A-share Market Open Brief | All three major indices open higher, computing power hardware chain leads gains

Opening Data On October 28, the Shanghai Composite Index opened 0.78% higher at 3,676.92 points, the Shenzhen Component Index opened 1.01% higher at 11,359.08 points, and the ChiNext Index opened 1.77% higher at 2,593.15 points. The STAR 50 opened 2.21% higher at 1,279.90 points. As of 9:31, a total of 4,003 stocks in the Shanghai and Shenzhen markets were up, 1,311 were down, and 262 were flat. Top gainers: non-metallic materials, components, precious metals, communications equipment, semiconductors, copper-clad laminate concept, etc.; top decliners: ground armaments, shipping ports, general retail, gas, China North Industries Group concept, etc., all falling within 1%. Market Overview The four major indices all opened higher, with the ChiNext Index and STAR 50 opening 1.77% and 2.21% higher respectively, showing stronger elasticity on the growth side than the main board. After the open, the indices pulled back slightly. As of 9:31, the Shanghai Composite Index was up 0.46% at 3,665.26 points, the Shenzhen Component Index was up 0.93% at 11,350.43 points, the ChiNext Index was up 1.35% at 2,582.49 points, and the STAR 50 was up 1.15% at 1,266.62 points, with gains narrowing from the open. In terms of structure, computing power hardware segments that led declines in the previous trading day rebounded, with components, semiconductors, communications equipment, and non-metallic materials among the top gainers. The copper-clad laminate concept ranked first among concept sectors with a 4.65% gain, while precious metals rose in line with overnight gold prices. Banks, general retail, and shipping ports, which supported the market in the previous trading day, turned lower, while ground armaments, which led declines in the previous trading day, extended their adjustment, showing a seesaw between defensive and growth segments. As of 9:31, 10 stocks hit the daily limit up and 2 hit the daily limit down, with advancers accounting for 71% of the market, indicating a clear broad-based rally at the individual stock level. Overnight News at a Glance US semiconductors extend gains: On October 27, the three major US indices all closed higher, with the Dow up 0.03% at 52,377.57 points, the Nasdaq up 1.18% at 26,477.81 points, and the Philadelphia Semiconductor Index up 3.6%, with all 30 constituent stocks rising and memory and equipment stocks leading gains; New York crude closed at US$99.90 per barrel. Industrial profits rebound: The National Bureau of Statistics announced on October 27 that profits of industrial enterprises above designated size totaled RMB6.03374 trillion in January-September, up 15.5% year on year, with a single-month increase of 14.4% in September. Profits in the electronics industry doubled, and profits in high-tech manufacturing rose 52%. On the same day, the central bank made a net liquidity injection of RMB1.014 trillion through open market operations. Computing power chain earnings delivered: On the evening of October 27, more than 800 listed companies disclosed their third-quarter reports, with profit growth in computing power segments such as memory chips, copper-clad laminates, printed circuit boards, and servers among the highest, and some companies seeing third-quarter single-quarter growth accelerate from the first half. Shanghai issued a plan proposing that the scale of the intelligent manufacturing system integration industry reach RMB100 billion by 2028. Trend Analysis The open showed broad index gains with structural rotation: components, semiconductors, and communications equipment, which led declines in the previous trading day, rebounded, with the copper-clad laminate concept leading gains, while banks, general retail, and shipping ports, which supported the market in the previous trading day, turned lower. As of 9:31, the Shanghai Composite Index's gain narrowed to 0.46%, with all four major indices in positive territory. There are two drivers: the Philadelphia Semiconductor Index rose 3.6% overnight with all constituent stocks advancing, echoing strong third-quarter reports from memory and copper-clad laminate names; industrial enterprise profits rose 15.5% year on year in January-September, with electronics industry profits doubling. Galaxy Securities noted in a recent strategy report that this round of market adjustment did not stem from changes in fundamentals, but rather from disturbances on the denominator side such as elevated overseas risk-free rates and a higher central range for energy prices. Whether trading volume can follow through will determine the quality of the rebound, and the index may maintain rangebound repair in the near term.