A-share Evening Highlights | US Midterm Election Results Settle, Global Stock Markets Rally Broadly

Evening Highlights 1. US Midterm Election Results Settle, Global Stock Markets Rally Broadly Importance: On November 4, the US midterm election results settled, with Democrats winning big over Republicans, and global stock markets strengthened across the board. In the A-share market, the Shanghai Composite Index closed up 2.16%, the ChiNext Index rose 6.40%, and the STAR 50 Index closed up 9.92%, with the semiconductor sector leading gains, and combined turnover in the two markets returning above RMB2 trillion. According to a research report by Luo Zhiheng, chief economist at Yuekai Securities, the conclusion of the US midterm elections may boost global risk appetite in the short term, and A-shares and Hong Kong stocks both strengthened that day. According to Wallstreetcn, the Hang Seng Index closed up 1.67%, recording a fourth consecutive gain; as of 21:56, the German DAX Index was up 2%, and the Euro Stoxx 50 Index and French CAC 40 Index were up more than 2%. At 22:30, US stocks opened, with the Dow opening 623.51 points higher, up 1.20%, at 52,410.23 points; the S&P 500 opened up 0.88%, and the Nasdaq Composite opened up 1.11%. Pre-market Dow futures had at one point surged more than 1,100 points. In market action, Microsoft rose 4.6%, Amazon rose 6.8%, Tesla fell 5%, and SpaceX fell 5.3%; according to Wallstreetcn, the Democratic victory cleared political uncertainty risk for Wall Street, while tech billionaires suffered heavy losses. In addition, Shanghai silver opened up more than 4% in the night session, Shanghai gold rose more than 2%, and spot gold and silver prices rose 2.87% and 4.43%, respectively, that day. 2. NDRC and Four Other Departments Issue the "Action Plan for Implementing the Comprehensive Conservation Strategy" Importance: On November 4, the National Development and Reform Commission and four other departments issued the "Action Plan for Implementing the Comprehensive Conservation Strategy," proposing that by 2030 the comprehensive conservation system will be more complete, and China's energy consumption, water consumption, and construction land use area per unit of GDP will decrease by about 10%, 10%, and 15%, respectively, compared with 2025, while the annual recycling volume of major renewable resources will reach 510 million tons. The plan proposes vigorously advancing energy conservation in key areas, promoting energy-saving and carbon-reduction upgrades of infrastructure such as computing power, communication base stations, and data centers, and by 2030 reducing energy consumption per unit of value-added of industrial enterprises above designated size by more than 10% compared with 2025; accelerating the improvement of resource utilization, and by 2030 achieving an annual utilization volume of bulk solid waste of about 4.5 billion tons. 3. International Oil Prices Fall During Trading, WTI Down 3% Intraday Importance: On the evening of November 4, international oil prices fell during trading. According to Wallstreetcn, Brent crude was down 2.0% intraday at 20:29, at US$101.48 per barrel; WTI crude was down 3% intraday at 21:59, at US$93.21 per barrel. 4. CICC Wins RMB16.3 Billion in the Third Batch of Swap Facility Operations Importance: According to Wallstreetcn, the People's Bank of China recently conducted swap facility operations for securities, fund, and insurance companies, with an operation amount of RMB100 billion, using a rate bidding method, with 31 securities and fund companies participating in bidding, and a winning rate of 10bp. In this operation, CICC won a total of RMB16.3 billion and completed the first batch of pledged repo transactions. 5. Frontline Verification of IPO Suspension Rumors: Not a "One-Size-Fits-All" Approach Importance: Recently, rumors that regulators had suspended IPOs continued to ferment. According to a Cailian Press report on November 4, reporters learned from multiple industry insiders that some brokerages had received arrangements to slow or even suspend IPO processes, but it was most likely a tightening rather than a "one-size-fits-all" approach; some industry insiders said the move was related to recent secondary-market performance. Combined with previous measures to tighten IPO pacing in stages, this is more likely a slowdown and tightening, and can be seen as a adjustment between the primary and secondary markets. 6. US October ADP Employment Rises by 86,000, Beating Expectations Importance: According to Wallstreetcn, US ADP employment increased by 86,000 in October, versus expectations for an increase of 67,000, after a prior increase of 90,000, marking 16 consecutive months of gains. 7. Brain-Computer Interface Technology Standards and Industrial Application Reference Specifications Released Importance: According to a Securities Times report on November 4, the "Brain-Computer Interface Technology Standards and Industrial Application Reference Specifications (1.0)" was officially released and launched. The reference specifications were jointly formulated by industry experts from four dimensionsproduct development, industrial investment, industrial application, and academic research and developmentmarking a substantive step forward in building industry consensus and standards for China's brain-computer interface sector. Opportunity Outlook GMTEight sorts through the sectors with the highest attention that day and their catalyst events. 1. Memory: According to Counterpoint Research, the global average selling price of smartphones rose 27% year on year to US$442 in the third quarter, the highest level ever for a single quarter, with memory-driven price increases an important support. 2. Lab-grown diamonds: A subsidiary of Henan Huanghe Whirlwind raised the price of large single-crystal products (rough lab-grown diamonds) by 10% starting November 1, the second price increase this year. 3. Energy storage: Sichuan issued a three-year action plan for new energy storage project construction, with the province adding more than 13 million kilowatts/26 million kilowatt-hours of new energy storage projects from 2026 to 2028. 4. Low-altitude economy: The Guangdong Provincial Development and Reform Commission issued a notice to carry out investment services for enterprises in the low-altitude economy sector; EHang Holdings released a heavy-payload firefighting eVTOL aircraft. 5. Innovative drugs: Jiangsu Hengrui Pharmaceuticals' marketing application for camrelizumab for injection combined with apatinib mesylate tablets for first-line treatment of liver cancer was accepted by the US FDA. Among them, overseas progress in the innovative drug sector was intensive. Hybio Pharmaceutical's GLP-1R/GIPR/GCGR triple receptor agonist HY3003 injection received US FDA clinical trial clearance; CMS's ruxolitinib phosphate cream was approved for marketing by the Health Sciences Authority of Singapore. A China Post Securities research report said that the summary of the pharmaceutical industry's third-quarter 2026 reports shows that the high prosperity of the innovative drug supply chain continues, and the device sector has shown an inflection point. Selected Announcements Positive Announcements 1. Yantai Jereh Oilfield Services Group: Its wholly owned subsidiary received three project award letters from Abu Dhabi National Oil Company, with a total amount of approximately US$2.697 billion. 2. Hengtong Optic-Electric: The controlling shareholder plans to increase its shareholding by RMB400 million to RMB600 million. 3. Chaozhou Three-Circle (Group): Plans to repurchase shares for RMB500 million to RMB1 billion. 4. Asymchem Laboratories: Plans to repurchase shares for RMB500 million to RMB700 million. 5. Yunnan Tin Co., Ltd.: The parent company of the controlling shareholder proposes to repurchase shares for RMB100 million to RMB200 million. Negative Announcements 1. Tianshan Material: Received a case filing notice from the China Securities Regulatory Commission on suspicion of information disclosure violations. 2. Jiangsu Leili Motor: Actual controller, director, and general manager Su Da was placed under investigation by the China Securities Regulatory Commission on suspicion of information disclosure and share reduction violations. 3. Shenzhen Breo Technology: The controlling shareholder and actual controller received an administrative penalty decision, with total fines and confiscations of RMB40.4731 million. 4. Chimin Health Management: The controlling shareholder and actual controller plan to transfer a 5% stake by agreement for RMB160 million. Tomorrow's Focus Watch tomorrow (November 5): the People's Bank of China conducting RMB300 billion in outright reverse repo operations (3-month term), and the opening of the 9th China International Import Expo.