A-share Market Open Brief | All Three Major Indices Open Lower, Precious Metals Lead Declines, Computing Power Chain Weakens

Opening Data On October 26, the Shanghai Composite Index opened 0.53% lower at 3,671.00 points, the Shenzhen Component Index opened 0.97% lower at 11,560.36 points, and the ChiNext Index opened 1.43% lower at 2,645.74 points. The STAR 50 opened 0.89% lower at 1,333.48 points. As of 9:40, a total of 2,652 stocks in the Shanghai and Shenzhen markets rose, 2,704 fell, and 221 were flat; 31 hit the daily limit up and 12 hit the daily limit down, with advancers accounting for 47%; turnover in the two markets was 310.128 billion yuan, an increase of 36.948 billion yuan from the same period last Friday. Top gainers: Motorcycles and Other, Leisure Foods, Pharmaceutical Commerce, Oilfield Services Engineering, Medical Devices, Gas, Shipping Ports; on the concept side, Physical AI, Helium, and Leisure Foods concepts led. Top decliners: Precious Metals, Communications Equipment, CPO, Semiconductors, Computing Power Hardware. Market Conditions The three major indices all opened lower and then diverged. After the open, the Shanghai Composite fluctuated upward, touching a high of 3,681.66 points; as of 9:40 it was down 0.27% at 3,680.37 points; the Shenzhen Component was down 1.05% at 11,551.13 points, the ChiNext Index was down 1.97% at 2,631.28 points, and the STAR 50 was down 1.54% at 1,324.76 points. The Shanghai Composite has basically filled its opening gap, while the Shenzhen Component, ChiNext Index, and STAR 50 are all trading below their opening prices, with growth stocks falling noticeably more than the main board. By structure, Motorcycles and Other rose 2.88% to lead the SW Level-2 industries, Leisure Foods rose 1.86%, Professional Services rose 1.49%, Gas rose 1.45%, and Shipping Ports rose 1.39% and closed at the day's high; Pharmaceutical Commerce, Oilfield Services Engineering, and Medical Devices also ranked among the top gainers. On the concept side, Physical AI led with a 3.01% gain, followed by the Leisure Foods concept up 2.35% and the Helium concept up 2.32%. Banks rose 0.30%, providing some support to the Shanghai Composite. On the downside, Precious Metals fell 5.26% to lead the declines, touching an intraday low of 21,756.33 points; Communications Equipment fell 3.74%, CPO fell 2.00%, and Semiconductors fell 1.83%. Semiconductors, Communications Equipment, and CPO, which had gained 1.9%3.3% in the previous trading session, concentrated their giveback, while the Physical AI direction, which had surged 10.50% the previous day, continued to strengthen, showing divergence within tech rather than a broad retreat. Overnight News at a Glance 1. Overseas markets: On October 23, the three major U.S. indices all closed lower, with the Dow down 1.23%, the S&P 500 down 0.52%, and the Nasdaq down 0.21%, while the Philadelphia Semiconductor Index bucked the trend with a 0.44% gain. Middle East tensions pushed oil prices higher, with December Brent crude futures up 3.14% at $116.72, a seven-month high; spot gold fell below the $4,000 mark to close at $3,997.79/oz. 2. Liquidity: The central bank announced that on October 26 it conducted a 70 billion yuan one-year medium-term lending facility operation via fixed-quantity, rate-based tender with multiple-price allotment. As MLF maturities this month totaled 900 billion yuan, this was a reduced rollover with a net withdrawal of 200 billion yuan; combined with a total increase of 400 billion yuan in outright reverse repos across two tenors, October medium-term liquidity still saw a net injection of 200 billion yuan overall. 3. Index compilation: The revised compilation plans for the SSE Composite Index, SSE A-Share Index, SSE Free Float Index, and STAR Composite Index by the Shanghai Stock Exchange and China Securities Index Co. took effect the same day, adding a rule capping any single constituent's weight at 15%. 4. Industrial policy: The "15th Five-Year Plan for National Informatization" was issued, proposing that by 2030 a new-generation communications network be fully built and sixth-generation mobile communications (6G) commercialization be launched in due course, deepening the large-scale deployment of 5G and gigabit optical networks and advancing 5G-A and 10-gigabit optical network construction. Ministry of Industry and Information Technology data show that from January to September, China's shipbuilding completion volume, new orders, and order backlog accounted for 63.6%, 81.8%, and 72.4% of the global total, respectively. Trend Assessment In the previous trading session (October 23), the three major indices bottomed and rebounded. The Shanghai Composite hit an intraday low of 3,574.27 points and closed up 0.89% at 3,690.48 points; the Shenzhen Component rose 2.79% and the ChiNext Index rose 4.16%. Turnover in the two markets expanded to 1.96 trillion yuan, an increase of about 427.6 billion yuan from the previous day; 4,526 stocks across the market rose. The Siasun Robot&Automation concept rose 3.39%, Physical AI rose 10.50%, and Non-Bank Financials rose 1.52%; Power fell 0.68% and Banks fell 1.30%. Policy and liquidity arrangements landed simultaneously today: the central bank's 70 billion yuan one-year MLF operation was implemented the same day, and the revised compilation plans for the SSE Composite Index and three other composite indices took effect the same day. Overseas, U.S. stocks closed lower on October 23 and Brent crude stood above $116, still posing disturbances. Most brokerages believe the sharp selloff is nearing its end. China Securities Co.,Ltd. believes this round is an "acute-drop bottom" formed by an emotional release rather than a "historic bottom," and expects the sharp decline to end soon, ushering in a rebound and repair; Shenwan Hongyuan Group, Zheshang, Guosen, and Huaan all judge a short-term rebound to be reasonable and the year-end/early-year allocation window to be opening. CMSC is relatively cautious, believing the short term will mainly feature range-bound bottoming and structural opportunities. The medium-term direction still awaits validation from third-quarter reports.