A-share Evening Highlights | PBOC Reiterates Moderately Loose Policy; Memory Manufacturers' Official Q4 Prices Rise Slightly

Evening Highlights 1. PBOC: Committed to Implementing a Moderately Loose Monetary Policy, Intensifying the Two Monetary Policy Tools Supporting the Capital Market Importance: The PBOC released its Q3 2026 China Monetary Policy Implementation Report at 18:00 on November 11. The report stated that in the next stage, it will adhere to implementing a moderately loose monetary policy, enhance the forward-looking, flexible, and targeted nature of policy, maintain ample liquidity, and ensure that the growth of social financing scale and money supply matches the expected targets for economic growth and overall price levels. In the section on preventing and resolving financial risks, the report proposed expanding and enriching the central bank's macroprudential and financial stability functions, enriching and improving the toolbox, intensifying the two monetary policy tools supporting the capital market, making good use of the bond market non-bank large redemption swap facility, and maintaining the stable operation of financial markets including stocks, bonds, and foreign exchange. The report disclosed that GDP grew 4.6% year-on-year in the first three quarters; at end-September, the stock of social financing scale and broad money supply (M2) grew 7.1% and 7.2% year-on-year respectively; the interest rate on newly issued corporate loans in September was slightly below 3.0%, about 0.2 percentage points lower than the same period last year. On structural tools, the report said it will include the construction of the "six networks" in the scope of pledged supplementary lending support, increase the re-lending quota for technological innovation and technological upgrading by RMB200 billion, raising the support ratio from 60% to 100%, increase the re-lending quota for agriculture and small businesses by RMB500 billion, of which the re-lending quota for private enterprises will increase by RMB300 billion. 2. Microsoft and Others Lobby US Government to Abandon Optical Module Import Restrictions; A-Share Optical Communications Supply Chain Strengthens Importance: According to China News Service and Shanghai Securities News, Microsoft and several other international tech companies have been lobbying the US government to abandon its plan to ban imports of new-model optical transceivers from China. Such equipment is used within data centers to transmit data at the speed of light and is a key component of AI data centers; the companies believe the ban could further slow data center construction. Affected by this, A-share computing power hardware stocks strengthened on November 11. According to East Money Information statistics, the CPO concept, optical communication module, and optical fiber concept sectors rose 5.83%, 5.33%, and 4.71% respectively that day. As of close, the Shanghai Composite Index stood at 3,680.64 points, up 0.46%; the Shenzhen Component Index at 11,389.74 points, up 1.32%; the ChiNext Index at 2,572.07 points, up 3.11%. Combined turnover of the Shanghai and Shenzhen markets was RMB1.6763 trillion, up RMB171.5 billion from the previous trading day. 3. Philadelphia Semiconductor Index Opens Up 4.5%, Recovering All of November 5's Losses Importance: According to Cailian Press, at the US market open on November 11, the Dow Jones rose 0.18%, the S&P 500 rose 0.96%, and the Nasdaq Composite rose 1.53%. The Philadelphia Semiconductor Index opened up 4.5%, recovering all of the 12% decline on November 5. Among individual stocks, SanDisk rose 9.65%, Coherent rose 10.01%, SK Hynix rose 7.42%, Micron Technology rose 6.98%, Intel rose 6.77%, Lumentum rose 10.39%, Broadcom rose 5.19%, TSMC rose 4.19%, and Nvidia rose 2.72%; the triple-leveraged semiconductor ETF (SOXL) rose 14.06%. AI cloud computing service providers also strengthened in tandem: CoreWeave rose 14% after Q3 revenue grew 168% year-on-year and it raised its full-year revenue guidance; Nebius rose 12%. 4. State Taxation Administration: Individual Income Tax on Offshore Trusts Cumulatively Declared Exceeds RMB160 Billion Importance: The State Taxation Administration announced on November 11 that the transition period for the tax policy on offshore trust income has ended smoothly, with the vast majority of taxpayers actively cooperating, and cumulative declarations of individual income tax on offshore trusts exceeding RMB160 billion, of which over RMB120 billion was paid into the treasury in October alone, driving a nearly 90% increase in national individual income tax revenue in October. On July 24, 2026, the Ministry of Finance and the State Taxation Administration issued the "Announcement on Matters Concerning Individual Income Tax on Offshore Trusts," stipulating that taxpayers receiving offshore trust income must complete declaration and tax payment within a 90-day transition period, without late payment surcharges. A relevant official from the STA's Income Tax Department said that next, for taxpayers who make false declarations or fail to proactively declare after the transition period ends, authorities will urge them to declare and pay taxes in accordance with the law and impose late payment surcharges as stipulated; those who still fail to declare or make false declarations after being urged will be placed on file for inspection in accordance with the law. 5. Memory Manufacturers' Official Q4 Prices Rise Slightly Importance: According to multiple sources cited by Cailian Press on November 11, memory manufacturers' official Q4 prices indeed show a slight upward trend. On the interactive platforms of the Shanghai and Shenzhen stock exchanges that day, Ingenic Semiconductor said DRAM demand is strong and capacity is tight, and it has completed price adjustments for most customers. US memory stocks strengthened in tandem, with Micron up 7.02%, SanDisk up 8.93%, SK Hynix up 7.42%, Western Digital up 6.33%, and Seagate Technology up 8.20% at the open that day. 6. US Dollar Spot Index Rises to Highest Since May 2025 Importance: According to Cailian Press, the US dollar spot index climbed to its highest level since May 2025 on November 11. According to stockq.org data, the US dollar index stood at 102.35, up 0.11%; the euro index fell 0.50%, and the pound index fell 0.68%. 7. Iran: If the US Aggresses Again, It Will Strike All Remote US Military Bases Importance: Rezaei, Secretary of Iran's Supreme National Security Council, said on November 11 that if the US makes a mistake and launches an attack against Iran, Iran's retaliation will not be limited to nearby US military bases but will also strike all remote US bases. He also said that if US aircraft take off from bases in European countries to strike Iran, Tehran will target the US military bases in those countries. According to CCTV News, the Kremlin said the same day that a meeting between Russian President Putin and US President Trump on the sidelines of the APEC meeting is being prepared; Russian presidential aide Ushakov said Putin will meet US special envoy Witkoff and Kushner on Thursday morning. 8. China and Canada Agree to Extend Certain Market Access Arrangements to 2028 Importance: According to China Daily on November 11, the second China-Canada Strategic Economic and Financial Dialogue was recently held in Vancouver, where both sides agreed to extend preferential market access for Canadian canola meal, peas, lobster, and crab to the end of 2028; Canada agreed to extend tariff relief on certain Chinese steel and aluminum products to 2028. Both sides also agreed to strengthen cooperation in financial services market access, capital markets, and exchanges between financial regulators. According to General Administration of Customs data, China-Canada trade totaled RMB615.69 billion in the first 10 months of this year, up 14.3% year-on-year, with China's imports from Canada up 20.1%. Opportunity Outlook GMTEight summarizes the sectors with the highest attention and their catalyst events for the day. 1. Computing Power Center Power Supply: Qingdao TGOOD Electric signed a centralized procurement contract for computing power center power cabins with Internet company A, with total contract value estimated at RMB250 million. 2. Hog Farming: Third-party monitoring shows the national average hog price has fallen below the previous low of this cycle. 3. AI Servers: Super Micro Computer's H15 server series has begun shipping, equipped with AMD's sixth-generation EPYC 9006 series processors, offering up to a 33% increase in core count. 4. Copper-Clad Laminates: Shengyi Technology said it has not received any notice of order cancellations from end customers, production and operations are normal, and orders are full. 5. Compound Semiconductors: Yunnan Lincang Xinyuan Germanium Industry said its existing indium phosphide wafer capacity and capacity under construction have been locked up by customers through the end of 2027. Among these, the second bottoming of hog prices has drawn institutional attention to capacity reduction. A Huatai research report shows that as of November 9, the Yongyi national average hog price was RMB8.6/kg, falling below the previous low of this cycle; the institution believes the recent second bottoming of hog prices exceeded market and industry expectations, mainly because industry supply and inventory pressure remain large while consumer demand absorption is weak, and the lackluster peak season for hog farming in Q4 is basically confirmed. Huatai said the market outlook may drive breeding sow capacity reduction to exceed expectations, opening up room for far-term hog price elasticity and sustainability, while sector positioning remains at a relative bottom, and reiterated the opportunity to position in the hog sector. Announcement Highlights Positive Announcements 1. China CSSC: Subsidiaries signed construction contracts for 20 VLCC crude oil tankers, with total value of approximately RMB17.2 billion 2. CNGR Advanced Material: Controlling shareholder plans to increase holdings by RMB500 million to RMB1 billion 3. Jiangxi Copper: Plans to repurchase RMB300 million to RMB500 million of company shares 4. CMOC Group Limited: Obtained a commitment letter for a special loan of up to RMB1.8 billion for share repurchase 5. Sinomine Resource Group: Controlling shareholder, actual controller, and others committed not to reduce holdings for 12 months Negative Announcements 1. Shenyang Cuihua Gold and Silver Jewelry: Last trading day is November 12; listing will be terminated upon expiration of the trading period 2. Dong Yi Ri Sheng Home Decoration Group: Shareholder Tianjin Chenshang cumulatively reduced 0.9988% of shares, with shareholding ratio dropping to 5.9991% 3. Suzhou Hesheng Special Material: Terminated the 2026 simplified procedure issuance of shares to specific targets 4. Cultural Investment Holdings: AI comic-drama related business revenue accounts for approximately 2.57% of operating revenue 5. Changzhou Nrb Corporation: Siasun Robot&Automation business is still in the market expansion stage, with relatively low revenue share and not yet profitable Tomorrow's Focus Watch on November 12: A total of approximately 1.29 billion restricted shares from 10 companies will be unlocked, of which SPIC Hydropower will have 1.184 billion shares unlocked, accounting for 24.86% of total share capital; Shenyang Cuihua Gold and Silver Jewelry ushers in its last trading day. Relevant arrangements are subject to exchange and company announcements.