A-share Market Open Brief | The three major indices opened mixed, with the precious metals sector leading gains.

Opening Data On November 4, the Shanghai Composite Index opened 0.08% lower at 3,605.39 points, the Shenzhen Component Index opened 0.17% higher at 10,895.80 points, the ChiNext Index opened 0.33% higher at 2,399.46 points, and the STAR 50 Index opened 0.09% higher at 1,152.34 points. As of 9:31, a total of 2,063 stocks in the Shanghai and Shenzhen markets were up, 3,166 were down, and 349 were flat. Top gainers: precious metals, film and cinema lines, publishing, decoration and renovation, gaming, minor metals, etc.; top decliners: large state-owned banks, etc. Market Conditions The Shanghai Composite Index opened 0.08% lower, while the Shenzhen Component Index, ChiNext Index, and STAR 50 Index opened 0.17%, 0.33%, and 0.09% higher, respectively. After the open, the Shanghai Composite Index dipped to 3,599.50 points before rebounding into positive territory, while the ChiNext Index edged back from 2,399.46 points, narrowing its gain to 0.05%. As of 9:31, the Shanghai Composite Index was up 0.02% at 3,608.79 points, the Shenzhen Component Index was up 0.18% at 10,896.39 points, the ChiNext Index was up 0.05% at 2,392.87 points, and the STAR 50 Index was up 0.02% at 1,151.46 points. Sector-wise, precious metals, film and cinema lines, publishing, decoration and renovation, gaming, and minor metals led gains, with germanium-gallium concept and wine concept stocks active; large state-owned banks led declines, banks and insurance weakened slightly, and general equipment was basically flat. The precious metals sector had fallen 5.56% cumulatively over the past 5 days and 15.17% over the past 20 days, so its opening strength was closer to an oversold rebound; overnight, COMEX gold futures fell 0.74% and silver futures fell 2.12%, offering no directional lead from overseas markets. In the Shanghai and Shenzhen markets, 14 stocks hit the daily limit-up and 5 hit the daily limit-down, with advancers accounting for 37% of the total, as the index edged higher while more stocks fell than rose. Overnight News at a Glance U.S. stocks diverged: the Dow fell 0.38% to 51,786.72 points, the Nasdaq rose 0.83% to 25,372.01 points, and the Philadelphia Semiconductor Index rose 2.63% to 10,600.40 points, with memory and chip stocks rebounding. The 10-year U.S. Treasury yield continued to rise by more than 5 basis points to 4.966%, and the December WTI crude contract fell 0.38% to $96.09. The United States held midterm election voting on the 3rd. Stepped-up market stabilization: The People's Bank of China on the 3rd conducted its third securities, fund, and insurance company swap facility operation, amounting to RMB100 billion, with 31 securities and fund companies participating in the bidding and a winning rate of 10 basis points; the PBOC, together with the National Financial Regulatory Administration and the CSRC, clarified on the 2nd that the relending facility for stock buybacks and increased holdings would be converted from a phased arrangement to a long-term institutional arrangement, with the interest rate cut from 1.25% to 1%, and the CSRC said in a press conference late on the 2nd that it planned to add stock prices falling below issue price as one of the circumstances under which market-supportive buybacks may be conducted. Electronic cloth price increases: In November, 7628 thick cloth was quoted at RMB14.6 to RMB14.65 per meter, up RMB1.5 month on month; E225 yarn was quoted at RMB71,500 per tonne, up RMB10,500 to RMB12,500 month on month. Manufacturers said they are currently at full production, the electronic cloth upcycle may extend to the end of next year, and cost pressure is being passed down the chain through copper-clad laminates and PCBs. Trend Analysis On the previous trading day, the Shanghai Composite Index fell 0.82% to 3,608.10 points, the ChiNext Index fell 2.73% and lost the 2,400-point level, and turnover shrank to RMB1.7 trillion, with computing power hardware leading declines as funds rotated into low-level sectors such as food and beverage and agriculture, forestry, animal husbandry, and fisheries. On the 4th, opening moves were mixed, with precious metals and film and cinema lines strengthening. Overnight, the Nasdaq rose 0.83% and the Philadelphia Semiconductor Index rose 2.63%, which may ease catch-up declines in A-share computing power chain stocks; however, the 10-year U.S. Treasury yield continued to rise, and the constraint on high-valuation growth stocks remains unresolved. Market stabilization tools have shifted toward normalized supply. Brokerages' November strategy main line centers on low-level repair: Huaxi's Li Lifeng believes the market has shown excessive adjustment and is in a phase of building a bottom, with a rebound from the bottom in sight, and recommends using value stocks as the base position and building positions in batches on dips; Nomura Orient International's Song Jin believes continued ETF inflows are expected to ease market pressure, but recommends maintaining a relatively high defensive tilt in portfolios until volatility declines. The overall allocation approach is shifting from defensive toward a balance of offense and defense, and whether the market can form a sustained rebound still depends on the entry of incremental funds.