A-share review | Shanghai index fell 0.82%, GEM index fell 2.73%, farming and insurance bucked the trend

The Zhitong Finance App learned that on November 3, the three major A-share indices collectively opened lower. After the initial trading session, the Shenzhen market fluctuated and rebounded, and the GEM index became popular for a while. The GEM index weakened again in the afternoon. The five major indices fell across the board at the close, and the GEM index fell below 2,400 points. The Shanghai Stock Exchange closed at 3608.10 points, down 0.82%; the Shenzhen Stock Exchange closed at 10876.99 points, down 1.21%; the GEM index closed at 2391.65 points, down 2.73%; Science and Technology Innovation 50 closed at 1151.28 points, down 3.81%; and the Beijing Stock Exchange 50 closed at 855.06 points, down 4.02%. The Shanghai and Shenzhen markets traded 173.435 billion yuan, down 806.1 billion yuan from the previous trading day; SSE 50 ETF Huaxia, GEM ETF E-Fangda, Shanghai and Shenzhen 300 ETF Huatai Berry, and Science Innovation 50 ETF Huaxia all surpassed 10 billion yuan on the same day. This is the first time since the “924 Market” in 2024 that 4 broad-based ETFs traded over 10 billion yuan on the same trading day.

In the entire market, 2108 stocks rose, 3,309 fell, 161 were flat, 52 were up and down, and 22 were down. The share of rising individual stocks was about 37.8%. In terms of sectors, aquaculture, insurance, construction machinery, liquor, feed, and batteries registered the highest gains, communications equipment, components, semiconductors, electronic chemicals, and consumer electronics registered the highest declines, while optics and optoelectronics fell 1.40%.

driving factors

There is a clear differentiation at the index level. The Shanghai Stock Exchange 50 bucked the trend and rose 0.21%, the Shanghai and Shenzhen 300 fell 0.20%, and the Shanghai Index fell 0.82%, while the GEM Index fell 2.73%, Science and Technology Innovation 50 fell 3.81%, and the Beijing Stock Exchange 50 fell 4.02%. GEM indicates that semiconductors, communication equipment, and components have a higher weight in the Science and Technology Innovation 50. The Beijing Stock Exchange 50 component stocks mainly grow in small capitalization and are more sensitive to falling risk appetite.

According to the news, on November 2, the People's Bank of China, together with the Financial Supervisory Authority and the Securities Regulatory Commission, held a symposium on swap facilitation and stock repurchase and refinancing to clarify that the stock repurchase and increase reloan policy was changed from phased arrangements to long-term institutional arrangements, and interest rates were reduced from 1.25% to 1%; on November 3, the central bank announced the launch of a convenient swap operation for securities, funds, and insurance companies, amounting to 100 billion yuan. Using the rate bidding method, 31 securities and fund companies participated in the bid and won the bid rate of 10 bps.

Overseas, on November 2, the NASDAQ fell 1.07%, the Philadelphia Semiconductor Index fell 3.37%, leading the decline in optical communications and storage stocks; on November 3, Korea's KOSPI index closed down 3.59% to 5648.79 points, SK Hynix fell 5.03%, and Samsung Electronics fell 4.15%.

At the industry level, the total revenue of 19 liquor companies in the first three quarters was 267.822 billion yuan, down 7.61% year on year, and net profit to mother was 97.368 billion yuan, down 9.55% year on year. Guangfa Securities statistics showed a year-on-year decline of 18.5%. Among them, the single-quarter decline narrowed to 6.5% in the third quarter. Liquor II rose 2.35% on the same day, and Huangtai Liquor gained 3 consecutive gains.

Popular sector aspects

1. Aquaculture and aquaculture

The aquaculture industry rose 3.49%, ranking first in Shenwan's second-level industry. Feed rose 2.35%, poultry concepts rose 2.93%, and aquatic products concepts rose 2.36%. Superstar Farming & Animal Husbandry rose 6.90% to 14.57 yuan, Shennong Group rose 6.38% to 31.70 yuan, Baiyang shares reported an increase of 12.36 yuan, and Oriental Ocean reported an increase of 3.42 yuan. According to the news, COFCO simultaneously carried out the lowest purchase price purchase and reserve rotation acquisition for middle to late rice. The progress was faster than in the same period last year. The supporting system for intellectual property protection in the seed industry was implemented on November 1, and monitoring by the National Climate Center showed that a strong El Niño incident had formed in September 2026.

2. Insurance

Insurance II rose 2.86%; China Taibao rose 4.03% to 32.25 yuan, leading the sector; China Ping An rose 2.77% to 54.59 yuan; China Life Insurance rose 2.57% to 35.90 yuan; and Xinhua Insurance rose 2.45% to 52.18 yuan. According to the news, on November 3, the central bank announced the launch of a convenient exchange operation for securities, funds, and insurance companies. The amount was 100 billion yuan, and 31 securities and fund companies participated in the bid and won the bid rate of 10 bps. At the same time, the stock repurchase policy to increase holdings and refinancing was changed to a long-term institutional arrangement, and interest rates were reduced from 1.25% to 1%. Cathay Pacific Haitong Securities believes that current stock prices reflect extremely pessimistic investment-side expectations, and that there is room for valuation repair for listed insurers under a steady recovery in interest rates.

3. Battery

Batteries rose 2.32%; Shangshui Smart 20CM rose to 54.78 yuan; Mustang Battery, Fengyuan Co., and Longpan Technology rose and stopped; Zizhu Hi-Tech reaped 2 consecutive board reports of 21.13 yuan; and Ningde Times rose 3.80% to 249.32 yuan. According to the news, industry media reported that Sichuan Quan Solid-State New Materials, a key raw material for all-solid-state batteries, has completed Series A financing of tens of millions of yuan, and the sodium-ion battery concept is active simultaneously.

Adjust the section

Communications equipment fell 8.37%, components fell 7.66%, semiconductors fell 5.42%, electronic chemicals II fell 5.10%, and consumer electronics fell 2.62%, making it Shenwan's second-tier sector with the highest decline on the same day. Zhongji Xuchuang dropped 12.69% to 480.20 yuan and fell below the 500 yuan mark. Tianfu Communications dropped 12.80% to 123.61 yuan, Yuanjie Technology fell 10.78% to 604.90 yuan, Xinyi Shengsheng fell 9.46% to 173.36 yuan, Cambrian dropped 10.81% to 767.93 yuan, and Shengyi Technology and Demingli fell to a halt.

The above direction has continued to be adjusted since late September, with the Communications Equipment, Components, and Semiconductor Shenwan Level 2 Index falling by 39.62%, 38.20%, and 28.70% respectively from September 30, and the decline continued to be the highest on the same day. According to news, Goldman Sachs lowered Zhongji's 2026-2028 net profit forecast by 17%, 6%, and the target price for A-shares was lowered from HK$2,645 to HK$2,829, maintaining the “buy” rating.