A-share Midday Review | Shanghai Composite Index falls 0.24%, CPO concept rebounds, liquor stocks lead declines

On November 11, the three major A-share indices opened collectively lower, rallied in early trading before pulling back. The Shanghai Composite Index briefly turned positive before weakening again, while the Shenzhen Component Index also briefly turned negative during intraday trading. Subsequently, growth styles warmed up and the ChiNext Index fluctuated higher. The market presented a pattern of "index divergence, computing power hardware rebound, and consumer heavyweight pullback." As of the midday close, the Shanghai Composite Index fell 0.24% to 3,654.95 points, the Shenzhen Component Index rose 0.11% to 11,253.67 points, and the ChiNext Index rose 0.99% to 2,519.14 points. More than 2,700 stocks in the overall market rose, while over 2,600 declined. Half-day turnover across the Shanghai and Shenzhen markets totaled RMB928.3 billion, a shrinkage of RMB32 billion from the previous trading day. On the capital flow front, data from Hithink RoyalFlush Information Network showed that the CPO concept saw a net inflow of RMB10.992 billion in main funds, and the 5G concept saw a net inflow of RMB10.764 billion. Market Overview On the trading floor, on the upside, computing power hardware sectors such as CPO and optical communication modules rebounded. Siasun Robot&Automation, gas, and gaming sectors showed active performance, while components and printed circuit boards strengthened in tandem. On the downside, liquor, dairy, photovoltaic equipment, precious metals, and aviation/airport sectors led the declines. Overall, overnight weakness in U.S. tech stocks and Nvidia's single-day drop of 5.53% weighed on A-shares, which opened lower in the morning session. Capital withdrew from consumer heavyweights such as liquor and flowed back into computing power hardware and thematic directions. The Shanghai Composite Index edged into negative territory dragged by consumer stocks, while the ChiNext Index turned positive on the strength of growth styles. The number of advancing and declining stocks was nearly evenly split, with profit-making effects concentrated in a few themes. Hot Sectors 1. CPO Concept Fluctuates and Rebounds The CPO concept fluctuated and rebounded. Cig Shanghai resumed its limit-up, Fujian Qingshan Paper Industry hit limit-up, T&S Communications rose over 12%, and Eoptolink Technology Inc., Yuanjie Semiconductor Technology, and Zhongji Innolight rose over 8%. Commentary: On the news front, on the evening of November 10, Cig Shanghai released an investor relations activity record disclosing that as of the end of September 2026, revenue from the company's high-speed optical module business accounted for more than 50% of operating revenue, with 800G products accounting for the vast majority of high-speed optical module shipments. As of early September, the company had basically formed a monthly design capacity of approximately 1 million units for high-speed optical modules and plans to expand annual capacity for high-speed optical module products by at least an additional 10 million units on top of existing capacity before the end of 2027, with new capacity allocated to Jiashan, China, Malaysia, Mexico, and the United States to meet anticipated customer demand for 800G, 1.6T, and NPO products. The company also stated that it currently has ample orders in hand and has placed advance orders for multiple key materials to lock in capacity. 2. Siasun Robot&Automation Concept Repeatedly Active The Siasun Robot&Automation concept was repeatedly active. Reach Machinery hit the 20% limit-up, Zhejiang RIFA Precision Machinery, Hanwang Technology, and Ningbo Donly hit limit-up, Zhejiang Fenglong Electric and Changzhou Nrb Corporation recorded three consecutive limit-ups, Shanghai Fengyuzhu Culture Technology recorded two consecutive limit-ups, and Fuxin Dare Automotive Parts and Jiangsu Beiren Smart Manufacturing Technology rose over 10%. Commentary: On the news front, on November 10, the National Data Standardization Technical Committee held the second "Standards Week" event of 2026 in Xiamen, Fujian, where it officially established the Embodied Intelligence Data Standard Drafting Working Group and four industry application standard drafting working groups for meteorology, health, electric power, and commerce. Data disclosed at the same event showed that China's total computing power has reached 3.1 million PFLOPS, ranking second in the world. In addition, according to Shanghai Securities News, JD.com data showed that as of 18:00 on October 30, sales of intelligent humanoid Siasun Robot&Automation during the first half of Double 11 increased 700% year-on-year. 3. Gas Sector Rallied Intraday The gas sector rallied intraday. Senton Energy and Xinjiang East Universe Gas hit limit-up, with Xinjiang East Universe Gas recording three consecutive limit-ups. Shandong Shengli rose over 8%, Foran Energy Group rose over 5%, and Shuifa Gas Co., Ltd. followed higher. Commentary: On the news front, according to Cailianshe, meteorological authorities forecast that due to the impact of a super El Nio event, temperatures across China this winter are expected to be generally higher than normal, but the frequency of cold waves will be slightly higher, with large temperature fluctuations and extreme weather possibly occurring frequently, which will pose challenges to energy supply security. During this winter's heating season, the daily peak-shaving supply capacity for natural gas exceeds 1.75 billion cubic meters, nearly 70 million cubic meters higher than the peak gas consumption of the previous heating season. 4. Liquor Sector Fluctuates Lower The liquor sector fluctuated lower, with the sector index falling 3.04%. Gansu Huangtai Wine-Marketing Industry fell over 5%, Jiangsu King's Luck Brewery Joint-Stock, Anhui Gujing Distillery, and Jinhui Liquor fell over 4%, Shanxi Xinghuacun Fen Wine Factory and Luzhou Laojiao fell over 3%, while Wuliangye Yibin and Jiangsu Yanghe Distillery followed lower. Commentary: On the news front, according to Sina Finance's "Liquor Price Insider" data on November 11, the average terminal retail prices of the 12 major single products included in the statistics showed three rises, eight declines, and one flat, with declining varieties clearly outnumbering gainers, and the overall price level hitting new two-month lows repeatedly. Among them, the average retail price of Feitian Moutai fell RMB3 to RMB1,770, declining for the second consecutive day; Gujing Gonggu 20 fell RMB7 to RMB510; and Yanghe Dream of Blue M6+ fell RMB7 to RMB580. In addition, Kweichow Moutai held its third-quarter earnings briefing on November 10, where company director Wang Li (acting general manager) stated that the liquor industry remains in deep adjustment, and the trends of weak consumer demand and reduced consumption scenarios have not fundamentally changed.