Evening highlights
1. The US midterm elections have landed, and the global stock market has collectively surged
Importance: ★★★★★
On November 4, the US midterm election results came to fruition. The Democratic Party defeated the Republican Party, and the global stock market strengthened collectively. In terms of A-shares, the Shanghai Composite Index closed up 2.16%, the GEM Index rose 6.40%, and the Science Innovation 50 Index closed up 9.92%. The semiconductor sector led the way, and the turnover of the two markets returned to more than 2 trillion yuan. According to a research report by Luo Zhiheng, chief economist of Guangdong Development Securities, the US midterm elections may have boosted global risk appetite, and both A-shares and Hong Kong stocks strengthened on the same day. According to Wall Street news, the Hang Seng Index closed up 1.67% and recorded four consecutive positives; as of 13:56, the German DAX Index had risen 2%, while the European Stoxx 50 Index and France's CAC 40 Index had risen more than 2%. US stocks opened at 22:30, and the Dow opened 623.51 points, up 1.20%, to 52410.23 points; the S&P 500 opened 0.88% higher and the Nasdaq Composite Index opened 1.11% higher. At one point, Dow futures surged more than 1,100 points before the market. On the market, Microsoft rose 4.6%, Amazon rose 6.8%, Tesla fell 5%, and SpaceX fell 5.3%; according to Wall Street news, the Democratic Party's victory removed the risk of political uncertainty on Wall Street, and tech billionaires were hit hard. Furthermore, the Shanghai Silver night market opened up more than 4%, Shanghai Gold rose more than 2%, and spot gold and silver prices rose 2.87% and 4.43% respectively on the same day.
2. Five departments including the Development and Reform Commission issued the “Action Plan for Implementing a Comprehensive Savings Strategy”
Importance: ★★★★
On November 4, five departments including the National Development and Reform Commission issued the “Action Plan for Implementing the Comprehensive Savings Strategy”, proposing that by 2030, the comprehensive savings system will be more complete. China's unit gross domestic product energy consumption, water consumption, and construction land use area will be reduced by about 10%, 10%, and 15%, respectively, compared to 2025, and the annual recycling capacity of major renewable resources will reach 510 million tons. The plan proposes to vigorously promote energy efficiency in key areas, promote energy saving and carbon reduction transformation of infrastructure such as computing power, communication base stations, and computer rooms, reduce the value-added energy consumption of industrial units above 2030 by more than 10% compared to 2025; accelerate the level of resource utilization, and reach about 4.5 billion tons of bulk solid waste per year by 2030.
3. International oil prices fell in the intraday period, WTI fell 3% during the day
Importance: ★★★
On the evening of November 4, international oil prices fell intraday. According to Wall Street news, Brent crude oil fell 2.0% within the day at 20:29 to 101.48 US dollars/barrel; WTI crude oil fell 3% to 93.21 US dollars/barrel during the day at 21.59.
4. CICC won the bid for the third batch of exchange facilitation of 16.3 billion yuan
Importance: ★★★
According to Wall Street news, the People's Bank of China recently launched a convenient exchange operation for securities, funds, and insurance companies. The amount of this operation was 100 billion yuan. Using a rate tender method, 31 securities and fund companies participated in the bid, and the winning bid rate was 10 bps. In this operation, CICC won bids totaling 16.3 billion yuan and completed the first batch of pledged repurchase transactions.
5. IPO suspension rumor first-line evidence: not a “one-size-fits-all”
Importance: ★★★
Recently, rumors about regulations suspending IPOs continued to ferment. According to a report by the Financial Services Association on November 4, the reporter learned from many industry insiders that some brokerage firms have received arrangements to slow down or even suspend the IPO process, but it is likely that they are tightening rather than “one-size-fits-all”; some industry insiders revealed that this move is related to recent secondary market performance. In combination with previous measures to gradually tighten the pace of IPOs, it may be more of a slowdown and tightening, which can be seen as a level 1 and 2 market adjustment.
6. ADP employment in the US increased by 86,000 in October, exceeding expectations
Importance: ★★★
According to Wall Street news, the number of ADP employees in the US increased by 86,000 in October, and is expected to increase by 67,000. The previous value was an increase of 90,000, increasing for 16 consecutive months.
7. Brain-computer interface technical standards and industrial application reference specifications released
Importance: ★★★
According to a report by the Securities Times on November 4, the “Brain-computer Interface Technical Standard and Industrial Application Reference Specification (1.0)” was officially released and launched. The reference specification was jointly formulated by industry experts from the four dimensions of product development, industrial investment, industrial application, and academic research and development, marking a substantial step in building consensus and standards for China's brain-computer interface industry.
Opportunity outlook
Zhitong Finance sorted out the most watched sectors and catalytic events of the day.
1. Storage: According to Counterpoint Research, the average global smartphone sales price rose 27% year on year to 442 US dollars in the third quarter, the highest level in history in a single quarter. Storage-driven price increases were an important support.
2. Cultivating diamonds: The Yellow River Cyclone subsidiary raised the price of large single crystal products (cultivating diamond blanks) by 10% from November 1, the second price increase in the year.
3. Energy storage: Sichuan issued a three-year action plan for the construction of new energy storage projects. From 2026 to 2028, the scale of new energy storage projects in the province will exceed 13 million kilowatts/26 million kilowatt-hours.
4. Low-altitude economy: The Guangdong Provincial Development and Reform Commission issued a notice to launch investment services for enterprises in the field of low-altitude economy; Ehang Intelligence released a heavy-duty fire eVTOL aircraft.
5. Innovative drug: Hengrui Pharmaceutical's marketing application for injectable carelizumab combined with apatinib mesylate tablets for first-line treatment of liver cancer was accepted by the US FDA.
Among them, the innovative drug sector is making intensive progress overseas. Hanyu Pharmaceutical's GLP-1R/GIPR/GCGR triple agonist HY3003 injection was approved for clinical trial by the US FDA; Kangzhe Pharmaceutical's lucotinib phosphate cream was approved for marketing by the Singapore Health Sciences Board. According to the China Post Securities Research Report, the summary of the 2026 Pharmaceutical Quarterly Report shows that the innovative drug industry chain continues to be booming, and the device sector has reached an inflection point.
Selected announcements
Positive announcements
1. Jerry shares: The wholly-owned subsidiary received three project award letters from the Abu Dhabi National Petroleum Company, with a total amount of about US$2,697 billion
2. Hengtong Optoelectronics: The controlling shareholder plans to increase its shares by 400 million yuan to 600 million yuan
3. Sanhuan Group: Plans to repurchase shares for 500 million yuan to 1 billion yuan
4. Gloria Ying: Plans to buy back shares for 500 million yuan to 700 million yuan
5. Tin Industry Shares: The controlling shareholder's parent company proposes to repurchase 100 million yuan to 200 million yuan of shares
Negative announcements
1. Tianshan Co., Ltd.: Received a notice of filing a case from the China Securities Regulatory Commission due to suspected illegal disclosure of information
2. Jiangsu Raleigh: Actual controller, director, and general manager Su Da was sued by the China Securities Regulatory Commission for allegedly disclosing information and reducing holdings in violation of laws and regulations
3. Easy: The controlling shareholder and actual controller received an administrative penalty decision, with a total forfeiture of 404.731 million yuan
4. Jimin Health: The controlling shareholder and actual controller plan to transfer 5% of the shares through a 160 million yuan agreement
What to see tomorrow
Tomorrow (November 5), follow: The People's Bank of China will launch a 300 billion yuan buyout reverse repurchase operation (period of 3 months), and the 9th CIIE will open.