A-share Market Open Brief | Three Major Indices Open Sharply Lower, Computing Power Hardware Leads Declines

Opening Data On October 30, the Shanghai Composite Index opened 1.25% lower at 3,605.65 points, the Shenzhen Component Index opened 2.40% lower at 10,871.13 points, and the ChiNext Index opened 3.29% lower at 2,434.80 points. The STAR 50 opened 3.02% lower at 1,190.95 points. As of 9:31, a total of 421 stocks in the Shanghai and Shenzhen markets were up, 5,109 were down, and 47 were flat. Top gainers: hotels and catering, shipping and ports, baijiu, leisure foods, aerospace equipment, BDI concept, etc.; top decliners: Broadcom concept, components, communications equipment, Google concept, optical chips, copper-clad laminates, CPO concept, etc. Market Conditions The three major indices all opened sharply lower, with growth stocks falling significantly more than the main board, and both the ChiNext Index and STAR 50 opening more than 3% lower. After a brief dip following the open, they recovered slightly. As of 9:31, the Shanghai Composite Index was down 1.45% at 3,598.65 points, the Shenzhen Component Index was down 2.35% at 10,876.23 points, the ChiNext Index was down 3.12% at 2,439.06 points, and the STAR 50 was down 3.41% at 1,186.16 points. At the sector level, there was a clear high-low switch. The computing power hardware industry chain came under collective pressure, with the Broadcom concept, components, communications equipment, and Google concept among the top decliners, while optical chips, copper-clad laminates, and the CPO concept weakened in tandem, and semiconductors followed lower, moving in the same direction as the overnight weakness in U.S. tech stocks; shipping and ports, hotels and catering, baijiu, leisure foods and other low-position and domestic-demand sectors rose slightly, mostly within 1.5%, while aerospace equipment extended yesterday's strength. In terms of volume and sentiment, as of 9:31, 14 stocks hit the daily limit up and 9 hit the limit down, with advancers accounting for only 7% of the entire market, highlighting broad-based declines across individual stocks. Overnight News at a Glance 1. U.S. stocks closed lower: On October 29, the Dow fell 0.25% to 52,342.56 points, and the Nasdaq fell 1.38% to 26,184.72 points. Google Class A shares fell 12.6% on AI spending concerns, and the Philadelphia Semiconductor Index fell 1.4%, ending a four-day winning streak. U.S. third-quarter GDP grew 3.4% annualized, and September core PCE rose 3.1% year on year. 2. Macro policy: The communique of the Fifth Plenary Session of the 20th Central Committee was released on October 29, calling for solid work in all areas at the end of the year and the beginning of next year, full use of macro policies, deeper tapping of domestic demand potential, and ensuring the completion of the year's main economic and social development targets. The Ministry of Commerce said that if the European side takes discriminatory restrictive measures against Chinese products, China will certainly take all necessary measures. 3. Trade and oil prices: The Ministry of Commerce and three other departments issued a notice proposing 16 measures covering trade in goods, trade in services, and new business forms to improve the level of trade liberalization and facilitation in the Hainan Free Trade Port. From 24:00 on October 29, domestic gasoline and diesel prices were actually raised by RMB345 per tonne and RMB335 per tonne, respectively, with the adjustment magnitude lower than the amount that should have been adjusted. Trend Analysis On October 29, the three major indices opened lower and moved lower, with the Shanghai Composite Index down 0.82%, the Shenzhen Component Index down 2.92%, the ChiNext Index down 4.45%, and the STAR 50 down 4.27%. Computing power hardware fell collectively, while banks and wind power equipment bucked the trend and strengthened, with the combined market capitalization of the four major state-owned banks exceeding RMB10 trillion for the first time during intraday trading. Overnight, U.S. tech stocks weakened again, with Google Class A shares falling 12.6% on doubts over the returns on AI capital expenditure, and the Philadelphia Semiconductor Index ending a four-day winning streak; U.S. third-quarter GDP grew 3.4% annualized and September core PCE rose 3.1% year on year, with the probability of a December rate hike rebounding to about 80%. In yesterday's market, funds shifted from high-position computing power hardware to dividend-oriented sectors such as banks and coal. After the decline on shrinking volume, the index's downside may be relatively limited, but the tech line has not yet stabilized, and dividend defense and low-position rotation may remain the main short-term clues.