A-share Pre-market Briefing | FX Reserve Requirement Ratio Raised to 6%, Nasdaq Falls 1.07%, Relending Rate for Share Buybacks Cut

Pre-market Briefing 1. U.S. stocks rally then pull back; Nasdaq falls 1.07%, Philadelphia Semiconductor Index drops 3.37% Type: Market Sentiment impact: Negative U.S. stocks rallied then pulled back on November 2, with the Nasdaq falling 1.07%, the S&P 500 falling 0.5%, and the Dow rising 0.41%. Chip stocks broadly declined, with the Philadelphia Semiconductor Index down 3.37%; Cerebras fell 11.7%, Intel fell nearly 9%, Western Digital, AMD and Seagate Technology fell more than 7%, and SanDisk fell more than 6%. Most of the Magnificent Seven declined, with Microsoft down 2.86%, Apple down 1.72% and Nvidia down 1.23%, while Amazon rose 2.23%. 2. PBOC raises FX deposit reserve requirement ratio by 2 percentage points to 6%, effective November 15 Type: Macro Sentiment impact: Negative The People's Bank of China announced on November 3 that, to strengthen foreign exchange liquidity management at financial institutions, it has decided to raise the FX deposit reserve requirement ratio for financial institutions by 2 percentage points, from the current 4% to 6%, effective November 15, 2026. 3. Three-department symposium: Relending for buybacks and increased holdings becomes a long-term institutional arrangement; rate cut to 1% Type: Macro Sentiment impact: Positive The People's Bank of China, the National Financial Regulatory Administration and the China Securities Regulatory Commission held a symposium on November 2 on the two tools supporting the capital market, clarifying that the relending policy for stock buybacks and increased holdings will shift from a phased arrangement to a long-term institutional arrangement, with the relending rate cut from 1.25% to 1%. The meeting disclosed that the balance of the swap facility stood at RMB105 billion, and that signed buyback and increased-holding loan agreements totaled about RMB440 billion, with cumulative disbursements exceeding RMB280 billion. The PBOC announced the same day that it would conduct its third swap facility operation on November 3, with a one-year swap term; 31 securities and fund companies have submitted applications, with requested amounts exceeding RMB100 billion. 4. Civil aviation green development "15th Five-Year Plan" implementation plan issued; carbon emissions per ton-kilometer to fall 4% by 2030 versus "14th Five-Year Plan" period Type: Industry Sentiment impact: Neutral The Civil Aviation Administration of China issued the "Implementation Plan for Green Development of Civil Aviation under the 15th Five-Year Plan," proposing that by 2030 a dual-control system for total and intensity of industry carbon emissions will be initially established, with carbon dioxide emissions per ton-kilometer for transport aviation and per unit passenger throughput at airports falling 4% and 15%, respectively, compared with the "14th Five-Year Plan" period. The plan sets out seven key tasks, including promoting the safe and orderly substitution of sustainable aviation fuel and steadily advancing the inclusion of aviation in the national carbon emissions trading market. Investment Calendar November 3: National Development and Reform Commission holds a series of press conferences on forging ahead under the "15th Five-Year Plan" Institutional Views 1. CITIC SEC: Adjustments were front-loaded this year; in 2027, "K-shaped convergence and broader market breadth" are expected, and allocation should be moderately diversified 2. SDIC Securities: Convertible bonds "hold steady and await change"; the CSI 300 has fallen for 12 consecutive weeks, the longest streak since 2005 3. Sinolink: Margin financing accelerating net outflows while stock ETFs continue to provide support; the market still faces trading disturbances such as rapid deleveraging Positive/Negative Outlook 1. U.S. midterm elections held today Type: Market hot topic Guosheng: U.S. midterms on November 3; focus on whether Democrats can retake both chambers. 2. Apple and AMD report earnings after today's U.S. market close Type: Institutional hot commentary CITIC SEC: After Intel's Q4 guidance missed across the board, the market has begun reassessing the sustainability of EPS growth for AI assets with high consumer electronics exposure. 3. Shenzhen APEC meeting to be held November 18-19 Type: Policy focus Guosheng: Shenzhen APEC meeting on November 18-19; top leaders of China, the U.S. and Russia may meet. Announcement Digest Positive announcements 1. Contemporary Amperex Technology: As of October 31, cumulatively repurchased 19.6059 million shares for a total transaction amount of RMB5.36 billion 2. Zhejiang Dahua Technology: Subsidiary wins China Mobile Limited's centralized procurement project for next-generation AI super-node equipment, amounting to about RMB2.63 billion 3. Sharetronic Data Technology: Controlling shareholder plans to increase its stake in the company within 6 months, with an amount of no less than RMB500 million and no more than RMB1 billion Negative announcements 1. Hangzhou SDIC Microelectronics Inc.: The company and controlling shareholder Lu Hanquan are under CSRC investigation on suspicion of information disclosure violations 2. Hunan Corun New Energy: The company and controlling shareholder Hunan Corun New Energy Group are under CSRC investigation on suspicion of information disclosure violations 3. Jiangsu Maixinlin Aviation Science and Technology Corp.: The counterparty to a computing power equipment procurement contract has defaulted again; the company has issued a demand letter Overseas Markets U.S. stocks rallied then pulled back on November 2, with the Dow up 0.41%, the Nasdaq down 1.07% and the S&P 500 down 0.51%; heavyweight tech stocks retreated and weighed on the indices, with Microsoft down 2.86%, Apple down 1.72% and Nvidia down 1.23%; chip stocks fell more sharply, with the Philadelphia Semiconductor Index down 3.37%, Intel down nearly 9% and Cerebras down 11.7%. Chinese concept stocks bucked the trend, with the Livermore China Concept Leaders Index closing up 1.15% and Bilibili up more than 6%.