A-share Opening Express | The four major indices opened sharply lower, and the communications equipment sector led the decline

Opening data

The Zhitong Finance App learned that on November 6, the Shanghai Index opened 2.11% lower to 3612.15 points, the Shenzhen Index opened 3.72% lower to 11044.56 points, and the GEM Index opened 4.99% lower to 2438.72 points. Science Innovation 50 opened down 5.05% to 1221.67 points. As of 9:33, a total of 344 companies in the Shanghai and Shenzhen markets had risen, 5,200 had declined, and 35 were flat. The increase was highest: photovoltaic equipment, precious metals, large state-owned banks, aquaculture, white goods, etc.; the decline was the highest: communication equipment, components, glass fiber, automation equipment, non-metallic materials, electronic chemicals, etc.

The situation on the market

The four major indices opened lower across the board, and the GEM Index had the highest declines at the opening of the market with Science and Technology Innovation 50. The Shanghai Index opened at 3612.15 points, with an intraday low of 3610.20 points, then fluctuated and rebounded. As of 9:33, it fell 1.78% to 3624.04 points; the Shenzhen Index fell 2.61% to 11171.60 points, the GEM index fell 3.90% to 2466.71 points, and Science and Technology Innovation 50 fell 3.56% to 1240.87 points. All four declines narrowed from early trading lows.

In terms of structure, communication equipment led the decline by 8.21%, components fell 7.76%, glass fiber fell 5.48%, automation equipment fell 4.32%, non-metallic materials fell 4.27%, electronic chemicals fell 4.11%, semiconductors fell 4.04%; photovoltaic equipment bucked the trend and rose 1.30%, which was the only industry with an increase of more than 1%. Precious metals, large state-owned banks, aquaculture, and white goods increased slightly.

As of 9:33, the Shanghai and Shenzhen markets had risen 344, fell 5,200, closed 35, up and down 10, and 2. The number of rising companies accounted for about 6%, and most individual stocks were under pressure.

Overnight quick facts

US chip stocks fell sharply: On November 5, the Dow fell 3.44% to 51523.06 points, the S&P 500 fell 4.36%, the NASDAQ fell 5.52% to 24315.00 points, and the Philadelphia Semiconductor Index fell 12.25%, the biggest one-day decline since March 2020; on the morning of the 6th, the Korea Composite Index fell 8% to trigger a meltdown.

The financial work report clarifies the 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 review. The full text was released on November 5, clearly supporting the Central Huijin Company to play the role of an equalization fund, broaden medium- and long-term funding sources, channels and market entry methods, and consolidate and improve the capital market stabilization mechanism; interest rates were lowered to 1% from November 4.

The photovoltaic industry chain led the way in volume: On November 5, the volume of the A-share photovoltaic equipment sector strengthened, and market expectations for the continuation of clean energy tax credits after the US midterm elections heated up. Combined with a deep correction in the early stages, pessimistic expectations were fully absorbed, and capital returned to the solar energy industry chain; the precious metals and cultural media sectors strengthened simultaneously on the same day.

Trend analysis

The four major indices opened lower across the board, the Shanghai Index opened 2.11% lower, and the GEM Index and the Science Innovation 50 both fell by about 5%. The decline gradually narrowed after opening. Communications equipment, components, and semiconductors were drastically adjusted, and photovoltaic equipment, precious metals, large banks, and white goods bucked the trend, rising 344 and falling 5,200.

Overnight, the US stock AI industry chain was intensively sold off. The Philadelphia Semiconductor Index fell 12.25% in a single day, and risk appetite contracted to the A-share hardware chain; the banking, white goods, and aquaculture industries were defensive configurations and showed a slight upward trend, while the 1.30% increase in photovoltaic equipment was a continuation of the overnight reevaluation of US clean energy policy expectations. The two drivers were different. If the index is to be repaired, it still needs to cooperate.