A-share afternoon review | The GEM index fell 3.50%, computing power and hardware fell sharply, and the seed industry strengthened

The Zhitong Finance App learned that on November 6, the three major A-share indices collectively opened sharply lower, then fluctuated at a low level. The Shanghai index failed to turn red in early trading, and the GEM index opened at its lowest point in the day. The market showed a pattern of “low index opening and consolidation, a sharp drop in computing power and hardware, and a strong defensive direction”. By the midday close, the Shanghai Index fell 1.14% to 3647.90 points, the Shenzhen Index fell 2.22%, the GEM Index fell 3.50%, and the Science Innovation 50 Index fell 2.09%. 911 A-shares in the Shanghai and Shenzhen markets rose, and 4,549 individual stocks fell. The Shanghai, Shenzhen and Beijing markets traded 1130.7 billion yuan in half a day. The Shanghai and Shenzhen markets shrunk by about 343 billion yuan compared to the previous trading day. In terms of capital, the Financial Services Association's monitoring data showed that in early trading, the main capital flowed into sectors such as railways, agriculture, forestry, animal husbandry and fishing, beauty care, etc., with a net outflow of over 11.7 billion yuan from the electronics sector.

Overview of the plate

On the upward side, the planting industry, railways, and banking sectors bucked the trend, with multiple stocks rising and falling in the power sector, individual media stocks such as television broadcasting, publishing, and some individual photovoltaic stocks bucked the trend; on the downside, the components, communication equipment, and electronic chemicals sectors had the highest declines, the PCB concept declined simultaneously, and computing power hardware such as CPO and optical fiber collectively declined. Overall, overnight, US technology stocks drastically adjusted and suppressed the A-share growth style. Capital was withdrawn from computing power and hardware to defensive directions such as planting and electricity. The entire market declined more and less, and active capital was concentrated in a few subject areas.

Popular sections

1. The seed industry sector opened low and moved high

The seed industry sector opened low and moved higher. Wanxiang Denong rose and stopped, and Xinsai shares rose and stopped in 3 days. Qiule Seed Industry rose more than 13%, Kangnong Seed Industry and Shennong Seed Industry rose more than 7%, and Denghai Seed Industry followed suit.

Comment: On the news, on November 6, the National Development and Reform Commission held the Endeavour “15th Five-Year Plan” series of press conferences. Huhe, deputy director of the Rural Economy Department, said that it is necessary to stabilize farmers' income expectations from growing grain and improve the benefit compensation mechanism for major grain-producing regions. At the press conference on the same day, Tang Yi, deputy director of the Economic Operation Regulation Bureau of the National Development and Reform Commission, said that due to the strong El Niño incident, the overall temperature in China is expected to be high this winter. However, there are slightly more frequent cold tides, warm and cold fluctuations, and extreme weather is likely to occur frequently. The National Climate Center confirmed that in September 2026, a super-strong El Niño event occurred in the equatorial Middle East and Pacific Ocean. October developed into the strongest El Niño event since monitoring records were recorded, and is expected to peak in late autumn and early winter; the World Meteorological Organization reported that the possibility that El Niño will continue until February 2027 is close to 100%. Also, according to data from the Thai Rice Exporters Association, the price of 5% crushed white rice in Thailand has risen to 499 US dollars per ton, the highest level since December 2024.

2. The electricity sector is picking up in the intraday market

The power sector picked up intraday. Lixin Energy, Xinneng Shares, and Dongfang Xinneng rose and stopped; Leshan Electric Power hit an intraday rise and stop, rising more than 8% in the afternoon, Huaneng Hydropower rose more than 3%, and Jiawei Xinneng followed suit. However, the rise and fall within the sector was divided. The number of companies that rose and fell in the electricity sector on the same day was about 56 to 109. The market was mainly concentrated in a few individual NEV power generation stocks.

Comment: According to the news, at the press conference of the National Development and Reform Commission on November 6, Ge Ju, deputy director of the Development Planning Department of the National Energy Administration, said that during the “15th Five-Year Plan” period, driven by emerging industries such as computing power, China's electricity demand will still grow rigidly. The average annual increase is expected to reach about 600 billion kilowatts, which is equivalent to the electricity consumption of 3 new Shanghai cities each year; Tang Yi, deputy director of the Economic Operation Regulation Bureau of the National Development and Reform Commission, said on the same day that the country's maximum electricity consumption is expected to reach about 1.52 billion kilowatts during the heating season, an increase of about 90 million kilowatts over the previous peak heating season kW.

3. Individual media stocks are partially active

The media sector was partially active in individual stocks. Zhejiang Film went up and down and out of the 5-game market. City Media, Shanghai Film, and Simei Media rose and stopped, Oriental Pearl rose more than 6%, and wireless media rose more than 7%.

Comment: At the industry level, the popularity of Chinese short dramas going overseas continues to heat up. The Chinese pinyin “duanju” has become an exclusive English word for short skits in overseas industry circles, and has been included in overseas encyclopedia websites. In terms of individual stocks, Zhejiang Film issued an announcement on abnormal stock trading fluctuations on the evening of November 5, stating that the cumulative closing price increase of the company's stock reached 46.67% for 4 consecutive trading days from November 2 to November 5. The Shanghai Composite Index rose 2.53% during the same period. After self-inspection, there were no major changes in the company's production and operation, and the controlling shareholders had no significant information that should be disclosed but not disclosed.

4. The computing power hardware sector fell sharply

The direction of computing power and hardware declined collectively, with the printed circuit board and component sector leading the decline. Cambridge Technology fell more than 9%, Shengyi Technology, Zhongji Xuchuang, Shenghong Technology, and Aohong Electronics fell more than 8%, Shanghai Electric Power Co., Ltd., Xinyisheng fell more than 7%, and Tianfu Communications and Shengyi Electronics followed the decline.

Comment: According to the news, US technology stocks experienced a sharp sell-off overnight. The Nasdaq Composite Index fell 5.52% on November 5, the Philadelphia Stock Exchange Semiconductor Index fell 12.25%, the biggest one-day decline since March 2020, and constituent stocks fell across the board. The market is concerned that the progress of artificial intelligence data center construction will slow down after the US midterm elections. The governor designate of Texas said that approval of new projects should continue to be suspended until the state legislature meets next year to formulate protective measures. According to the financial news agency's monitoring data, the net outflow of capital from the electronic sector in early trading exceeded 11.7 billion yuan.