technology rose 17.46%, Shanghai Haoyuan Chemexpress rose 14.04%, and ChemPartner PharmaTech rose 13.77%. Comment: On October 29, Eli Lilly reported Q3 results, with net profit of US$6.451 billion, up 16% year on year, above market expectations, with Mounjaro and Zepbound revenue up 65% and 49%, respectively, and full-year revenue guidance raised to US$91 billion to US$92 billion. Domestic CXO third-quarter reports delivered in tandem: Bide Pharmatech's net profit attributable to shareholders for the first three quarters was RMB164 million, up 36.92% year on year, with Q3 single-quarter net profit of RMB60.631 million, up 30.87% year on year; ChemPartner PharmaTech's Q3 net profit attributable to shareholders was RMB17.6697 million, up 196.60% year on year, turning profitable for the quarter, with first-three-quarter revenue of RMB947 million, up 15.97% year on year. 3. Port and shipping sector active Shanghai Jinjiang Shipping hit the daily limit up, COSCO Shipping Holdings rose 6.78%, and Shanghai International Port rose 5.11%. Comment: On October 29, Maersk announced an increase in freight rates on the Far East to Northern Europe and Mediterranean routes, with the new rates effective from November 16; since mid-October, CMA CGM, Maersk, Hapag-Lloyd, and MSC have successively announced that from October 19 they would raise FAK rates to US$4,2004,500/FEU. COSCO Shipping Holdings' Q3 revenue was RMB75.692 billion, up 29.39% year on year, with net profit attributable to shareholders of RMB17.230 billion, up 80.73% year on year and up 128.45% quarter on quarter, and first-three-quarter net profit attributable to shareholders of RMB30.649 billion, up 13.22% year on year. On October 29, the BDI stood at 2712 points, up 2.26% from the previous reading, and the BCI rose 5.25% in a single day to 4090 points. 4. Copper-clad laminate and PCB concepts opened lower in early trading, then surged quickly Goldenmax International, Sunshine Global Circuits, Ji'an Mankun Technology, Changzhou Aohong Electronics, and Epoxy Base Electronic Material Corporation hit the daily limit up, and Guangdong Ellington Electronics Technology rose 6.74%. The copper-clad laminate concept rose 4.50% in the half-day session, after falling 7.29% the previous trading day; the PCB concept rose only 0.48% in the half-day session. Both sectors opened lower in early trading before rallying: the copper-clad laminate concept opened at 801.74, down 5.00% from the previous close, and the PCB concept opened at 1935.45, down 3.13%. Individual stock activity was notably stronger than the sector index gains. Comment: In mid-October, during the TPCA Show, the Taiwan Printed Circuit Association (TPCA) said that what was originally tightness only in high-end materials such as Low CTE cloth, Low Dk2, and HVLP4 has now spread to CCL, high-end PCB, ABF substrates, process equipment, and consumables, with some mid- and low-end materials also seeing longer lead times or price increases, and it estimates that supply chain tightness will last at least until 2027. Cailian Press monitoring data show that Goldenmax International saw net main-fund buying of more than RMB600 million in the morning session, ranking first across the two markets.