A-share Pre-market Brief | Dow rises 3.03%, AI hardware slumps, oil prices drop over 8%

Pre-market Brief 1. U.S. stocks diverge sharply: Dow rises 3.03%, mega-cap tech surges while AI hardware slumps Type: Market Sentiment impact: Neutral The three major U.S. indices closed higher collectively on November 4, with the Dow up 3.03%, the Nasdaq up 1.44%, and the S&P 500 up 1.58%. Mega-cap tech led gains, with Microsoft and Amazon up over 6% and Apple up over 5%; AI hardware and semiconductors bucked the trend, with Seagate Technology down over 8%, Micron Technology and SanDisk down 7%, Western Digital down over 6%, CoreWeave down over 9%, and Marvell Technology and Lumentum down over 7%. The divergence stemmed from two opposing expectation threads: House Democratic Leader Jeffries said he would push legislation to terminate tariff measures and end the Iran war, pulling tariff and energy cost expectations lower in tandem; while Qualcomm guided next fiscal quarter EPS to $2.15 to $2.35, with the midpoint below the analyst estimate of $2.32, sending shares down over 5% after hours. 2. International oil prices plunge, with both WTI and Brent down over 8% intraday Type: Market Sentiment impact: Negative International oil prices fell sharply on November 4, with WTI and Brent crude futures both down more than 8% intraday; WTI briefly fell below $88/barrel and Brent below $95/barrel. The SHFE crude oil futures 2612 contract settled down 7.07% in night trading at RMB628.40/barrel; SHFE gold settled up 2.61% and SHFE silver up 4.80% in night trading. The trigger was the Democratic leader's pledge to push for an end to the Iran war, which pulled geopolitical risk premiums lower. Falling oil prices compress revenue in oil exploration and oilfield services, while reducing fuel and feedstock costs for downstream sectors such as aviation and chemicals. 3. Central bank conducts RMB300 billion outright reverse repo today, with a 3-month term Type: Macro Sentiment impact: Positive The central bank announced on November 4 that, to keep banking system liquidity ample, it will conduct an RMB300 billion outright reverse repo operation on November 5, 2026, via fixed-quantity, rate-based tender with multiple-price allotment, with a term of 3 months (91 days) and a maturity date of February 4, 2027, extended for holidays. Today also sees RMB115 billion of 7-day reverse repos and RMB500 billion of 3-month outright reverse repos mature. Outright reverse repos have longer terms than 7-day reverse repos, injecting medium-term liquidity that spans quarters. 4. Global DRAM contract average price hits another all-time high in October; NAND holds at highest level Type: Industry Sentiment impact: Positive In October, the global DRAM contract average price refreshed its all-time high again, while NAND flash average prices held at last month's highest level. DRAM and NAND contract prices are the pricing benchmark for memory makers' and module makers' shipments in the next quarter; rising prices directly lift their revenue and gross margins, while pushing up bill-of-materials costs for servers, phones, PCs and other finished devices. On the same day, U.S. memory stocks fell against the trend, with Seagate Technology down over 8%, Micron Technology and SanDisk down 7%, and Western Digital down over 6%, a divergence between prices and share prices. Investment Calendar November 5November 10: The 9th China International Import Expo is held in Shanghai Institutional Views 1. Guotai Haitong: The new policy on existing-home sales raises development thresholds and accelerates the contraction of new-home supply, promoting long-term industry stability. 2. Guotou Securities: The ChiNext Index's pullback has reached the 60% limit of its range gain, and conditions for a major rebound are building. 3. Guosheng: The 10-year government bond yield breaking below 1.6% does not mean the bond market rally is over; rates still have room to fall further at year-end and early next year. Catalyst Outlook 1. Policy path after the U.S. midterm election "blue wave" materializes Type: Policy focus CITIC SEC: More aggressive policy changes still need to wait for the 20282029 presidential election and transition cycle; the impact of state-level elections on data center construction is more worth tracking. 2. Shaanxi plans to include system operation fees in time-of-use electricity price floating, widening peak-valley spreads Type: Policy focus EB SECURITIES: Lower charging costs and higher discharge value for energy storage create a double benefit, and project returns are expected to increase markedly. 3. Quantum technology ranked first among six future industries; the "15th Five-Year Plan" may mark an industrialization inflection point Type: Institutional hot take Huafu Securities: Laser systems are indispensable core components in the three major fields of quantum computing, quantum communication and quantum precision measurement. Announcement Briefs Positive announcements 1. Chaozhou Three-Circle (Group): Plans to repurchase RMB500 million to RMB1 billion of shares, with a repurchase price cap of RMB100/share 2. Asymchem Laboratories: Plans to repurchase RMB500 million to RMB700 million of shares for an employee stock ownership plan or equity incentives and cancellation 3. Hengtong Optic-Electric: Controlling shareholder Hengtong Group plans to increase holdings by RMB400 million to RMB600 million within 12 months Negative announcements 1. Tianshan Material: Under CSRC investigation on suspicion of information disclosure violations 2. Jiangsu Leili Motor: Actual controller, director and general manager Su Da is under CSRC investigation on suspicion of information disclosure and share reduction violations 3. Hunan Hualian China Industry: Shareholder holding more than 5%, Xinhualian Asia, mistakenly reduced 182,400 shares and was ordered by the Hunan Securities Regulatory Bureau to buy back the shares and remit the price difference Overseas Markets The three major U.S. indices closed higher collectively on November 4, with the Dow up 3.03%, the Nasdaq up 1.44%, and the S&P 500 up 1.58%. The House Democratic leader pledged to push for terminating tariffs and ending the Iran war, pulling energy and tariff cost expectations lower, with funds rotating out of AI hardware into consumer, financial and software names. Memory and optical communications weakened against the trend, with Seagate Technology down over 8%, Micron Technology down 7%, and Lumentum down over 7%. The Livermore China Concept Leaders Index rose 1.7%, with KE Holdings and Bilibili up over 5% and Alibaba up over 4%.