A-share pre-market broadcast | NASDAQ rose 0.83%, brokerage won the bid for 34 billion e-cloth price increases

Pre-market highlights

1. The three major US stock indices closed with mixed ups and downs. The NASDAQ rose 0.83%, and the Philadelphia Semiconductor Index rose 2.64%

Type: Market

Mood effect: neutral

On November 3, the three major indices of the US stock market closed with mixed ups and downs. The NASDAQ rose 0.83%, and the Philadelphia Semiconductor Index rose 2.64%. Chip stocks led the way, with SanDisk up more than 4%, Broadcom and AMD up more than 3%, and Western Digital, ARM, Nvidia, and Seagate Technology up more than 2%. Apple fell 1.97%, and its CEO Tenus said at the earnings conference that the rise in memory prices is dragging down the month-on-month decline in gross margin in the new quarter, and it is expected that memory costs will be higher in the future.

2. The central bank's 100 billion yuan swap has been implemented to facilitate operation. 31 institutions have bid, and the brokerage firm has revealed that it has won more than 34 billion yuan

Type: macro

Emotional impact: positive

On November 3, the central bank launched the third securities, fund, and insurance company interchange facilitation (SFISF) operation, amounting to 100 billion yuan. 31 securities and fund companies participated in the bid, and the bid rate was 10 bps. Cathay Pacific Haitong and CITIC Securities each won the bid of 10 billion yuan, SDIC Securities won the bid of 6 billion yuan, Dongwu Securities won the bid of 5 billion yuan. GF Securities, Orient Securities, China Merchants Securities, Guoxin Securities, Ping An Securities, Great Wall Securities, the League of Nations Minsheng, and Huafu Securities also announced that they won the bid. Only a few companies that have already been disclosed won bids totaling more than 34 billion yuan, all indicating that the amount will be used to increase their holdings of stocks and stock ETFs.

3. The price increase for electronic cloth came to fruition in November, and the price of mainstream thick cloth increased 1.5 yuan/meter month-on-month. The industry chain said production capacity was full

Type: industry

Emotional impact: positive

According to the November price of e-yarn and e-cloth released by Zhuochuang News, mainstream 7628 thick cloth quoted 14.6 yuan/meter to 14.65 yuan/meter, up 1.5 yuan/meter from month to month; 2116 thin cloth quoted 20.2 yuan/meter, up 2.5 yuan/meter from month to month. In terms of electronic yarn, the price of E225 yarn was 71,500 yuan/ton, up 10,500 yuan/ton from month to 12,500 yuan/ton; D450 yarn was priced at 147,500 yuan/ton, up 277,500 yuan/ton from month to month. A number of leading listed electronic cloth companies responded that e-cloth and e-yarn went on the market. In November, they were still on an upward channel. The current production capacity is at full capacity, and the industry's new production capacity will basically be gradually implemented by the second half of 2027.

4. Zhongji Xuchuang: The vast majority of customers have not submitted requests or orders, and 2027 orders have covered the whole year

Type: Company

Emotional impact: positive

On November 3, Zhongji Xuchuang released an investor relations activity record sheet to clarify rumors that overseas customers have lowered their demand or cut orders: the vast majority of customers have not submitted requests or orders, individual customers have made structural adjustments to their products, and demand for 1.6T from some customers has increased compared to before. Even considering structural adjustments from individual customers, the overall demand of the industry in 2027 is still within the original forecast. The vast majority of the company's orders in 2027 have covered the whole year, and at least one key customer has given clear demand guidelines in 2028. Currently, data center customers are picking up goods at a normal pace, and the overall supply of optical modules is still tight.

Investment calendar

From November 4 to November 5, the Huawei China Government and Enterprise Quanguang Industry Summit 2026 will be held in Beijing

Institutional views

1. Cathay Pacific Haitong: The equity market is expected to mainly recover from shocks in November. At the bottom of the market, it was confirmed that the leading sector still needs to stop falling and return capital.

2. Huayuan Research: The core conflict of AI is not that demand weakens, but that there is a time gap between capital expenditure expansion and the realization of commercial returns.

3. Everbright Securities: Swaps facilitate capacity growth and fee reduction, repurchases and loans are converted to long-term arrangements, and the cost of market entry financing is further reduced.

Positive and negative outlook

1. Qualcomm announced the fourth quarter and full year results of the 2026 fiscal year on November 4

Type: Hot Market Discussion

Cathay Pacific Haitong: The systematic rise in the technology sector still needs to be catalyzed by four types of catalysts, including capital development support from overseas cloud vendors to continue upgrading, free cash flow, and capital return expectations to stabilize.

2. The number of ADP employees in the US for October was announced on November 4

Type: Agency Hot Reviews

Huayuan Research: A fall in US bond yields does not necessarily mean an improvement in risk appetite; we still need to pay attention to the Fed's policy expectations and the return on capital expenditure of tech giants.

3. The 24th China Semiconductor Packaging Testing Technology and Market Annual Conference was held in Nanjing from November 4 to 6

Type: Agency Hot Reviews

Zhongtai Securities: The PTFE solution is likely to be first introduced in Rubin Ultra NVL576. Large-scale implementation will drive the release of demand for spherical silicon powder, hydrocarbon resin, and PTFE resin.

Announcement Express

Positive announcements

1. Changgao Electric: Four wholly-owned subsidiaries won the bid for a total of 230 million yuan for the State Grid procurement project, accounting for 13.84% of 2025 revenue 

 2. Youzu Network: Wholly-owned subsidiary signs 4.225 billion yuan GPU product procurement contract

3. Changxin Technology: Chairman proposes to increase the repurchase amount from 1 billion yuan to 2 billion yuan to 2.5 billion yuan to 5 billion yuan

Negative announcements

1. Shanying International: Wu Mingwu, the actual controller and chairman, was filed by the Securities Regulatory Commission on suspicion of insider trading and short-term trading

2. Samsung New Materials: Case filed by the Securities Regulatory Commission for suspected illegal disclosure of information

3. Tongguang Cable: Tongguang Cable, a wholly-owned subsidiary, was suspended from winning the bid for 2 years in all categories of the State Grid Tianjin due to providing false information

Overseas markets

On November 3, the three major indices of the US stock market closed with mixed results. The Dow fell 0.38%, the NASDAQ rose 0.83%, and the S&P 500 rose 0.36%. The increase in memory chip prices boosted the semiconductor sector. The Philadelphia Semiconductor Index rose 2.64%, SanDisk rose more than 4%, Broadcom and AMD rose more than 3%, Microsoft rose 2.70%, and Nvidia rose 2.26%. The same factor suppressed downstream hardware. Apple said that the increase in memory prices dragged down gross margin guidelines, falling 1.97%, and Tesla falling 1.32%. Livermore's leading Chinese securities index closed down 0.08%, Huirong Technology rose more than 7%, and JD rose more than 2%.