A-share Market Close | Shanghai Composite Index Rises 0.10%, Over 4,800 Stocks Advance, Photovoltaic Equipment Sector Sees Wave of Limit-Up

On November 5, A-shares opened lower and moved higher, surged intraday before pulling back, and the five major indices all closed higher but below their intraday highs. As of the close, the Shanghai Composite Index rose 0.10% to 3,689.91 points, the Shenzhen Component Index rose 1.19% to 11,471.09 points, the ChiNext Index rose 0.87% to 2,566.80 points, the STAR 50 rose 1.68% to 1,286.68 points, and the BSE 50 rose 1.79% to 910.07 points. Combined turnover of the Shanghai and Shenzhen markets was RMB2.11795 trillion, up RMB80.256 billion from the previous trading day, marking the second consecutive trading day above RMB2 trillion. In the Shanghai and Shenzhen A-share markets, 4,869 stocks advanced, 625 declined, and 84 were flat, with 86 hitting the daily limit-up and no stocks hitting the limit-down; advancing stocks accounted for about 87% (excluding the BSE). By sector, photovoltaic equipment, digital media, energy metals, precious metals, advertising and marketing, and film and cinema led the gains; coal mining, communications equipment, components, petroleum and petrochemicals, shipping ports, and banking led the declines. Drivers Overnight, the three major U.S. indices all closed higher: the Dow Jones Industrial Average rose 3.03% to 53,356.12 points, the S&P 500 rose 1.58% to 7,688.62 points, and the Nasdaq Composite rose 1.44% to 25,736.51 points; according to projections by several major U.S. media outlets, the Democratic Party retook control of both the House and Senate. Over the same period, international oil prices fell sharply: on November 4, the December New York crude contract fell 8.29% to close at US$88.12/barrel, and the January Brent contract fell 8.67% to close at US$94.62/barrel, with Brent down as much as 10% intraday and touching a low of US$93.22/barrel; COMEX gold futures rose 3.37% to US$4,073/ounce. Domestically, data from the National Energy Administration showed that China added about 38.76GW of photovoltaic capacity in the third quarter of 2026, up about 38% from 28.06GW in the same period of 2025. On the trading floor, the Shanghai Composite opened lower at 3,646.57 points, corresponding to a decline of 1.07%, with the opening price marking the intraday low; it then surged to 3,701.59 points. The ChiNext Index reached an intraday high of 2,625.98 points, corresponding to a gain of 3.19%, and the STAR 50 reached an intraday high of 1,329.14 points, corresponding to a gain of 5.03%; their closing gains narrowed to 0.87% and 1.68%, respectively. On the same day, coal mining fell 4.20%, communications equipment fell 2.83%, components fell 2.40%, petroleum and petrochemicals fell 2.34%, shipping ports fell 1.73%, and banking fell 0.59%. The Shanghai Composite rose only 0.10% while nearly 4,900 stocks in the Shanghai and Shenzhen markets advanced, creating a clear gap between the index gain and the breadth of stock gains. Hot sectors 1. Photovoltaic equipment The SW photovoltaic equipment index rose 6.23%, ranking first among SW level-2 industries; the BC cell concept rose 6.27% and the HJT/HIT cell concept rose 5.72%; Gansu Golden Solar, Changzhou Shichuang Energy, and Suzhou Betely Polymer Materials all hit the 20CM limit-up, while Hongyuan Green Energy, Hainan Drinda New Energy Technology, Jiangsu Zhongli Group, and Cybrid Technologies Inc. hit the limit-up, and Suzhou Maxwell Technologies rose 16.16%. On the catalyst side, after the Democratic Party retook both chambers of Congress in the U.S. midterm elections, Sinolink believes that tax incentives for industries such as photovoltaics, energy storage, wind power, and SOFC under the Inflation Reduction Act framework are expected to remain intact, medium- and long-term capital expenditure expectations for green power operators are solidifying, and U.S. installation expectations for Shanxi Guoxin Energy Corporation are expected to be revised upward. Domestically, data from the National Energy Administration showed that China added about 38.76GW of photovoltaic capacity in the third quarter of 2026, up about 38% year-on-year; on the supply side, the "anti-involution" policy is also forming a closed loop leading polysilicon enterprises agreed at a closed-door meeting in October on a sales price of no less than RMB43,000/ton, three mandatory national standards covering polysilicon and wafer energy consumption as well as module and inverter energy efficiency will take effect on January 1, 2027, and the "Photovoltaic Manufacturing Industry Normative Conditions (Draft for Comment)" plans to further raise the efficiency access threshold for new and expanded capacity. Photovoltaic equipment became the only SW level-2 industry to rise more than 6% on the day. 2. AI comic dramas and media The SW digital media index rose 5.41%, film and cinema rose 4.75%, and advertising and marketing rose 5.12%; Zhewen Pictures Group co.,ltd opened limit-up and recorded a fourth consecutive limit-up, Jishi Media, Ciwen Media Co.,Ltd., Bona Film Group, and Inly Media Co., Ltd hit the limit-up, Mango Excellent Media rose 9.27%, and FS Development Investment Holdings hit the 20CM limit-up. On the catalyst side, QuestMobile data showed that in September, Hongguo free short dramas had 430 million deduplicated total users, surpassing Doubao's 419 million; the short drama video user base grew from 10 million to 400 million in less than three years; Sinolink estimates that the minimum production cost of a domestic AI comic drama is about RMB350 per minute, and the production cycle for a single title has been compressed from about 90 days to about 10 days. 3. Precious metals and lithium batteries The SW precious metals index rose 5.19%, energy metals rose 5.35%, and batteries rose 4.43%; Sichuan Gold rose 9.55% and Chifeng Jilong Gold Mining rose 8.80%, Shenzhen China Bicycle opened limit-up and Shengda Resources hit the limit-up, both recording a second consecutive limit-up, Contemporary Amperex Technology rose 4.42%, Ganfeng Lithium Group rose 6.27%, and Tianqi Lithium Corporation rose 5.03%. On the catalyst side, spot gold stood at US$4,110/ounce, up 1.17% intraday, and COMEX silver futures were at US$52.89/ounce, up more than 1%; in the lithium battery segment, CITIC SEC noted in its 2027 strategy outlook that the overall prosperity of the lithium battery industry is expected to enter an upcycle, energy storage economics continue to improve, and domestic and overseas demand are resonating upward. Declining sectors Among SW level-2 industries, coal mining fell 4.20%, communications equipment fell 2.83%, components fell 2.40%, and shipping ports fell 1.73%; among SW level-1 industries, petroleum and petrochemicals fell 2.34% and banking fell 0.59%, while the dividend index fell 2.19%. Among individual stocks, PetroChina fell 7.93%, China Coal Energy fell 6.59%, CNOOC Limited fell 6.55%, China Shenhua Energy fell 6.26%, Yankuang Energy Group fell 6.08%, and Shaanxi Coal Industry fell 4.74%; in communications equipment, Zhongji Innolight fell 7.51%, Eoptolink Technology Inc. fell 5.54%, and Suzhou TFC Optical Communication fell 4.78%. On the news front, New York crude and Brent crude futures fell 8.29% and 8.67%, respectively, on November 4, with Brent down as much as 10% intraday, directly weighing on the oil and gas segment; coal also saw supply-side disruptions: the Shanxi Provincial Energy Administration held a special meeting on November 2 on increasing coal production and ensuring supply, requiring strict implementation of the 17 new coal regulations and full efforts to promote the orderly resumption of coal mine production; on November 3, the Qinhuangdao Port 5,500 kcal thermal coal quote was RMB1,013/ton, down RMB2 from the previous period; expectations for coking coal production resumption heated up, and coal prices came under short-term pressure; banks and other dividend-heavyweights also weakened in tandem, with the high-dividend segment under overall pressure and the dividend index down 2.19%; components and communications equipment had risen 9.14% and 8.91%, respectively, in the previous trading day and posted the largest declines on the day.