A-share Market Close | Shanghai Composite Index Rises 2.16%, STAR 50 Gains 9.92%, Semiconductors Lead Gains

On November 4, A-shares opened mixed, fluctuated at low levels in the morning, rallied unilaterally in the afternoon, and closed with all five major indices posting sharp gains, with the Shanghai Composite Index closing at its intraday high. As of the close, the Shanghai Composite Index rose 2.16% to 3,686.17 points, the Shenzhen Component Index rose 4.22% to 11,335.69 points, the ChiNext Index rose 6.40% to 2,544.73 points, the STAR 50 rose 9.92% to 1,265.47 points, and the BSE 50 rose 4.56% to 894.08 points. Combined turnover of the Shanghai and Shenzhen markets was RMB2.037692 trillion, up RMB334.255 billion from the previous trading day. In the Shanghai and Shenzhen markets, 4,667 stocks advanced, 779 declined, and 132 were flat, of which 123 hit the daily limit up and 11 hit the daily limit down, with advancing stocks accounting for about 83%. By sector, semiconductors, electronic chemicals, precious metals, components, communication equipment, and medical services led the gains; baijiu, beverages and dairy products, large state-owned banks, condiment fermentation products, coal mining, and insurance led the declines. Drivers On November 2, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission successively held symposiums on securities, fund, and insurance company swap facilities and on stock repurchase and increased shareholding relending. The CSRC disclosed three arrangements the same day in a question-and-answer format: adjusting and optimizing pro-market repurchase rules, guiding the first batch of 18 active ETFs to accelerate position building, and optimizing margin trading risk control indicators. On November 3, the PBOC announced the launch of the third batch of swap facility operations totaling RMB100 billion, with 31 securities companies and fund management companies participating in the bidding and a winning rate of 10bp. On November 4, 24 brokers confirmed winning bids in the third batch of swap facilities, with disclosed amounts totaling more than RMB40 billion, including CITIC SEC and Guotai Haitong at RMB10 billion each; multiple institutions said the funds will be used to increase holdings of stocks and stock ETFs. On the market, the STAR 50's 9.92% gain and the ChiNext Index's 6.40% gain formed a clear gradient with the Shanghai Composite's 2.16% rise. Semiconductors rose 11.41%, electronic chemicals II rose 10.55%, precious metals rose 10.06%, components rose 9.14%, and communication equipment rose 8.91%, leading the gains, while baijiu II fell 2.05%, beverages and dairy products fell 1.98%, and large state-owned banks II fell 1.85%, lagging behind. Combined turnover of the Shanghai and Shenzhen markets returned above RMB2 trillion, with 4,667 stocks advancing and 123 hitting the daily limit up. On the news front, CXMT Corporation announced in the morning of November 4 that Chairman Zhu Yiming proposed raising the repurchase amount range from RMB1 billionRMB2 billion to RMB2.5 billionRMB5 billion; Zhongji Innolight disclosed a record of investor relations activities on the evening of November 3, stating that the vast majority of overseas customers have not revised down demand or orders and that the vast majority of orders for 2027 already cover the full year; spot gold returned above US$4,000/oz in the afternoon, up more than 2% intraday, while the dollar index fell 0.4% to 101.50; SEMI forecast global semiconductor equipment sales of US$165.9 billion in 2026, up 23.2% year on year. Hot sectors 1. [Semiconductor equipment and materials] The SW semiconductor index rose 11.41%, ranking first among SW level-2 industries; the sputtering target concept rose 13.29%; Konfoong Materials International, Piotech Inc., Beijing Jingyi Automation Equipment, Kingsemi Co., Ltd., and Beijing Huafeng Test & Control Technology all hit the 20CM daily limit up; NAURA Technology Group and TongFu Microelectronics hit the 10% daily limit up; CXMT Corporation rose 13.63%. On the catalyst side, CXMT Corporation announced in the morning of November 4 that Chairman Zhu Yiming proposed raising the repurchase amount range from RMB1 billionRMB2 billion to RMB2.5 billionRMB5 billion, the largest single repurchase on the STAR Market to date; Shanghai Securities News statistics showed that as of November 4, 42 STAR Market semiconductor companies had disclosed repurchase plans in 2026, with a combined upper limit of RMB13 billion, of which 24 were disclosed since October, with a combined upper limit of RMB10.65 billion. 2. [Computing power hardware] Communication equipment rose 8.91% and components rose 9.14%; Eoptolink Technology Inc. rose 13.35%, Zhongji Innolight rose 11.07%, and Suzhou TFC Optical Communication rose 10.02%. On the catalyst side, Zhongji Innolight disclosed a record of investor relations activities on the evening of November 3, making clear that the vast majority of overseas customers have not revised down demand or orders, some customers have product structural adjustments, and some customers' 1.6T demand has even increased somewhat; it also said rumors that a foreign brokerage downgraded its rating were false content spread by someone impersonating the brokerage. 3. [Precious metals] The SW precious metals index rose 10.06%; Beijing XIAOCHENG Technology Stock hit the 20CM daily limit up; Shanjin International Gold, Chifeng Jilong Gold Mining, Hunan Gold Corporation, and Zhaojin International Gold hit the daily limit up. On the catalyst side, spot gold returned above US$4,000/oz in the afternoon, up more than 2% intraday, while the dollar index fell 0.4% to 101.50; the World Gold Council released its Q3 Global Gold Demand Trends report on November 3, showing that global central banks and other official institutions added a net 321 tonnes to gold reserves in Q3, up 42% year on year, the highest quarterly level since Q4 2024. Adjusting sectors Among SW level-2 industries, baijiu II fell 2.05%, beverages and dairy products fell 1.98%, large state-owned banks II fell 1.85%, condiment fermentation products II fell 1.09%, coal mining fell 1.08%, insurance II fell 1.01%, and food processing fell 1.00%; among SW level-1 industries, banks fell 0.84%. By stock, Jiangxi Sunshine Dairy, Jiangsu Aoyang Health Industry, ZheJiang YanKon Group, and Baiyang Investment Group, Inc. hit the daily limit down; Gansu Huangtai Wine-Marketing Industry touched the daily limit-up price of RMB18.88 intraday before pulling back and closed down 4.66%; Shanxi Xinghuacun Fen Wine Factory fell 3.07% and Anhui Gujing Distillery fell 3.58%. Baijiu II had risen 11.13% cumulatively over the four trading days from October 29 to November 3, while beverages and dairy products rose 7.98% over the same period, leading the declines that day.