Pre-market report on A shares | Concerns about high valuations trigger selling in US stocks! Cryptocurrencies and commodities fall collectively

Pre-market News 1. Big short sellers heavily short AI and overvaluation of US stocks raises concerns! Global asset prices plummet, tech stocks see significant pullback Type: Market Sentiment Impact: Negative Overnight, the US stock market made significant adjustments, with the Nasdaq falling by 2%, Nvidia dropping by nearly 4%, and Chinese concept stocks index dropping by over 2%; Cryptocurrencies continue to collapse, with Bitcoin falling by nearly 6%, Ethereum plummeting by 10%, and crude oil and commodities collectively declining. Goldman Sachs and Morgan Stanley CEOs issued warnings, stating that US stock valuations are too high, and a minimum of 10% correction may occur; well-known short sellers have bought put options on Palantir and Nvidia in the third quarter, and the US government shutdown has also increased market uncertainty. 2. The central bank has resumed government bond transactions in October, carrying out a 700 billion yuan reverse repurchase operation today Type: Macro Sentiment Impact: Positive The central bank announced that on November 5th, it will conduct a 700 billion yuan reverse repurchase operation through fixed quantity, bidding at a fixed rate, and multiple price bidding approach, in addition, the central bank net invested 20 billion yuan through open market government bond transactions in October. Experts believe that the central bank's resumption of government bond transactions sends a dual signal of stabilizing growth and expectation. 3. 9 days! "The longest" Spring Festival holiday sparks travel enthusiasm, with a 63% increase in flight bookings compared to the same period last year Type: Industry Sentiment Impact: Positive The 2026 holiday schedule has been released, and the 2026 Spring Festival holiday will last from February 15th to February 23rd, a total of nine days. Following this announcement, flight bookings for the 2026 Spring Festival have increased by 63% compared to the same period in 2025. For the tourism sector, Guosheng Securities pointed out the importance of focusing on third-quarter performance certainty and the elasticity of the Spring Festival peak season sub-sectors. 4. The US Senate failed to pass the appropriations bill, and the federal government's "shutdown" is set to break records Type: Macro Sentiment Impact: Negative The US Senate once again failed to pass a temporary appropriations bill for the federal government. This means that the current round of federal government "shutdown" that started on October 1st is about to break the record of the 35-day "shutdown" from the end of 2018 to the beginning of 2019, becoming the longest "shutdown" in US history. Investment Calendar The 8th China International Import Expo Investment Tips Investment Tips: Be patient, be selective, say no to almost all stocks. Take advantage of market sentiment fluctuations and buy stocks at prices below their intrinsic value. Green "Richer, Wiser, Happier" Institutional Views 1. GF SEC: In November, the correlation between market fluctuations and fundamentals is weakest, positioning in low positions, undervalued, and sectors with rising profits. 2. East Money Information: The Shanghai Composite Index continues to fluctuate around 4000 points, focusing on artificial intelligence, biotechnology, and other main themes. 3. Zheshang: The Double Innovation Index is currently in a weak oscillating pattern, paying attention to relatively low positions in steel, consumer, and other sectors. Positive and Negative Prospects 1. Discussing the direction of 6G standards! The 2025 6G development conference will open in Beijing on November 13 Type: Market hot topic Huafu Securities: 2025 is the first year for setting 6G standards, and it is expected to enter the commercialization stage after 2029. China has already launched multiple policies to support the development of the 6G industry, focusing on constructing key parts of the 6G integrated space-air-ground information network and satellite internet. 2. The National Health Commission and five other ministries have issued the Implementation Opinions on the Development of "Artificial Intelligence + Medical Health" applications Type: Policy focus Huayuan Securities: AI medical care is based on core data, algorithms, and computing power, with medical equipment, consumables, software as carriers, and the market size of domestic AI in medical institutions is expected to reach 224.4 billion by 2033, with a compound growth rate of 43.1% from 2023 to 2033. 3. The China Surveying and Mapping Geographic Information Conference is about to be held, with institutions stating that the prospects for Beidou navigation applications are vast Type: Market hot topic Huatai: China's Beidou navigation application industry has great prospects, with increased demand from smartphones, consumer electronics, and special industries. Core manufacturers of upstream key components, terminal equipment manufacturing, software services, and applications are expected to realize performance growth. Announcement Express Positive Announcements 1. Sichuan Biokin Pharmaceutical: Innovative biotech drug T-Bren has been included in the list of breakthrough therapeutic drugs 2. Haichuang Pharmaceutical: Clinical phase II trial of a drug for metabolic fatty liver disease completed with the first batch of participants enrolled 3. Warom Technology Incorporated: Plans to repurchase shares worth 40-125 million yuan Negative Announcements 1. Thinkon Semiconductor Jinzhou Corp.: Shareholder More Shining Lighting plans to reduce its stake by no more than 2% of the company's shares 2. Bloomage Biotechnology Corporation Limited: China Life Chengda plans to reduce its stake by 2% Overseas Markets Self-selected insights: Consensus on the downturn in US stocks is rising, AI bubble raises valuation concerns, the three major indices collectively closed lower; Risk assets are falling across the board, with Bitcoin and Ethereum both experiencing large declines; Popular Chinese concept stocks are generally declining.