A-share Market Open Brief | All three major indices turn positive after opening lower, with ChiNext Index leading gains

Opening Data On November 11, the Shanghai Composite Index opened 0.22% lower at 3,655.66 points, the Shenzhen Component Index opened 0.32% lower at 11,205.35 points, the ChiNext Index opened 0.17% lower at 2,490.10 points, and the STAR 50 Index opened 0.39% lower at 1,260.07 points. As of 9:40 a.m., a total of 3,549 stocks in the Shanghai and Shenzhen markets were up, 1,693 were down, and 338 were flat, with 28 hitting the daily limit up and 1 hitting the daily limit down; turnover in the two markets was RMB212.245 billion, down RMB41.102 billion from the same period on the previous trading day. Top gainers: communications equipment, components, kitchen and bathroom appliances, auto services, plastics, etc.; top decliners: precious metals, film and cinema circuits, industrial metals, digital media, etc. Market Conditions All three major indices opened slightly lower, with the STAR 50 posting the largest opening decline. After the open, the indices fluctuated and rebounded. As of 9:40 a.m., the Shanghai Composite Index stood at 3,669.75 points, up 0.16%; the Shenzhen Component Index at 11,267.78 points, up 0.23%; the ChiNext Index at 2,514.84 points, up 0.82%; and the STAR 50 at 1,271.05 points, up 0.48%. All four indices had returned above their previous trading day's closing levels. Most sectors rose, with communications equipment, components, kitchen and bathroom appliances, and auto services leading, while optical chips, Broadcom concept and other computing-power hardware segments were active; precious metals, film and cinema circuits, and industrial metals posted the largest declines, with lithium mining and CRO concepts lagging. Overnight News at a Glance The three major U.S. indices all closed lower: on November 10, the Dow fell 0.30% to 52,231.89 points, the Nasdaq fell 0.74% to 25,065.87 points, and the S&P 500 fell 0.38% to 7,520.93 points. Nvidia fell 5.47%, bringing its two-day cumulative decline to about 9.5%; COMEX gold broke below US$4,100/oz during intraday trading, hitting a low of US$4,020.8. Institutions begin building positions under the swap facility: as of November 10, 13 securities firms had completed their first batch of stock purchases under the third batch of swap facility operations; the batch was launched on November 3, with an amount of RMB100 billion, and 31 securities and fund companies participated in the bidding, with a winning rate of 10 basis points. The relending facility for share buybacks and increased holdings has been converted into a long-term system: starting November 4, the interest rate on the relending facility for stock buybacks and increased holdings was lowered by 0.25 percentage points to 1%, the eligible institutions were expanded to 21 national banks and 5 systemically important city commercial banks, and the arrangement was converted from a phased measure into a long-term institutional arrangement. Total computing power ranks second in the world: the National Data Administration disclosed on November 10 that China's total computing power has reached 3.1 million PFLOPS, ranking second in the world; the National Technical Committee for Data Standardization on the same day established the Embodied Intelligence Data Standards Drafting Working Group and four industry application standards working groups for meteorology, health, electric power, and commerce. Trend Analysis After the open, the indices rebounded continuously from lows, with the Shanghai Composite and Shenzhen Component turning positive in succession, the ChiNext Index's gain at one point widening to more than 0.8%, and the STAR 50 turning positive in tandem; the number of advancing stocks across the market rose above 3,500, and the money-making effect improved markedly from the early session. Structurally, communications equipment and components in the computing-power hardware segment led gains, while precious metals and film and cinema circuits extended their adjustments, showing a pattern of broad index gains with sector divergence. Institutional consensus leans toward range-bound repair, with valuations and positioning pressure having been released and the rebound expected to continue, but the pace will depend on incremental capital, and structurally rotation is likely to remain dominant.