A-share Market Open Brief | All three major indices open lower; media application sector bucks the trend and strengthens

Opening Data On November 3, the Shanghai Composite Index opened 0.37% lower at 3,624.58 points, the Shenzhen Component Index opened 0.69% lower at 10,934.30 points, and the ChiNext Index opened 1.18% lower at 2,429.77 points. The STAR 50 opened 1.04% lower at 1,184.53 points. As of 9:31, a total of 1,192 stocks in the Shanghai and Shenzhen markets rose, 4,029 fell, and 357 were flat. Top gainers: precious metals, digital media, aviation and airports, gaming, film and cinema circuits, publishing, etc.; top decliners: communications equipment, components, semiconductors, CPO concept, optical chips, physical AI concept, etc. Market Conditions All three major indices opened lower, with the growth side weaker than the main board. After the open, the indices continued to move lower. As of 9:31, the Shanghai Composite Index stood at 3,613.52 points, down 0.67%; the Shenzhen Component Index at 10,917.02 points, down 0.85%; the ChiNext Index at 2,422.28 points, down 1.48%; and the STAR 50 at 1,169.22 points, down 2.32%, the weakest of the four. Structurally, the market showed a pattern of "hardware retreating, applications advancing." Communications equipment, components, semiconductors, CPO concept, and optical chips were among the top decliners, consistent with the overnight moves in the Philadelphia Semiconductor Index, which fell 3.37%, Intel, which fell 8.80%, and AMD, which fell 7.52%; media sectors such as digital media and film and cinema circuits moved against the trend, with concept indices such as Yuanmeng Star and iQIYI also among the top gainers; the precious metals sector rebounded in line with the 1.83% overnight gain in COMEX gold futures. Media was the strongest main line at the open, but gains narrowed significantly within ten minutes after the open: as of 9:38, the gain in digital media narrowed from more than 2% at one point during the session to about 1.5%, film and cinema circuits fell back to a gain of 0.28%, and publishing and television broadcasting had successively turned lower, down 0.26% and 0.39%, respectively. At the individual stock level, the decline was broad, with 4,029 stocks falling and only 1,192 rising in the Shanghai and Shenzhen markets, a rising share of about 21%, with 16 limit-up and 3 limit-down, indicating relatively weak money-making effect. Overnight News at a Glance U.S. stocks diverged, with the Nasdaq down 1.07%: On November 2, the three major U.S. indices closed mixed, with the Dow up 0.41% at 51,983.98 points, the Nasdaq down 1.07% at 25,164.32 points, the S&P 500 down 0.51%, and the Philadelphia Semiconductor Index down 3.37%. The December New York crude oil contract fell 7.36% to US$96.46. Two market-stabilization tools further strengthened: On November 3, the central bank conducted its third securities, fund, and insurance company swap facility operation, with a term of 1 year; 31 securities and fund companies submitted demand, with requested quotas exceeding RMB100 billion. The relending for stock buybacks and increased holdings was converted from a phased arrangement to a long-term institutional arrangement, with the interest rate cut from 1.25% to 1%. The China Association for Public Companies released its third-quarter operating results report: A total of 5,578 listed companies across the market reported combined revenue of RMB56.8 trillion and net profit attributable to parent companies of RMB5.1 trillion for the first three quarters, up 5.9% and 8.5% year on year, respectively; of which 5,224 companies in the Shanghai and Shenzhen markets reported revenue of RMB56.6 trillion and net profit of RMB5.1 trillion, up 5.8% and 8.5% year on year, respectively. Since the beginning of the year, medium- and long-term funds such as social security, annuities, and insurance have made net purchases of A-shares exceeding RMB600 billion. Trend Analysis On November 2, the three major indices closed higher collectively, with the Shanghai Composite Index up 1.08% at 3,638.03 points, turnover in the Shanghai and Shenzhen markets at RMB1.783695 trillion, an increase of more than RMB100 billion, and more than 4,600 individual stocks rising. On November 3, the three major indices opened lower collectively, with hardware sectors such as semiconductors (up 2.49% the previous day) and communications equipment giving back gains; communications equipment, which had risen only 0.35% the previous day, was already down more than 4% today. Drivers came from both domestic and overseas factors. Domestically, the third swap facility operation reported requested quotas exceeding RMB100 billion, and the interest rate on relending for buybacks and increased holdings was cut to 1%; overseas, on November 2, the Nasdaq fell 1.07%, the Philadelphia Semiconductor Index fell 3.37%, and New York crude oil fell 7.36%. A CITIC SEC research report dated November 3 said the market adjustment has already occurred in advance, structural turning points will increase next year, non-AI sectors have broad opportunities for structural repair, and there may be a major shift in style; Northeast Securities judged on the same day that this round is an oversold rebound catalyzed by policy support, and the sustainability of the rebound still needs to be verified by volume, with aggressive investors able to moderately increase growth exposure contrarily. The two firms agree on the judgment of policy support, but their indications on style switching differ, and overseas AI asset pricing remains in a sensitive period.