A-share Midday Review | Shanghai Composite Index down 0.10%, semiconductors strengthen, "Yang"-related stocks hit limit-down in batches

On November 4, the three major A-share indices opened mixed in early trading. The Shanghai Composite Index opened lower and fluctuated within a narrow range, while the Shenzhen Component Index and ChiNext Index opened higher, rallied, then pulled back, with ChiNext at one point up more than 1% intraday. The market showed a pattern of "narrow index fluctuations, more decliners than advancers, and divergence between technology hardware and theme stocks." As of the midday close, the Shanghai Composite Index was down 0.10% at 3,604.37 points, the Shenzhen Component Index was up 0.14%, and ChiNext was up 0.10%. More than 3,700 stocks across the market declined. Half-day turnover across the Shanghai and Shenzhen markets totaled RMB925.1 billion, a shrinkage of RMB67.5 billion from the previous trading day. On the capital flow front, midday commentary data from Hithink RoyalFlush Information Network showed that the chip concept saw a net main-force inflow of RMB5.735 billion, and the Siasun Robot&Automation concept saw a net inflow of RMB4.456 billion. Market Overview On the board, on the upside, semiconductors, semiconductor equipment, automotive chips, memory chips, and film and cinema sectors led gains; on the downside, dairy, beverage manufacturing, real estate, papermaking, and oil and gas extraction and services sectors led declines. Overall, limit-up stocks were mainly concentrated in two directions: Siasun Robot&Automation (physical AI) and film and media (AI animated shorts). The Shanghai Composite Index edged lower, dragged by consumer and real estate heavyweights. "Yang"-homophone stocks that had been driven by pun-based speculation in the previous trading session collectively retreated, with more decliners than advancers across the market and weak money-making effect. Hot Sectors 1. Semiconductor equipment sector leads gains The semiconductor equipment sector rose 3.84%, and the semiconductor sector rose 1.90%. Tolerance Technology at one point hit the 20% limit-up intraday and was up more than 15% at midday; Bestechnic (Shanghai) Co., Ltd. rose more than 13%; Beijing Jingyi Automation Equipment rose more than 8%; Kingsemi Co., Ltd. rose more than 6%; ACM Research rose more than 5%; and Advanced Micro-Fabrication Equipment Inc. China rose more than 3%. Commentary: On the news front, on the morning of November 4, CXMT Corporation announced that Chairman Zhu Yiming proposed increasing the share repurchase amount from "no less than RMB1 billion and no more than RMB2 billion" to "no less than RMB2.5 billion and no more than RMB5 billion." The company's third-quarter report disclosed on October 30 showed that revenue for the first three quarters was RMB269.024 billion, up 738.51% year on year, and net profit attributable to shareholders was RMB132.04 billion, turning from loss to profit year on year. On the earnings side, according to market data statistics, 14 semiconductor equipment companies reported combined revenue of RMB75.938 billion for the first three quarters, up 19.3% year on year, and net profit attributable to shareholders of RMB17.660 billion, up 59.5% year on year. Among them, Advanced Micro-Fabrication Equipment Inc. China's net profit attributable to shareholders was RMB4.134 billion, up 241.31% year on year; Piotech Inc. grew 336.79%; and Hangzhou Changchuan Technology grew 103.92%. ACM Research's order backlog was RMB17.073 billion, up 88.2% year on year, and delivery schedules at some leading equipment companies have extended to the first half of 2027. In addition, the Philadelphia Semiconductor Index rose 2.63% overnight, with all 30 constituent stocks closing higher. 2. Humanoid Siasun Robot&Automation and physical AI concepts rebound The humanoid Siasun Robot&Automation sector rose 0.72% at midday, while the Siasun Robot&Automation concept edged down 0.08%. Suocheng Technology hit the 20% limit-up; Shenzhen Zhaowei Machinery & Electronics, Qingdao CHOHO Industrial, Zhejiang Fulai New Material, Wuhu Sanlian Forging, and Zhejiang Zomax Transmission hit limit-up; Yonz Technology recorded a second consecutive limit-up; Ningbo Zhenyu Technology rose more than 13%; Shenzhen Ampron Technology rose more than 8%; and Keli Sensing Technology rose more than 7%. Commentary: On the news front, on November 3, Wang Xingxing, founder of Unitree Robotics, said before the opening of the World Internet Conference Wuzhen Summit that the company will focus on conquering Siasun Robot&Automation brain technology in the future and, in addition to its own technological breakthroughs, will seek cooperation globally, and said he is bullish on physical AI technology. Previously, on October 22, at the 2026 World Physical AI Conference and Unitree Partner Ecosystem Conference, he set out three major directions: enhancing large-scale mass production capability, advancing the implementation of small physical AI models adapted to its own hardware, and building ultra-large-scale computing power clusters. Separately, CNBC reported on November 2 that two humanoid Siasun Robot&Automation reference platforms unveiled by Nvidia in recent months both use robotic hands developed or manufactured by Chinese companies. 3. Film and cinema, AI animated short drama concepts strengthen The film and cinema sector rose 1.30%, and the culture and media sector rose 0.91%. Dasheng Times Cultural Investment hit the limit-up at the open and recorded a third consecutive limit-up; Zhewen Pictures Group co.,ltd and Heilongjiang Publishing&Media Holdings hit limit-up, both recording a third consecutive limit-up; Inly Media Co., Ltd and Decai Decoration hit limit-up; Citic Press Corporation rose more than 15%; Easy Click Worldwide Network Technology rose more than 4%; and Tianyu Digital Technology Group rose more than 4%. Commentary: On the news front, on November 3, QuestMobile released the "China Mobile Limited Internet Autumn Report." In September 2026, the top three apps within ByteDance Group became Douyin, Hongguo Free Short Dramas, and Doubao, with deduplicated total user volumes of 1.029 billion, 430 million, and 419 million, respectively, with Hongguo Free Short Dramas having surpassed Doubao. The report also showed that short drama video users grew from 10 million to 400 million in less than three years, and in September 2026 total usage time of short drama videos posted a net increase of 13.329 billion hours, ranking first among all tracks. 4. "Yang" theme fades, dairy and beverage manufacturing lead declines The dairy sector fell 2.35%, the beverage manufacturing sector fell 2.30%, and the food processing and manufacturing sector fell 0.90%. Jiangxi Sunshine Dairy, Baiyang Investment Group, Inc., Jiangsu Aoyang Health Industry, ZheJiang YanKon Group, and Juneyao Grand Healthy Drinks hit limit-down; Fujian Wanchen Food Group fell more than 8%; Xinjiang Western Animal Husbandry fell more than 5%; and Zhejiang Yiming Food fell 5%. Commentary: On the news front, according to a China National Radio report on November 4, there are 70 A-share stocks whose names contain the homophones "yang, yang, yang" (), of which 10 hit limit-up on November 3. As of 9:40 on November 4, 62 of these 70 stocks had declined, with 38 falling more than 5%, a one-day reversal of the theme. Several companies issued announcements the same day warning of risks, with Shandong Oriental Ocean Sci-Tech and others having announced no material changes in fundamentals. In addition, Juneyao Grand Healthy Drinks' third-quarter report disclosed on the evening of October 29 showed a net loss attributable to shareholders of RMB19.24 million for the first three quarters.