A-share Market Open Brief | Four Major Indices Open Sharply Lower, Communication Equipment Sector Leads Declines

Opening Data On November 6, the Shanghai Composite Index opened 2.11% lower at 3,612.15 points, the Shenzhen Component Index opened 3.72% lower at 11,044.56 points, and the ChiNext Index opened 4.99% lower at 2,438.72 points. The STAR 50 opened 5.05% lower at 1,221.67 points. As of 9:33, a total of 344 stocks in the Shanghai and Shenzhen markets were up, 5,200 were down, and 35 were flat. Top gainers: photovoltaic equipment, precious metals, large state-owned banks, livestock farming, white goods, etc.; top decliners: communication equipment, components, glass and fiberglass, automation equipment, non-metallic materials, electronic chemicals, etc. Market Conditions All four major indices opened lower, with the ChiNext Index and STAR 50 posting the largest opening declines. The Shanghai Composite opened at 3,612.15 points, hit an intraday low of 3,610.20 points, then fluctuated higher and was down 1.78% at 3,624.04 points as of 9:33; the Shenzhen Component was down 2.61% at 11,171.60 points, the ChiNext Index was down 3.90% at 2,466.71 points, and the STAR 50 was down 3.56% at 1,240.87 points, with all four narrowing their declines from the morning lows. By sector, communication equipment fell 8.21% to lead declines, components fell 7.76%, glass and fiberglass fell 5.48%, automation equipment fell 4.32%, non-metallic materials fell 4.27%, electronic chemicals fell 4.11%, and semiconductors fell 4.04%; photovoltaic equipment rose 1.30% against the trend, the only sector with a gain of more than 1%, while precious metals, large state-owned banks, livestock farming, and white goods edged higher. As of 9:33, 344 stocks in the Shanghai and Shenzhen markets were up, 5,200 were down, and 35 were flat, with 10 hitting the daily limit-up and 2 hitting the daily limit-down; advancers accounted for about 6%, with most stocks under pressure. Overnight News at a Glance US chip stocks plunged: On November 5, the Dow fell 3.44% to 51,523.06 points, the S&P 500 fell 4.36%, the Nasdaq fell 5.52% to 24,315.00 points, and the Philadelphia Semiconductor Index fell 12.25%, its largest single-day drop since March 2020; on the morning of November 6, South Korea's KOSPI briefly fell 8%, triggering a circuit breaker. Financial work report clarifies market-stabilization mechanism: On November 3, the State Council's report on financial work was submitted to the 25th session of the 14th National People's Congress Standing Committee for deliberation, and the full text was released on November 5. It explicitly supports Central Huijin Investment Ltd. in playing a quasi-stabilization fund role, broadens medium- and long-term funding sources, channels, and market-entry methods, and consolidates and improves the capital market stabilization mechanism; the interest rate on relending for stock buybacks and increased holdings was cut to 1% effective November 4. Photovoltaic industry chain rallies on heavy volume: On November 5, the A-share photovoltaic equipment sector strengthened on heavy volume as market expectations grew that US clean energy tax credits would be extended after the midterm elections; combined with the sector's earlier deep correction and the relatively full digestion of pessimistic expectations, capital returned to the CECEP Solar Energy industry chain; precious metals and cultural media sectors also strengthened that day. Trend Analysis All four major indices opened lower, with the Shanghai Composite down 2.11% at the open and the ChiNext Index and STAR 50 both down about 5% at the open, with declines gradually narrowing after the opening. Communication equipment, components, and semiconductors saw sharp corrections, while photovoltaic equipment, precious metals, large banks, and white goods moved higher against the trend, with 344 stocks up and 5,200 down. Overnight, the US AI industry chain suffered concentrated selling, with the Philadelphia Semiconductor Index falling 12.25% in a single day, and the contraction in risk appetite transmitted to A-share hardware segments; banks, white goods, and livestock farming are defensive allocations and edged higher, while the 1.30% gain in photovoltaic equipment was a continuation of the overnight repricing of US clean energy policy expectations, with the two driven by different factors. For the indices to recover, volume will still need to confirm.