A-share Market Open Brief | All three major indices open lower, computing power and storage sectors lead declines, coal and banking sectors resist downturn.

Opening Data On October 13, the Shanghai Composite Index opened 0.96% lower at 3760.80 points, the Shenzhen Component Index opened 1.79% lower at 12163.23 points, and the ChiNext Index opened 2.18% lower at 2899.15 points. The STAR 50 opened 2.61% lower at 1389.53 points. As of 9:35, a total of 438 stocks in the Shanghai and Shenzhen markets rose, 5,011 fell, and 125 were flat. Top gainers: coke, planting, coal mining, white goods, state-owned large banks, etc.; top decliners: CPO concept, semiconductors, computing power hardware, memory chips, lithium batteries, etc. Market Conditions As of 9:35, the four indices extended weak fluctuations after opening lower. The Shanghai Composite Index stood at 3760.64 points, down 0.96%; the Shenzhen Component Index stood at 12161.19 points, down 1.81%; the ChiNext Index stood at 2893.15 points, down 2.38%; and the STAR 50 stood at 1392.22 points, down 2.42%. Structurally, there was a clear divergence between value and growth. The coal sector was active against the trend, with coke up 0.98%, planting up 0.79%, and coal mining up 0.67%; white goods and state-owned large banks edged higher, up 0.46% and 0.44%, respectively. Growth-oriented sectors such as the CPO concept, semiconductors, computing power hardware, memory chips, and lithium batteries were among the biggest decliners. There were 18 limit-up stocks and 8 limit-down stocks, with advancers accounting for about 8% of the market, indicating broad-based declines at the individual stock level. Overnight News at a Glance 1. Adjustment to export tax rebate policy: The Ministry of Finance and the State Taxation Administration announced on October 12 that, starting April 1, 2027, the export tax rebate rate for new energy vehicles will be lowered from 13% to 9%, and export tax rebates for products such as electronic cigarette devices will be canceled. Data from the China Association of Automobile Manufacturers show that in the first three quarters, the share of new energy vehicle sales rose to 53.6%. 2. Dense policy signals for the capital market: CSRC Chairman Wu Qing will attend the annual meeting of the 2026 Financial Street Holdings Forum, which opens on October 19, and deliver a keynote speech; Wang Li, deputy director of the CSRC General Office, said that more systems and practices tailored to innovative small and medium-sized enterprises will be explored. Four commodity exchanges publicly solicited opinions on the same day on revising measures for handling violations. 3. Overseas markets under pressure overnight: On October 12, the three major U.S. stock indices closed mixed, with the Dow up 0.38% at 51850.55 points, the S&P 500 down 0.06%, and the Nasdaq down 0.44%. The Philadelphia Semiconductor Index fell 2.67%. The U.S. dollar index hit a new high for the year, WTI crude oil futures rose 2.06% to $93.74 per barrel, and Brent crude oil futures rose 1.84% to $106.65 per barrel. Trend Assessment The three major indices opened collectively lower, with the Shanghai Composite Index down 0.96% at 3760.80 points, and the ChiNext Index and STAR 50 opening 2.18% and 2.61% lower, respectively, with growth sectors adjusting more than large-cap blue chips. Structurally, there was a divergence between value and growth, with sectors such as coal, planting, white goods, and state-owned large banks posting small gains, while growth sectors such as the CPO concept, semiconductors, memory chips, and lithium batteries were among the biggest decliners. The overnight weakness in U.S. memory and optical communications sectors, the sharp early decline in South Korean stocks, and the Nikkei 225 falling more than 2% may weigh on A-share computing power sectors. Institutional consensus leans cautious, with third-quarter earnings verification seen as potentially the core variable for sector divergence in the fourth quarter, and the indices likely to continue fluctuating in the short term.