Core Viewpoint - The A-share market has reached a significant milestone, with the Shanghai Composite Index closing above 4000 points for the third time in its history, indicating a robust annual market trend and a shift in market dynamics compared to previous peaks [1][10]. Market Overview - As of October 29, the A-share market comprises 5444 listed companies with a total market capitalization of 119.20 trillion yuan, a substantial increase from 2449 companies and 52.98 trillion yuan in April 2015, and 1283 companies and 17.38 trillion yuan in May 2007 [1]. - The rolling price-to-earnings (P/E) ratio for the entire A-share market is 22.66 times, and the price-to-book (P/B) ratio is 1.87 times, showing a decrease in valuation compared to 23.63 times and 2.81 times in April 2015, and 47.32 times and 4.95 times in May 2007 [1]. Fund Flow Analysis - The financing balance in the A-share market reached a historical high of 24,769.91 billion yuan as of October 28, 2025, with a financing balance to circulating market value ratio of 2.53%, lower than the 3.87% ratio in April 2015 [3]. - The financing buy-in amount accounted for 11.93% of the A-share transaction volume, indicating a more cautious approach to financing compared to 15.12% in 2015 [3]. Sector Performance - The leading sectors in the current market rally from September 1, 2024, to October 29, 2025, include telecommunications (up 135.48%), electronics (up 112.62%), and the comprehensive sector (up 107.21%), with several other sectors also showing significant gains [5][8]. - In contrast, the previous market rallies saw non-bank financials, computers, and construction decoration sectors leading with gains of 190.77%, 174.36%, and 172.71% respectively from May 1, 2014, to April 10, 2015 [5][8]. Structural Changes - The current market structure has shifted from being driven by capital to focusing on the transformation and upgrading of the real economy and optimization of industrial structure, which is seen as a foundation for healthy market operation [9]. - The technology sector has gained a larger market capitalization share, with AI, semiconductors, and advanced manufacturing becoming the core themes, replacing traditional industries [10].

- The A-share sector rotation model is constructed using six factors: capital, valuation, sentiment, momentum, overbought/oversold, and profitability. The scoring system is based on these factors to evaluate the comprehensive scores of industries[4][19] - The capital factor uses the net inflow rate of industry funds as the main data source, while the valuation factor is based on the valuation percentile of the industry over the past year. Sentiment is derived from the proportion of rising constituent stocks, momentum is calculated using the MACD indicator, overbought/oversold is measured by the RSI indicator, and profitability is based on the consensus forecast EPS percentile of the industry over the past year[19] - The scoring results of the sector rotation model show that industries such as media, social services, and food & beverage have high comprehensive scores, while industries like real estate, building materials, and environmental protection have low scores[4][20][21] - The consensus stock selection model identifies high-growth industries at the secondary level of Shenwan classification over the past 30 days. It calculates momentum factors, valuation factors, and upward frequency using monthly stock data. Additionally, it incorporates high-frequency minute-level fund flow data to compute the similarity between fund flow changes and stock price trends. Stocks with the highest similarity in the top three secondary industries are selected[22] - The selected high-growth secondary industries for this period are industrial metals, home appliance components II, and energy metals. Stocks chosen include Chang Aluminum Co., Jintian Co., and Libba Co. among others[23] - The A-share sector rotation model scoring results indicate that the media industry achieved a total score of 8, social services scored 8, and food & beverage scored 7. Conversely, industries such as real estate and building materials scored -5, and environmental protection scored -4[21] - The consensus stock selection model outputs stocks such as Chang Aluminum Co. and Jintian Co. from the industrial metals sector, Tianyin Electromechanical and Samsung New Materials from the home appliance components II sector, and Shengxin Lithium Energy and Rongjie Co. from the energy metals sector[23]

Market Overview - The Shanghai Composite Index rose by 0.70% on October 29, with 24 out of 28 sectors experiencing gains. The top-performing sectors were electric equipment and non-ferrous metals, with increases of 4.79% and 4.28% respectively. Conversely, the banking and food & beverage sectors saw declines of 1.98% and 0.56% respectively [1]. Capital Flow Analysis - The net inflow of capital in the two markets was 5.406 billion yuan, with 12 sectors experiencing net inflows. The electric equipment sector led with a net inflow of 16.132 billion yuan, followed by the non-ferrous metals sector with a net inflow of 5.997 billion yuan [1]. - In contrast, 19 sectors experienced net outflows, with the electronics sector seeing the largest outflow of 6.540 billion yuan, followed by the communications sector with an outflow of 4.736 billion yuan. Other sectors with significant outflows included defense, banking, and food & beverage [1]. Comprehensive Sector Performance - The comprehensive sector declined by 0.56%, with a net outflow of 206 million yuan. Among the 16 stocks in this sector, 4 stocks rose while 12 stocks fell. The stocks with the highest net inflows included Dongyangguang with 25.0425 million yuan, followed by Yatai Group and Zongyi Shares with inflows of 8.3428 million yuan and 6.4692 million yuan respectively [2]. - The stocks with the highest net outflows included Zhangzhou Development with 110.426 million yuan, Nanjing Public Utilities with 42.833 million yuan, and Nanjing Xinbai with 28.2137 million yuan [2].

Market Overview - The Shanghai Composite Index increased by 0.36% with a trading volume of 1,078.52 million shares and a transaction value of 18,285.62 billion yuan, representing a 2.13% increase compared to the previous trading day [1] Industry Performance - The top-performing sectors included: - **Electric Power Equipment**: Increased by 4.00% with a transaction value of 2,463.73 billion yuan, up 33.06% from the previous day, led by Arctech with a rise of 19.97% [1] - **Non-ferrous Metals**: Rose by 3.07% with a transaction value of 1,125.00 billion yuan, down 4.62% from the previous day, with Chang Aluminum leading at 10.08% [1] - **Non-bank Financials**: Gained 1.20% with a transaction value of 808.22 billion yuan, up 54.88% from the previous day, led by State Grid Yingda at 9.95% [1] Declining Sectors - The sectors with the largest declines included: - **Banking**: Decreased by 1.56% with a transaction value of 297.44 billion yuan, up 7.80% from the previous day, with Chengdu Bank falling by 5.36% [2] - **Food and Beverage**: Fell by 0.78% with a transaction value of 206.60 billion yuan, up 7.50% from the previous day, led by Guyue Longshan at -4.04% [2] - **Light Industry Manufacturing**: Decreased by 0.53% with a transaction value of 153.13 billion yuan, down 7.44% from the previous day, with Longzhu Technology dropping by 13.16% [2]

Core Insights - As of October 28, the market's latest financing balance reached 24,769.91 billion yuan, an increase of 12.703 billion yuan compared to the previous trading day [1] - Among the 24 industries classified by Shenwan, the electronic industry saw the largest increase in financing balance, rising by 2.79 billion yuan [1] - The industries with notable increases in financing balance also include defense and military, electric equipment, and communication, with increases of 1.46 billion yuan, 1.07 billion yuan, and 0.81 billion yuan respectively [1] - Conversely, seven industries experienced a decrease in financing balance, with non-ferrous metals, non-bank financials, and food and beverage sectors seeing the largest declines of 0.505 billion yuan, 0.408 billion yuan, and 0.168 billion yuan respectively [2] Industry Financing Balance Changes - The electronic industry had a latest financing balance of 3,732.18 billion yuan, increasing by 2.79 billion yuan, representing a growth of 0.59% [1] - The defense and military industry reported a financing balance of 792.90 billion yuan, with an increase of 1.46 billion yuan, reflecting a growth of 1.88% [1] - The electric equipment sector's financing balance reached 2,050.71 billion yuan, increasing by 1.07 billion yuan, which is a growth of 0.52% [1] - The communication industry had a financing balance of 1,130.72 billion yuan, with an increase of 0.81 billion yuan, marking a growth of 0.72% [1] - The textile and apparel industry saw a decrease in financing balance to 81.89 billion yuan, down by 0.44 billion yuan, a decline of 0.53% [2] - The real estate sector's financing balance decreased to 348.83 billion yuan, down by 1.56 billion yuan, reflecting a decline of 0.44% [2] - The non-ferrous metals industry reported a financing balance of 1,194.91 billion yuan, decreasing by 5.05 billion yuan, which is a decline of 0.42% [2]

Market Overview - On October 28, the Shanghai Composite Index fell by 0.22%, the CSI 300 decreased by 0.51%, the STAR Market 50 dropped by 0.84%, the CSI 1000 declined by 0.22%, the ChiNext Index decreased by 0.15%, and the Hang Seng Index fell by 0.33% [3][4] - The best-performing sectors on October 28 were Comprehensive (+2.06%), Defense and Military Industry (+1.07%), Transportation (+0.24%), Textile and Apparel (+0.19%), and Computer (+0.13%). The worst-performing sectors were Non-ferrous Metals (-2.72%), Beauty and Personal Care (-1.51%), Steel (-1.35%), Construction Decoration (-0.88%), and Coal (-0.79%) [3][4] - The total trading volume of the A-share market on October 28 was 21,653 billion, with a net inflow of 2.258 billion HKD from southbound funds [3][4] Key Insights - From January to September 2025, the profit growth of industrial enterprises maintained a recovery trend, primarily influenced by a low base effect. The impact of "anti-involution" remains to be observed, with its sustainability and intensity dependent on substantial supply-side policy effects. Overall, "anti-involution" may support a moderate recovery in industrial profits, but its strength is yet to be determined [5] - Industrial profits are significantly affected by base effects, indicating that the current readings may not fully reflect underlying economic conditions [5] - High-tech manufacturing has emerged as a crucial driver for the high-quality development of industrial enterprises [5]

Core Points - The Shanghai Composite Index fell by 0.22% on October 28, with 10 industries rising, led by the comprehensive and defense industries, which increased by 2.06% and 1.07% respectively [1] - The comprehensive industry saw a net inflow of 72.61 million yuan, with 10 out of 16 stocks in this sector rising, including 2 hitting the daily limit [1] - The top three stocks with the highest net inflow in the comprehensive industry were Dongyangguang with 236 million yuan, Nanjing Public Utilities with 79.69 million yuan, and Teli A with 7.82 million yuan [1] Industry Summary - The comprehensive industry ranked first in terms of daily gains, with a rise of 2.06% and a total of 16 stocks [1] - The top gainers in the comprehensive industry included Dongyangguang, which rose by 2.77%, and Nanjing Public Utilities, which surged by 10.06% [1] - The sectors with the largest declines were non-ferrous metals and beauty care, with decreases of 2.72% and 1.51% respectively [1] Fund Flow Analysis - In the comprehensive industry, 7 stocks experienced net inflows, while 3 stocks saw net outflows [1] - The stocks with the largest net outflows included Zhangzhou Development, Yuegui Co., and Zhejiang Agricultural Co., with outflows of 111 million yuan, 92.64 million yuan, and 19.19 million yuan respectively [1] - The trading volume and turnover rates varied significantly among the stocks, with some stocks like Sanmu Group showing a high turnover rate of 14.74% despite a negative net fund flow [1]

Market Overview - The Shanghai Composite Index decreased by 0.19% as of 13:58, with a trading volume of 1,035.35 million shares and a transaction amount of 1,791.19 billion yuan, representing a 7.10% decrease compared to the previous trading day [1]. Industry Performance - The top-performing sectors included: - Comprehensive sector increased by 2.03% with a transaction amount of 56.26 billion yuan, led by Nanjing Public Utilities which rose by 10.06% [1]. - Defense and military industry rose by 1.34%, with a transaction amount of 715.45 billion yuan, led by Jianglong Shipbuilding which surged by 19.98% [1]. - Banking sector saw a modest increase of 0.47%, with a transaction amount of 275.92 billion yuan, led by Xiamen Bank which increased by 5.31% [1]. - The sectors with the largest declines included: - Non-ferrous metals sector fell by 2.47%, with a transaction amount of 1,179.53 billion yuan, led by Tongling Nonferrous Metals which dropped by 9.56% [2]. - Steel sector decreased by 1.64%, with a transaction amount of 119.04 billion yuan, led by Wujin Stainless Steel which fell by 5.21% [2]. - Beauty and personal care sector declined by 1.44%, with a transaction amount of 50.31 billion yuan, led by Zhongshun Jierou which decreased by 9.65% [2]. Summary of Key Stocks - Leading stocks in the comprehensive sector included Nanjing Public Utilities with a significant rise of 10.06% [1]. - Jianglong Shipbuilding in the defense sector showed a remarkable increase of 19.98% [1]. - Xiamen Bank in the banking sector increased by 5.31% [1]. - Conversely, notable declines were seen in: - Tongling Nonferrous Metals with a drop of 9.56% [2]. - Wujin Stainless Steel which fell by 5.21% [2]. - Zhongshun Jierou with a decrease of 9.65% [2].

Market Overview - The Shanghai Composite Index decreased by 0.01% as of 10:29 AM, with a trading volume of 573.04 million shares and a turnover of 98.09 billion yuan, representing a 22.22% decrease compared to the previous trading day [1] Industry Performance - The top-performing sectors included: - Comprehensive: +1.18% with a turnover of 32.57 billion yuan, led by Nanjing Public Utilities (+10.06%) [1] - National Defense and Military Industry: +0.94% with a turnover of 345.74 billion yuan, led by Aerospace Development (+9.95%) [1] - Computer: +0.83% with a turnover of 751.00 billion yuan, led by Haixia Innovation (+19.97%) [1] - The sectors with the largest declines included: - Building Decoration: -0.78% with a turnover of 178.24 billion yuan, led by Huajian Group (-7.74%) [2] - Non-ferrous Metals: -0.77% with a turnover of 646.48 billion yuan, led by Tongling Nonferrous Metals (-7.68%) [2] - Steel: -0.72% with a turnover of 68.55 billion yuan, led by Wujin Stainless Steel (-2.69%) [2] Summary of Trading Data - A total of 2,520 stocks rose, with 49 hitting the daily limit, while 2,689 stocks fell, including 6 hitting the lower limit [1] - The sectors with the highest trading volumes included: - Electronics: 2,084.44 billion yuan, down 0.02% [1] - Power Equipment: 962.16 billion yuan, down 0.06% [1] - Banking: 160.14 billion yuan, down 0.06% [1]

Market Overview - The three major indices in the A-share market rose collectively in the morning session, with the Shanghai Composite Index at 4005.44 points, an increase of 0.21% [1] - The Shenzhen Component Index reached 13559.57 points, up by 0.52% [1] - The ChiNext Index reported 3277.97 points, reflecting a rise of 1.35% [1] Sector Performance - The battery sector led the gains with an increase of 1.70%, achieving a total trading volume of 1624.38 million hands and a net inflow of 32.56 billion [2] - Non-metal materials followed closely with a rise of 1.67%, with a trading volume of 68.94 million hands and a net inflow of 1.79 billion [2] - The components sector saw an increase of 1.52%, with a trading volume of 1326.83 million hands and a net inflow of 26.07 billion [2] Declining Sectors - The coal mining and processing sector experienced a decline of 1.50%, with a trading volume of 1214.40 million hands and a net outflow of 11.40 billion [2] - The wind power equipment sector fell by 1.14%, with a trading volume of 588.71 million hands and a net outflow of 15.96 billion [2] - The precious metals sector also saw a decrease, although specific figures were not provided [1]