Pre-market highlights
1. National Assembly: Improving the capital market stabilization mechanism and speeding up the construction of the “six networks”
Type: Macro Sentiment Impact: Positive
Premier Li Qiang of the State Council presided over an executive meeting of the State Council on November 6. The conference pointed out that improving the mechanism for stabilizing the capital market, enhancing stability within the stock market, and promoting the stable and healthy development of the capital market. The conference also pointed out that it is necessary to focus on continuing efforts in key areas, speed up the implementation of major projects and the “six networks” construction, and support enterprises to expand investment in equipment upgrades and intangible assets. Yue Xiuhu, a member of the party group and deputy director of the National Development and Reform Commission, presided over the meeting, emphasizing further improving the integration of planning plans, putting in place supporting policies as soon as possible, strengthening major project scheduling and capital and land guarantees, and ensuring the efficient and orderly progress of the “Six Zhang Network” construction.
2. US stocks closed last Friday with mixed ups and downs, and the NASDAQ rose 1.09%
Type: Market Sentiment Impact: Neutral
The three major US stock indices closed with mixed gains and losses last Friday. The Dow fell 0.46%, the NASDAQ rose 1.09%, and the S&P 500 index rose 0.32%. On a weekly basis, the Dow fell 0.94% last week, the NASDAQ fell 3.37%, and the S&P 500 index fell 2.68%. The number of non-farm payrolls in the US increased by 165,000 in October. It is estimated to increase by 65,000. The previous value was an increase of 29,000. The total number of people raised in August and September was 84,000. Interest rate futures are already priced close to 80% of the Federal Reserve's interest rate hike in December. On the same day, OpenAI completed a new round of financing of 11 billion US dollars at a valuation of 1.25 trillion US dollars. The initial funding commitment was paid on Friday.
3. The Shenzhen Stock Exchange revises the GEM index preparation plan to raise the maximum share weight limit for a single sample to 15%
Type: Market Sentiment Impact: Neutral
The Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. decided to revise the GEM index preparation plan and gradually adjust the weight limit for a single sample share to 15%. During the adjustment period, the upper weight limit and weight adjustment factor are only lowered but not increased. This revision will take effect on December 14, 2026 at the time of regular adjustments.
4. The news broadcast took 2 minutes and 36 seconds to report the acceleration of the construction of next-generation communication networks 5G-A and 6G
Type: Industry sentiment Impact: Positive
“News Broadcast” aired a 2 minute 36 second report on November 7, introducing the progress of the accelerated construction of next-generation communication networks. According to the report, next-generation communication networks are a key digital link that penetrates digital and physical entities and connects the present and future. They include mobile communication networks such as 5G, 5G-A, and 6G, as well as 10 gigabit optical networks, satellite internet, etc., to achieve deep integration of multiple functions such as communication, perception, computing, and intelligence. In the year the “15th Five-Year Plan” began, all regions accelerated the construction of next-generation communication networks and consolidated the foundation for high-quality development.
Investment calendar
November 9, China's October CPI and PPI data released
Institutional views
1. CITIC Securities: Technology stock valuations have reached a low level, seizing new opportunities for technology breakthroughs and application proliferation
2. Cathay Pacific Haitong: There is plenty of room for market adjustment during the year, and the market is currently at the bottom
3. Huayuan Research: Tariff expectations weaken compounded by rising interest rate hikes, copper prices fall under pressure
Positive and negative outlook
1. China's October CPI and PPI data released today
Type: Hot Market Discussion
Huafu Research: The price of pork was 15.15 yuan/kg in the current week, down 2.8% from the previous week. The food item's support for CPI weakened marginally. Focus on the October price data
2. The central bank raised the foreign exchange reserve ratio by 2 percentage points
Type: Policy Focus
SDIC Securities: The foreign exchange reserve ratio affects the RMB exchange rate through two channels of tightening domestic foreign exchange liquidity and guiding market expectations. The significance of the signal is greater than the essence. The increase is moderate this time
3. Implementation and promotion of physical AI applications
Type: Agency Hot Reviews
CITIC Securities: The certainty of AI applications is improving. Physical AI has ushered in the year of implementation, domestic computing power has entered a period of quantitative harvesting, focusing on technological upgrades and high-certainty opportunities for performance
Announcement Express
Positive announcements
1. Shennan Circuit: The controlling shareholder proposes that the total cash dividend for 2026 should not be less than 35% of net profit
2. Huaxin Construction: Plans to acquire 99.99% of Brazil's CSN CIMENTOS shares for approximately US$1,642 million
3. Tonghe Technology: Plans to invest 1.03 billion yuan to build an intelligent complete power supply equipment industrialization project with integrated computing power and energy storage
Negative announcements
1. Phoenix Shipping: Received a “Notice of Case Filing” from the Securities Regulatory Commission due to suspected illegal disclosure of information
2. Zhejiang Film Industry: Received a letter of supervisory work from the Shanghai Stock Exchange due to stock price fluctuations
3. Jinling Pharmaceutical: Termination of Investment Intent
Overseas markets
The three major US stock indices closed with mixed gains and losses last Friday. The Dow fell 0.46%, the NASDAQ rose 1.09%, and the S&P 500 index rose 0.32%. The weekly decline was 0.94%, 3.37%, and 2.68%, respectively. Non-farm payrolls in the US added 165,000 new jobs in October far exceeded estimates, and interest rate futures are already priced at close to 80% of the December rate hike.