A-share Market Open Brief | All three major indices open higher; consumer and brokerage sectors strengthen

On November 2, the Shanghai Composite Index opened 0.42% higher at 3,614.31 points, the Shenzhen Component Index opened 0.59% higher at 10,897.50 points, and the ChiNext Index opened 1.05% higher at 2,439.08 points. The STAR 50 opened 2.13% higher at 1,185.51 points. As of 9:33, a total of 2,190 stocks in the Shanghai and Shenzhen markets were up, 3,160 were down, and 227 were flat. Top gainers: hotels and catering, small household appliances, baijiu, electronic chemicals, minor metals, securities, etc.; top decliners: precious metals, oilfield services and engineering, film and theater chains, publishing, industrial metals, petroleum and petrochemicals, etc. Market Overview The three major indices all opened higher, with growth-oriented indices posting larger gains: the STAR 50 opened 2.13% higher, the ChiNext Index opened 1.05% higher, and the Shanghai Composite opened 0.42% higher. After the open, the indices diverged: the Shanghai Composite, ChiNext Index, and STAR 50 all pulled back from their opening levels, while the Shenzhen Component probed higher early in the session and at 9:33 was still slightly above its opening price; the Shanghai Composite and STAR 50 at one point fell back below the flatline. As of 9:33, the Shanghai Composite was up 0.14% at 3,604.22 points, the Shenzhen Component was up 0.62% at 10,900.87 points, the ChiNext Index was up 0.79% at 2,432.68 points, and the STAR 50 was up 0.37% at 1,165.14 points. Sectors showed a pattern of consumer and policy-beneficiary directions leading gains. Hotels and catering rose 3.93%, small household appliances rose 2.91%, baijiu rose 2.13%, electronic chemicals rose 1.80%, minor metals rose 1.56%, and securities rose 1.40%. Precious metals, oilfield services and engineering, film and theater chains, publishing, industrial metals, and petroleum and petrochemicals were among the top decliners, with precious metals dragged down by spot gold falling below US$3,900 to a one-year low. The computing power hardware direction, which led declines in the previous trading session, rebounded briefly after the open, with communications equipment and semiconductors both opening about 2% higher, after which their gains narrowed significantly. Trading volume and market breadth diverged. As of 9:33, 21 stocks in the Shanghai and Shenzhen markets hit the daily limit up and 13 hit the limit down; advancers accounted for 39% of the whole market, while decliners at 3,160 still outnumbered advancers at 2,190. The indices holding above the flatline were mainly supported by consumer, brokerage, and some heavyweight directions, while individual stocks had yet to follow the recovery. Overnight News at a Glance 1. US stocks closed broadly lower: on October 30, the Dow fell 1.09% to 51,770.31 points, the Nasdaq fell 2.86% to 25,437.00 points, and the S&P 500 fell 1.82%; the Philadelphia Semiconductor Index fell more than 7%, Intel plunged more than 28%, and spot gold fell below US$3,900 to a one-year low. 2. Macro and liquidity: the October manufacturing PMI was 49.3%, down 0.8 percentage points from the previous month; the central bank announced that starting November 2 it will conduct overnight reverse repo tenders every working day at an operating rate of 1.25%, and that 7-day reverse repos will switch to fixed-quantity, rate-based tenders with multiple-price allotment. 3. Three departments meet: on November 2, the central bank, the National Financial Regulatory Administration, and the CSRC convened banks to study optimizing the relending policy for stock buybacks and increased holdings, and on the same day held discussions with securities firms and fund companies on promoting the use of capital market support tools; according to market reports, a major state-owned bank plans to add special loan quotas for stock buybacks and increased holdings to China Reform Holdings and China Chengtong, potentially reaching RMB100 billion for each, which has not yet been confirmed by the bank. Trend Assessment On October 30, the Shanghai Composite fell 1.44% and lost the 3,600-point level, the ChiNext Index fell 4.13%, and the STAR 50 fell 5.48% to a new low for the year; turnover in the two markets was RMB1.674463 trillion, more than 4,600 stocks declined, and capital shifted to defensive positioning. Externally, the Nasdaq fell 2.86% and the Philadelphia Semiconductor Index fell more than 7%, with doubts over the returns on artificial intelligence capital expenditure persisting; internally, the October manufacturing PMI fell back to 49.3%, the central bank launched overnight reverse repo tenders every working day, and the three departments held discussions on supporting capital market tools. The institutional consensus leans toward conditions for an oversold rebound having improved and the current level not warranting excessive pessimism, but confirmation of a bottom still requires incremental support from market-stabilization funds, with short-term trading likely to focus on range-bound repair.