Evening highlights
1. National Standing Committee: Improve the capital market stabilization mechanism and enhance stability within the stock market
Importance: ★★★★
Li Qiang presided over an executive meeting of the State Council on the 6th. The conference pointed out that it is necessary to improve the capital market stabilization mechanism, enhance stability within the stock market, and promote the stable and healthy development of the capital market. The conference proposed speeding up the implementation of major projects and the construction of the “Six Networks”; supporting enterprises to expand investment in equipment upgrades and intangible assets; strengthening online and offline linkages between consumption and urban and rural areas; unblocking the virtuous cycle of investment and consumption; carefully studying next year's economic work ideas and strengthening the New Year's Eve policy interface.
2. Non-farm payrolls in the US increased by 165,000 in October, and traders increased their bets on the December interest rate hike
Importance: ★★★★
According to the US Bureau of Labor Statistics, the number of non-farm payrolls in the US increased by 165,000 in October, higher than market expectations. The unemployment rate fell to 4.1%, and the market expected 4.2%; the total number of non-farm payers increased by 84,000 in August and September. The average hourly wage in October increased by 3.1% year on year, higher than market expectations of 2.9%. After the data was released, traders increased their bets on the Federal Reserve's interest rate hike in December. The two-year US Treasury yield once rose 7 basis points to 4.54%; as of 13:33 Beijing time, the spot gold price had fallen by more than 1% to 4041.89 US dollars/ounce.
3. The Shenzhen Stock Exchange revises the GEM index preparation plan, and the maximum weight limit for a single sample share will be raised to 15%
Importance: ★★★
On November 6, the Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. announced the revised GEM index preparation plan to gradually adjust the maximum weight of a single sample share to 15%. The adjustment method is: during each regular adjustment period, if the actual weight of the largest sample stock exceeds 14.5% at the time of the regular adjustment, then the actual weight is added by 0.5% and rounded up as the upper weight limit for the adjusted single sample share. The upper weight limit and weight adjustment factor during the adjustment period are only lowered and not increased. This revision will take effect on December 14, 2026 at the time of regular adjustments.
4. Six brokerage firms completed the third batch of convenient swap operations and landed the first batch of stock investments
Importance: ★★★
On November 6, six brokerage firms, including CICC, Cathay Pacific Haitong, CITIC Securities, Galaxy Securities, China Merchants Securities, and Orient Securities, completed the third batch of “convenient exchange of securities, funds, and insurance companies” operations, and landed the first batch of stock investments. CICC said it will continue to use funds obtained from the swap facilitation business to further increase its stock holdings. Furthermore, Shenwan Hongyuan Securities has begun implementing the third batch of swap facilitation operations, and the first two batches of credits have all been used to invest in A-shares and stock ETFs.
5. TSMC is considering entering advanced memory chip manufacturing
Importance: ★★★
According to The Information, TSMC is considering entering the field of advanced memory chip manufacturing. At the request of its largest customer, Nvidia, it has recently begun planning a 3D DRAM production plan. It may choose to build a new factory or transform it for memory chip production after acquiring an existing factory. TSMC responded that it would not comment on market rumors and speculations. The AI hardware boom has spawned a shortage of memory chips. Earlier this year, Apple raised the price of terminal products on the grounds of rising storage costs.
6. The National Development and Reform Commission held a symposium on private enterprises to listen to opinions and suggestions on next year's policy initiatives
Importance: ★★★
On November 6, Zheng Zhajie, director of the National Development and Reform Commission, hosted a private enterprise symposium to have in-depth exchanges with heads of Hengyi Group, Yulong Petrochemical, TCL, Twins Group, Power Diamond and other enterprises in the fields of petrochemicals, electronics manufacturing, pig breeding, superhard materials, etc., to listen to opinions and suggestions on implementing economic work during the year and studying next year's policy initiatives. Zheng Zhajie said that most of the difficult problems currently faced by private enterprises are difficulties in development and problems in progress. The National Development and Reform Commission will work together to promote the commencement of construction of major projects under the “15th Five-Year Plan” and the “Six Networks” implementation plan, and continue to stimulate the vitality of private investment.
7. The Ministry of Commerce initiated an anti-dumping investigation against two types of imported products originating in the European Union
Importance: ★★★
On November 6, the Ministry of Commerce initiated an anti-dumping investigation against imported counteraramid filaments originating in the European Union and imported ethylboronidene from the European Union and Japan. The dumping investigation period was from July 1, 2025 to June 30, 2026. In response to reporters' questions, a Ministry of Commerce spokesperson said that since 2026, the European Union has initiated 16 trade remedy investigations involving China, and the number of cases has nearly doubled over the same period last year, including 9 cases involving chemical products, accounting for nearly 60%.
Opportunity outlook
Zhitong Finance sorted out the most watched sectors and catalytic events of the day.
1. Copper clad plate: Shengyi Technology's revenue and gross margin reached record highs in the third quarter, and the performance of leading copper clad plates in mainland China continued to increase.
2. Memory chips: Counterpoint reports that the price of next-generation HBM continues to rise, and the revenue of major storage vendors is expected to break new records in the fourth quarter. Changxin Storage's DRAM market share in the third quarter increased to 9% from 5% in the same period last year.
3. Computing power interconnection: TrendForce Jibang Consulting estimates that the global AI network and interconnection output value will reach US$279.8 billion in 2027, with a compound growth rate of 95% from 2024 to 2027.
4. Robotics: The Ministry of Industry and Information Technology deployed robot product identification codes, and Beijing held a mobilization and deployment meeting to promote the connection between the robot's “one machine, one code” mechanism and industrial policy.
5. Construction machinery: According to statistics from the China Construction Machinery Industry Association, 2,225 excavators of various types were sold in October, up 11.8% year on year, of which 10,724 were exported, up 11.4% year on year.
Among them, the performance of the copper-clad plate sector was catalytically concentrated. According to the November 6 research report of Huaxi Securities, demand for copper clad plates was strong, and the overall gross margin of Shengyi Technology increased by 9 percentage points month-on-month in the third quarter, and the valuation was once again attractive after continuous market adjustments; the bank expects the company's earnings per share to be 4.08 yuan and 6.09 yuan respectively from 2026 to 2027, maintaining an “increase” rating; as the leading copper clad board in mainland China, the company has strong bargaining power, and has high-quality assets from Shengyi Electronics, which resonates with the upstream and downstream industries.
Selected announcements
Positive announcements
1. Wuliangye: Implementation of the controlling shareholders' holdings increase plan was completed, with a cumulative increase of 409.675 million shares and an increase of 3,014 billion yuan
2. Luoyang Molybdenum Industry: Plans to buy back shares for 1 billion yuan to 2 billion yuan
3. Jingzhida: The company and its holding subsidiary have successively signed semiconductor test equipment procurement contracts, with tax-inclusive amounts of 1,311 billion yuan and 1,576 billion yuan respectively
4. Shanghai Electric Power Co., Ltd.: The chairman proposed to buy back shares for 500 million yuan to 1 billion yuan
5. China Alcoa International: Plans to sign an EPC general contracting contract for the alumina project in Guinea of about 6.556 billion yuan
Negative announcements
1. Tiansheng New Materials: Received an advance notice of administrative penalties, suspected of not promptly disclosing related transactions and major omissions in the 2023 annual report. The company plans to be fined 4.5 million yuan, and the chairman is to be fined 4.9 million yuan
2. Dengkang Dental: Shareholder Zhongbai Group reduced its holdings by 1.74%, and the implementation of the holdings reduction plan was completed
3. Palm Reading Technology: Shareholder Zhang Lingyun reduced its holdings by 0.70% and reduced its shareholding ratio to 20%. It is planned to continue to reduce its holdings within the next 12 months
4. Huiyu Pharmaceutical: Shareholder Huang Qianyi's shareholding ratio fell to 4.99% after reducing his holdings, and the holdings reduction plan has not yet been implemented
5. Yazhen Home: Shareholder Yazhen Investment's holdings reduction hit the 1% scale, and the shareholding ratio fell to 8.46%
What to see tomorrow
Next Monday (November 9) Follow: He Lifeng will go to Canada to host the second Sino-Canadian Economic and Financial Strategy Dialogue