A-share opening express | The National Standing Committee sets the tone for market stabilization mechanisms, leading the way for aerospace equipment

Opening data

The Zhitong Finance App learned that on November 9, the Shanghai Index opened 0.27% higher to 365.9.02 points, the Shenzhen Index rose 0.87% to 11273.28 points, and the GEM index rose 1.19% to 2494.63 points. Science Innovation 50 opened 1.11% to 1267.10 points. As of 9:31, a total of 4,530 companies in the Shanghai and Shenzhen markets had risen, 837 were down, and 212 were flat. The increase was highest: aerospace equipment, military electronics, motors, wind power equipment, kitchen and bathroom appliances, plastics, etc.; the decline was the highest: petroleum, banking, liquor, seed industry, etc.

Market conditions

The four major indices opened higher across the board. The GEM index opened 1.19% higher and the Shanghai Index opened 0.27% higher by the smallest margin. After the opening of the market, various indices declined slightly. As of 9:31, the Shanghai Index rose 0.22% at 365 7.05 points, the Shenzhen Index rose 0.73% at 11257.17 points, the GEM Index rose 0.77% at 2484.23 points, and the Science and Technology Innovation 50 report rose 1.02% at 1265.98 points. The increase was narrower than the opening but was still red across the board. The Shanghai Index had a high of 365 9.76 points and a minimum of 365 3.05 points at the beginning of the session, while the GEM index had a high of 2495.22 points and a minimum of 2483.65 points.

Structurally, space equipment, military electronics, space photovoltaics, physical AI, etc. strengthened simultaneously. Wind power equipment and photovoltaic equipment followed suit, and semiconductors rose slightly; petroleum, which had resisted the decline on the previous trading day, and banks that bucked the trend and recovered their profits turned back, and the liquor and seed industries declined slightly. The Shanghai and Shenzhen markets rose and stopped by 15 and 2. The number of companies that rose accounted for 81%. The general characteristics of the rise were obvious.

Overnight quick facts

The US Nasdaq index rebounded: on November 6, the Dow fell 0.46% to 51285.73 points, the NASDAQ rose 1.09% to 24579.42 points, the Philadelphia Semiconductor Index rose 4.2%, and AMD rose more than 11%; the US non-agricultural industry added 165,000 people in October, far exceeding market expectations of 65,000. Traders increased their bets on the December interest rate hike.

The National Standing Committee will set the tone for market stabilization mechanisms: On November 6, the executive meeting of the State Council proposed improving the capital market stabilization mechanism, enhancing stability within the stock market, and speeding up the construction of major projects and “six networks”; on November 3, the central bank launched the third batch of 100 billion yuan swaps and convenient operations, and brokerage firms such as CITIC and Cathay Pacific Haitong completed the first batch of stock purchases on the 6th.

The localization rate of lithography machines has exceeded 90%: At the 9th fair, Shanghai Microelectronics exhibited the SSC800 and SSB800 models of next-generation front-end dry-type lithography machines. The localization rate of key components has exceeded 90%. It has achieved standardized and large-scale mass production, and has supported more than 10 million streaming films in the head logic and storage mass production lines.

Trend analysis

The opening of the market showed a general upward pattern. More than 80% of individual stocks rose in the Shanghai and Shenzhen markets, leading the way, aerospace equipment and military electronics. Petroleum, which had resisted the decline on the previous trading day, and banks, which bucked the trend and gained profits, turned back from defense to subject matter. The drive comes from both the policy and the periphery. The National Standing Committee included improving the capital market stabilization mechanism, and funds under the interchange facility have already entered the stock buying process; the Philadelphia Semiconductor Index rose 4.2% on November 6, driving sentiment in the direction of hardware such as lithographers and semiconductors to recover.

The agency believes that the current A-share valuation and sentiment are close to the bottom threshold of previous markets. The bottom structure is relatively complete, but there is no obvious return of financing and transactional capital, and the rebound structure still needs further support from policy and incremental capital. Today's October CPI and PPI data have been released. CPI rose 0.7% year on year and PPI rose 5.7% year on year. The continuation of domestic demand recovery is still a follow-up observation window, and the index may remain volatile in the short term.