A-share evening hot spots | Pan Gongsheng: Maintaining the smooth operation of financial markets such as stocks, bonds, and foreign exchange

Evening highlights

1. The central bank raised the foreign exchange reserve ratio to 6%, which will be implemented from November 15

Importance: ★★★★★

On November 3, the People's Bank of China issued an announcement. In order to strengthen the foreign exchange liquidity management of financial institutions, it decided to increase the foreign exchange reserve ratio of financial institutions by 2 percentage points from November 15, 2026, that is, the foreign exchange reserve ratio from the current 4% to 6%.

According to an analysis by Wen Bin, chief economist at China Minsheng Bank, the RMB has continued to strengthen recently, and raising the foreign exchange reserve ratio will tighten domestic dollar liquidity and ease the pressure on RMB appreciation; in 2021, the central bank raised this instrument to 9% twice, and lowered it to the current 4% three times from 2022 to 2023.

Lian Ping, chairman of the China Chief Economist Forum and director of the International Finance Research Institute, said that this increase is a macroprudential adjustment made by the central bank on unilateral exchange rate fluctuations and foreign exchange liquidity against the backdrop of strong RMB and abundant foreign exchange supply. The purpose is to avoid expectations of rapid unilateral appreciation and enhance the two-way elasticity of the market.

2. Pan Gongsheng: Maintaining the smooth operation of financial markets such as stocks, bonds, and foreign exchange

Importance: ★★★★

According to Xinhua News Agency, the 25th session of the 14th National People's Congress Standing Committee held its second plenary session at the Great Hall of the People in Beijing on the morning of the 3rd. Pan Gongsheng, Governor of the People's Bank of China, was commissioned by the State Council to make a report on financial work.

The report proposes next work considerations: continue to implement a moderately loose monetary policy; further strengthen and improve financial supervision; enhance the adaptability of financial services to the real economy and accelerate the construction of a multi-level modern financial market system; steadily deepen financial reform and high-quality opening-up to the outside world; implement monetary policy tools to support the capital market, consolidate and improve the capital market stabilization mechanism, maintain the smooth operation of financial markets such as stocks, bonds, and foreign exchange, and maintain the bottom line where systemic financial risks do not occur.

3. The central bank launched a 100 billion yuan swap facilitation operation, winning the bid rate of 10 bps

Importance: ★★★★

On November 3, the People's Bank of China launched the Securities, Fund, and Insurance Company Exchange Facilitative (SFISF) operation. The operating amount was 100 billion yuan. Using the rate bidding method, 31 securities and fund companies participated in the bidding, and the winning bid rate was 10 bps. On the same day, the central bank issued Notice No. 1 [2026] on the results of the exchange facilitation operation of securities, funds and insurance companies.

According to Pengpai News, CITIC Construction Investment Securities said it has declared the third batch of convenient exchange operations and participated in the bidding; the League of Nations Minsheng Securities claimed to have won the bid again; and GF Securities said it has won three consecutive bids since participating in the first installment in October 2024.

4. Iran stated its position on negotiations, and international crude oil futures dived intraday

Importance: ★★★

On the evening of November 3, international crude oil futures dived intraday. At 20:27, Lent crude oil futures fell below 105 US dollars/barrel to 104.99 US dollars/barrel; at 21.33, the decline widened to 2% to 102.19 US dollars/barrel, and WTI crude oil futures reported 94.46 US dollars/barrel during the same period. As of 22:30, WTI crude oil futures were reported at $96.22 per barrel, and Brent crude oil futures were reported at $104.36 per barrel.

According to the news, according to CCTV news reports, an official with knowledge of the negotiations said that the Qatari mediators are expected to receive feedback from the US and Iran on a new proposal within the next 36 hours. According to reports quoted by Wall Street News, Iran's president said that Iran's supreme leader has granted “additional authorization” to allow dialogue on issues previously viewed as “non-negotiable.”

5. World Gold Council: In the third quarter, global central banks purchased 321 tons of net gold, and gold ETF holdings reached a record high

Importance: ★★★

On November 3, the World Gold Council released the “Global Gold Demand Trends” report for the third quarter of 2026. According to the report, global central banks made net purchases of 321 tons in the third quarter, the fastest since the end of 2024; the cumulative purchase rate so far this year is 675 tons, which is slightly higher than the same period last year.

The net inflow of global physical gold ETFs during the same period was 211 tons, reversing the capital outflow trend in the second quarter. Total holdings rose to 4256 tons, a record high; demand for OTC and other gold was 143 tons, up from 101 tons in the same period last year.

6. Voting begins in the US midterm elections

Importance: ★★★

According to Xinhua News Agency, the US began voting in the midterm elections on the 3rd. At 6 a.m. EST (19:00 Beijing time), polling sites in some eastern states, such as Maine, New York, and Virginia, were the first to open. In this election, the Republican Party and the Democratic Party will compete for all 435 seats in the House of Representatives and 35 of the 100 seats in the Senate. Voters will also elect local public officials such as governors from 36 states and state legislators from some states.

According to the China Merchants Securities Research Report, based on the latest polls from eight institutions, the probability that the Republican Party will lose both houses of the Senate and the House of Representatives at the same time is the highest; the probability of retaining the Senate but losing the House of Representatives is below average, and the probability of staying in both houses at the same time is the lowest.

Opportunity outlook

Zhitong Finance sorted out the most watched sectors and catalytic events of the day.

1. Electronic cloth: According to Zhuochuang News's November quotation, the mainstream 7628 thick cloth was 14.6 yuan/meter to 14.65 yuan/meter, up 1.5 yuan/meter from month to month; 2116 thin cloth was 20.2 yuan/meter, up 2.5 yuan/meter from month to month.

2. Storage: Co-Creation Data stated in the investor relations activity records that there is a shortage of DDR. Recently, the price has increased by 30% and has been accepted.

3. Long-term energy storage: Ningde Times delivered the first 5.64MWh EnerQB long-term energy storage system to Quinbrook for the 3GW/24GWh series project in Australia.

4. Nuclear power: Unit 2 of the CGN Zhejiang Sanao Nuclear Power Project completed its first nuclear fuel loading, carrying a total of 177 sets of nuclear fuel components.

5. Methanol: Geely released a new generation of methanol electric mixing technology. The first model Galaxy Xingyao 6 e-Fuel was launched. The alcohol cost for 100 kilometers was as low as 20 yuan.

Among them, recent signs of tight supply for storage have continued. According to the records of Co-Creation Data's investor relations activities, as HBM takes up a large amount of production capacity, the DDR price increase trend will not change for at least the next 3 years; Flash is relatively weak and easy to expand production, and consumer Flash prices have already dropped; and HDDs are in high demand for cold and warm data storage. According to the Guoyuan Securities Research Report, technology financial reports have triggered a revaluation of market expectations, and it is recommended to focus on the AI profit cashout situation and internal segmentation of the storage sector.

Selected announcements

Positive announcements

1. China Xidian: 12 subsidiaries became one of the winners of the State Grid's fifth substation equipment (including cable) procurement in 2026, winning a total bid of about 1,115 billion yuan

2. Pinggao Electric: The company, its subsidiaries and joint ventures won the bid for the fifth substation equipment procurement by the State Grid in 2026, totaling about 998 million yuan

3. Wuliangye: Repurchased 8.4097 million shares in October and paid about 600 million yuan

4. Joyson Electronics: Plans to repurchase 150 million yuan to 300 million yuan of shares, cancel all repurchased shares and reduce registered capital

5. Walter Dyne: The controlling shareholder plans to increase its holdings by no less than 3.52 million shares and no more than 7.0386 million shares within 6 months from November 4

Negative announcements

1. Guosheng Technology: The main subsidiary in the photovoltaic business temporarily suspended production from September 8. If production does not resume before December 7, there is a risk that the stock will be subject to other risk warnings

2. *ST Wingtech: Nexperia B.V. has sued the company and actual controller in the Amsterdam District Court in the Netherlands, claiming US$2 billion

3. Leon Micro: Controlling shareholders agreed to reduce their holdings by 7.7 million shares from August 3 to November 2, and the total shareholding ratio dropped from 22.58% to 21.58%

4. Qianli Technology: Vehicle sales volume in October was 6,282 units, down 25.81% year on year

5. Cultural Investment Holdings: Revenue for the first three quarters was 180 million yuan, down 29.51% year on year; net loss of 375.458 million yuan

What to see tomorrow

Tomorrow (November 4), follow: EU, US, and Ukrainian negotiators meet in Brussels, and the US midterm election results are being released one after another.