A-share Market Open Brief | All three major indices open lower, computing power hardware concept leads declines

Opening Data On October 29, the Shanghai Composite Index opened 0.13% lower at 3,676.77 points, the Shenzhen Component Index opened 0.82% lower at 11,379.00 points, and the ChiNext Index opened 1.46% lower at 2,596.22 points. The STAR 50 opened 0.87% lower at 1,271.81 points. As of 9:31, a total of 1,260 stocks in the Shanghai and Shenzhen markets rose, 4,020 fell, and 297 were flat. Top gainers: papermaking, coke, shipping ports, leisure foods, non-metallic materials, city commercial banks, lab-grown diamond concept, etc.; top decliners: components, optical communications, computing power hardware, PEEK materials concept, physical AI concept, etc. Market Overview The three major indices all opened lower, with the Shanghai Composite down 0.13%, and the Shenzhen Component and ChiNext down 0.82% and 1.46%, respectively, with the growth side opening noticeably lower than the main board. After the open, the indices edged lower. As of 9:31, the Shanghai Composite stood at 3,668.42 points, down 0.35%; the Shenzhen Component at 11,353.94 points, down 1.04%; the ChiNext at 2,590.24 points, down 1.69%; and the STAR 50 at 1,261.94 points, down 1.64%. Structurally, there was a high-low switch: low-level cyclicals and banking sectors such as papermaking, coke, shipping ports, and city commercial banks moved against the trend. The Baltic Dry Index rose 1.88% to 2,652 points on October 28, with the Capesize index up 4.97%, driving activity in the shipping ports sector. The computing power chain that led gains in the previous trading session collectively gave back gains, with components, optical communications, computing power hardware, PEEK materials, physical AI and other concepts among the top decliners. Market breadth was weak, with 1,260 stocks rising and 4,020 falling in the Shanghai and Shenzhen markets, a rise ratio of 22%, with 14 limit-up and 0 limit-down stocks, as active capital concentrated in a small number of low-level sectors. Overnight News at a Glance Fed holds rates steady: On October 28, the Federal Reserve kept the federal funds rate target range unchanged at 3.75% to 4% by a 10-2 vote, with two members favoring a 25-basis-point hike. The three major U.S. indices closed higher for a third consecutive trading day, with the Dow up 0.19%, the Nasdaq up 0.27%, and the S&P 500 up 0.28%. Policy-based financial instruments fully deployed: As of October 28, the RMB800 billion in new policy-based financial instruments for 2026 had been fully deployed, with the three policy banks deploying RMB365 billion, RMB120 billion, and RMB315 billion, respectively, all used to supplement project capital, with focus on artificial intelligence, the digital economy, green and low-carbon, biomedicine and other fields. Memory chip upcycle continues: SK Hynix reported third-quarter revenue of KRW104.62 trillion, surpassing KRW100 trillion for the first time, with operating profit up 5.57 times year-on-year, and announced an additional return of about US$45 billion to shareholders. Its U.S. shares rose 13.3% on October 28, driving memory stocks such as SanDisk and Micron Technology higher, as the semiconductor sector extended its rally. Trend Analysis In the previous trading session, the Shanghai and Shenzhen markets rose broadly on heavier volume, with turnover of about RMB1.63 trillion, and the ChiNext up 3.40%, led by technology growth; on October 29, the three major indices all opened lower, with the ChiNext and STAR 50 posting the largest opening declines, as capital rotated from the computing power chain back to low-level cyclicals such as papermaking, coke, and shipping ports, as well as banking. Overnight, the Fed held rates steady, but two members favored a hike, and the 10-year U.S. Treasury yield rose 2.5 basis points to 5.022%, weighing on high-valuation growth; the memory chain remained strong overseas, while related A-share sectors saw profit-taking after a rapid rally earlier. Institutional views are divided: Jufeng Investment Advisory and others believe repair momentum remains, but whether volume can continue to expand and whether third-quarter earnings are delivered are key verification points; the Huaan strategy team judges that the market will overall continue to run weak in late October. In the short term, the market may remain range-bound to digest, with direction likely awaiting confirmation from turnover and third-quarter earnings delivery.