A-share midday report | ChiNext Index rose 2.49% in half a day, technology stocks rebounded significantly, and precious metal sector weakened.

On October 20th, A-shares and Hong Kong stocks rebounded across the board, with over 4200 stocks in the A-share market trading higher. The half-day turnover was 1.16 trillion yuan, a decrease of 16.5 billion yuan from the previous trading day. By midday close, the Shanghai Composite Index rose by 0.69%, the Shenzhen Component Index rose by 1.38%, and the ChiNext Index rose by 2.49%. As for Hong Kong stocks, the Hang Seng Index rose by over 2%, and the Hang Seng Tech Index surged nearly 4%. Market analysis believes that three major positive news boosted the market: 1. Release of heavyweight economic data. China's GDP grew by 5.2% year-on-year in the first three quarters, and the National Bureau of Statistics stated that the economy maintained steady progress in the first three quarters, achieving positive results in high-quality development. 2. Easing of trade tensions. The trade heads of China and the US held a video call and agreed to hold a new round of negotiations as soon as possible. In addition, Trump continued to send signals of easing in the latest interview. 3. Tech stocks received multiple positive news. Industrial research reports indicated that overseas major clients recently increased their 2026 1.6T optical module procurement plans. Since October, research achievements in the chip field of domestic universities have surged. UBS upgraded Chinese tech stocks to "most attractive". On the market, tech stocks rebounded significantly, with CPO and other computational power hardware leading the gains. The semiconductor sector rose, with Tangshan Sunfar Silicon Industries hitting four consecutive limit-up levels. Siasun Robot & Automation sector strengthened again, with Zhongshan Broad-ocean Motor hitting the limit-up. Additionally, sectors like consumer electronics, brain-computer interfaces, and quantum technology also showed positive performance. In other hotspots, the Hainan free trade concept continued its strength from the previous week, while coal stocks remained active. Looking ahead, Zhongtai believes that with multiple factors intertwining on the policy and fundamental level, there is potential to boost market confidence. They recommend continuing to focus on the two major trends of non-ferrous metals and technology growth. Popular Sectors: 1. Computational power hardware stocks rebounded. 2. Hainan free trade concept showed strength. 3. Siasun Robot & Automation sector gained momentum. 4. Coal sector continued its strength. Institutional Views: Industrial: Focus on domestic certainty. Zhongtai: Policy and fundamentals intertwine to boost confidence. Orient: Market may test around 3800 points this week.