Market Overview - The A-share market showed strong fluctuations today, with the Shanghai Composite Index rising nearly 1% to reclaim the 4000-point mark [1] - The total trading volume in the Shanghai and Shenzhen markets reached 2.06 trillion, an increase of 182.9 billion compared to the previous trading day [1][6] - Nearly 2900 stocks in the market experienced gains, indicating broad market participation [1] Sector Performance - The chemical sector saw a collective surge, with stocks like Yuntianhua and Chengxing shares hitting the daily limit [1] - The gas turbine concept continued to rise, with stocks such as Triangle Defense and Weichai Power also reaching the daily limit [1] - The electric grid equipment sector maintained its strong performance, with Moen Electric achieving a three-day limit-up [1] - The electrolytic aluminum concept was active, with China Aluminum, Nanshan Aluminum, and Minfa Aluminum all hitting the daily limit [1] - AI hardware concept stocks experienced fluctuations, with Huylv Ecology and Dongshan Precision both reaching the daily limit, while Cambrian Technology rose over 9% [1] - Conversely, the tourism sector faced a collective decline, particularly in the ice and snow industry, with Dalian Shengya hitting the daily limit down [1] - The Hainan sector weakened, with Haikou Group also touching the daily limit down [2] Index Performance - At the close, the Shanghai Composite Index rose by 0.97%, the Shenzhen Component Index increased by 1.73%, and the ChiNext Index gained 1.84% [3][4]

Core Viewpoint - The Shanghai Composite Index rose nearly 1% to reclaim the 4000-point mark, with significant trading volume and a broad market rally, indicating strong investor sentiment and sector performance [1] Market Performance - The total trading volume in the Shanghai and Shenzhen markets reached 2.06 trillion, an increase of 182.9 billion compared to the previous trading day [1] - Nearly 2900 stocks in the market experienced gains, showcasing widespread bullish activity [1] Sector Highlights - The chemical sector saw a collective surge, with stocks like Yuntianhua and Chengxing shares hitting the daily limit [1] - The gas turbine concept continued to rise, with companies such as Triangle Defense and Quanchai Power also reaching the daily limit [1] - The electric grid equipment sector maintained its strong performance, with Moen Electric achieving a three-day limit-up streak [1] - The electrolytic aluminum concept was active, with China Aluminum, Nanshan Aluminum, and Minfa Aluminum all hitting the daily limit [1] - AI hardware concept stocks experienced fluctuations, with Huylv Ecology and Dongshan Precision both reaching the daily limit, while Cambrian Technology rose over 9% [1] Declining Sectors - The tourism sector faced a collective decline, led by the ice and snow industry concept stocks, with Dalian Shengya hitting the daily limit down [1] - The Hainan sector weakened, with Hainan Airlines reaching the daily limit down [1] Index Performance - At the close, the Shanghai Composite Index rose by 0.97%, the Shenzhen Component Index increased by 1.73%, and the ChiNext Index gained 1.84% [1]

Market Overview - The market experienced a strong upward trend, with the Shanghai Composite Index rising nearly 1% to reclaim the 4000-point level, closing at 4007.76, up 0.97% [1][2] - The Shenzhen Component Index increased by 1.73%, closing at 13452.42, while the ChiNext Index rose by 1.84%, closing at 3224.62 [1][2] - The total trading volume in the Shanghai and Shenzhen markets reached 2.06 trillion, an increase of 182.9 billion compared to the previous trading day [1] Sector Performance - The chemical sector saw a collective surge, with stocks like Yuntianhua and Chengxing shares hitting the daily limit [1] - The gas turbine concept continued to rise, with companies such as Triangle Defense and Weichai Power also reaching the daily limit [1] - The electric grid equipment sector maintained its strong performance, with Moen Electric achieving a three-day limit increase [1] - The electrolytic aluminum concept was active, with China Aluminum and Nanshan Aluminum stocks hitting the daily limit [1] - AI hardware concept stocks experienced fluctuations, with companies like Huile Ecology and Dongshan Precision reaching the daily limit, while Cambrian Technology rose over 9% [1] Declining Sectors - The tourism sector faced a collective decline, particularly in the ice and snow industry, with Dalian Shengya hitting the daily limit down [1] - The Hainan sector weakened, with Haikou Group also reaching the daily limit down [1][3] Leading and Lagging Sectors - Phosphate chemicals, semiconductors, and CPO sectors showed the highest gains, while Hainan, film and television, tourism, and hotel sectors recorded the largest declines [3]

Group 1 - A-shares main indices rose significantly, with the ChiNext Index increasing over 2% and returning above 3220 points, driven by the technology growth sector [1] - The STAR Market also showed strong performance, with the STAR Composite Index rising by 2.45% [1] - The Double Innovation 50 ETF (588380) focusing on "hard technology" surged by 3.45% during the session, reflecting strong market interest [1] Group 2 - The ChiNext Index consists of 100 stocks with high market capitalization and liquidity, heavily weighted towards strategic emerging industries, particularly AI hardware and new energy, which together account for approximately 60% of the index [2] - The top ten weighted stocks in the index include leading hard technology companies such as CATL (19.66%), Zhongji Xuchuang (8.03%), and Xinyi Technology (5.96%), indicating a significant growth style [2] - Investors are encouraged to consider the ChiNext ETF (159971) and its linked funds (Class A 161022/Class C 013277) to capitalize on high growth opportunities during the A-share recovery process [2]

Core Viewpoint - Morgan Stanley predicts that 2026 will be a pivotal year for explosive growth in AI hardware, primarily driven by strong demand for AI server hardware [4][5]. AI Hardware Growth Drivers - The growth of AI hardware is shifting from the H100/H200 era to a new cycle driven by NVIDIA's GB200/300 and the upcoming Vera Rubin platform [5][6]. - The demand for AI server racks is expected to surge from approximately 28,000 units in 2025 to at least 60,000 units in 2026, representing over 100% growth [8]. Power and Cooling Solutions - The report highlights that the challenges of power consumption and cooling due to hardware upgrades present significant opportunities for power and cooling suppliers [10]. - The transition to 800V high-voltage direct current (HVDC) power solutions is anticipated, which will greatly enhance the value of power solutions [12][14]. - By 2027, the value of power solutions for Rubin Ultra cabinets is expected to exceed ten times that of current GB200 server cabinets [14]. Liquid Cooling Components - Liquid cooling has become a standard requirement, with the total value of cooling components for a GB300 server rack estimated at approximately $49,860, expected to increase by 17% for the Vera Rubin platform [10][15]. PCB and Interconnect Upgrades - The report emphasizes the significant impact of AI platform upgrades on printed circuit boards (PCBs) and interconnect components, with increasing requirements for layer counts and material grades [16][20]. - The number of layers in ABF substrates is projected to increase from 12 layers for H100 to 18 layers for Vera Rubin [17]. - The demand for high-layer HDI boards and high-grade CCL materials is expected to create structural growth opportunities for PCB and upstream material suppliers [20][22].

Report Overview - Report Title: Credit Business Weekly Report - Date: November 3, 2025 - Research Institute: Zhongtai Securities Research Institute - Analysts: Xu Chi, Zhang Wenyu 1. Report Industry Investment Rating - Not provided in the report 2. Report Core Views - The positive outcome of the China-US economic and trade consultations and the continuous advancement of domestic reform policies have released dual positive signals, boosting market confidence. Future policies and market trends are expected to revolve around the core logic of "great power competition," benefiting the continuous development of domestic and global asset trends [8]. - Investment suggestions focus on three main lines: geopolitical competition (gold, military, rare earths, non-ferrous metals, etc.), technological competition (AI - related sectors), and supply - chain reconstruction (power equipment, polysilicon, etc.) [8]. 3. Summary by Relevant Catalogs Market Observation: Market Changes after the Positive Outcome of China - US Economic and Trade Consultations Market Performance - A - share major indices showed a "high - then - low" pattern last week. The CSI 300, STAR 50, and ChiNext Index rose in the first half - week and fell in the second half. The CSI 300 and STAR 50 ended the week down 0.43% and 3.19% respectively, while the ChiNext Index rose 0.5%. The CSI 2000 rose 0.95%. The large - cap growth index showed the most obvious "high - then - low" pattern, while the small - cap growth style was strongly supported. The technology sector declined, while the manufacturing and cyclical sectors were stronger [6]. - In terms of sectors, the technology sector declined due to unmet expectations in some aspects, while the manufacturing sector was supported by the "15th Five - Year Plan" and the cyclical sector benefited from geopolitical factors. Non - ferrous metals, steel, and agriculture, forestry, animal husbandry, and fishery performed well [6]. Capital Flow - ETF funds showed net inflows, with funds for the CSI 300, CSI 500, STAR 50, and ChiNext Index turning from outflows to inflows. The CSI 2000 had a continuous and accelerating inflow, and only the dividend index had a small net outflow. Northbound funds increased significantly, leveraged funds grew steadily, and the margin balance reached a new high on October 29. The pressure of major shareholder reduction remained low [7]. Market Review Market Performance - Most major market indices rose last week, with the CSI 1000 having the largest increase of 1.18%. Among the large - category industry indices, the material index and industrial index performed better, rising 2.98% and 1.36% respectively, while the financial index and information technology index performed weakly, falling 1.43% and 0.93% respectively [9][17]. - Among the 30 Shenwan primary industries, 19 industries rose. The power equipment, non - ferrous metals, and steel industries had relatively large increases of 4.29%, 2.56%, and 2.55% respectively, while the communication, beauty care, and banking industries had relatively large declines of 3.59%, 2.21%, and 2.16% respectively [19]. Trading Volume - The average daily trading volume of the Wind All - A Index last week was 23253.35 billion yuan (previous value: 17973.14 billion yuan), at a relatively high historical level (94.10% in the three - year historical quantile) [22]. Valuation Tracking - As of October 31, 2025, the valuation (PE_TTM) of the Wind All - A Index was 22.01, a decrease of 0.58 from the previous week, at the 89.20% quantile in the past five - year history. Among the 30 Shenwan primary industries, 18 industries' valuations (PE_TTM) were repaired [27].

Core Insights - The report indicates that the short-term adjustment in the technology sector is a preparatory phase for the next "spring rally" in the market [1] - The overall market remains in a slow bull pattern despite short-term corrections, with a focus on style rotation and opportunities for cyclical stocks [2][10] - The report highlights the importance of macro policy expectations and the performance of small-cap stocks during periods of volatility in large-cap technology stocks [10] Market Overview - In October, the Shanghai Composite Index rose by 1.85%, reaching a ten-year high, while the ChiNext and STAR 50 indices experienced fluctuations [10] - The market is entering an earnings window period in November, with mixed signals regarding domestic demand recovery [10] - The report notes that while corporate revenue and profits showed significant recovery in September, the October PMI indicated a marginal decline [2][10] Industry and Sector Analysis - The technology sector, particularly AI hardware, has faced adjustments due to underwhelming earnings reports from companies in the optical communication and PCB sectors [20][34] - Despite the adjustments, domestic computing and storage chip manufacturers have shown strong performance, with significant revenue growth reported [36] - The AI application sector is experiencing a reversal in performance, with increasing penetration rates and initial signs of commercialization in various vertical applications [37][38] Fund Allocation Insights - The report discusses the allocation of active equity funds to the pan-technology manufacturing sector, noting a high configuration ratio of 63.2% and an overweight ratio of 22.1% as of Q3 2025 [22][24] - Historical data suggests that once active equity funds show a significant bias towards a leading industry, this configuration tends to remain elevated for several quarters [29] - The report emphasizes the need to monitor the sustainability of these allocations in light of ongoing economic conditions and sector performance [28][29]

Core Viewpoint - The A-share market experienced fluctuations this week, with small-cap stocks performing relatively well while the STAR 50 index saw a decline of 3.19% for the week. The AI hardware sector faced significant adjustments, indicating a potential shift in market leadership towards AI applications as November begins [1][2]. Market Performance - The AI hardware sector's sharp decline on Friday was unexpected for many investors, marking a notable day of losses for the leading sector of the current bull market [1][2]. - Historical trends suggest that the last few days of the third-quarter earnings report period often lead to market adjustments and significant volatility in leading sectors [2]. Sector Analysis - Some core stocks in the AI hardware sector did not meet investor expectations, particularly in the case of CPO [2]. - Despite the recent downturn, the overall impact on the market is expected to be short-term, with mid-term performance dependent on other sectors [2]. November Outlook - The Shanghai Composite Index has broken out of its previous trading range, indicating a potential upward trend in early November [2]. - Historical data from 2019 to 2024 shows that five out of six years experienced a rebound at the beginning of November, with only one instance of a minor decline of 1.55% [4]. Support Levels - The market is expected to find support around 3930 points, with two key support levels identified: the high point of 3936 from October 9 and the gap from October 24 [4][5]. AI Hardware Sector Sentiment - The current sentiment in the AI hardware sector is negative, with reports indicating that institutional investors' technology positions have surpassed 40% and warnings about potential overvaluation in the TMT sector [6][7]. - The lack of strong performance from core stocks, such as Nvidia's $5 trillion market cap not boosting A-share AI hardware stocks, has contributed to the sector's decline [6]. AI Applications Sector - In contrast to the AI hardware sector, the AI applications sector (including media, entertainment, and software services) has begun to show strength, suggesting that market funds are still focused on AI as a primary theme [9]. - Key stocks like Kingsoft Office and 360 have performed well, serving as indicators for the potential of a sustained rally in the AI applications sector [9][10]. Year-End Market Characteristics - Historically, entering November often leads to a period of performance vacuum in the market, with active funds seeking to create speculative stocks [11]. - Potential themes for speculative stocks include zodiac-related concepts, Hainan free trade zone topics, and emerging hotspots [12]. Pharmaceutical and Liquor Sectors - The pharmaceutical sector, particularly innovative drugs, may be more appealing to market funds compared to liquor, especially following recent U.S.-China trade discussions [15]. - The innovative drug sector index has recently broken through a month-long consolidation, which could boost confidence in the sector [16].

Core Viewpoint - The A-share market has entered a historic moment with the Shanghai Composite Index surpassing the 4000-point mark, indicating a shift in market dynamics where new productive forces are replacing traditional drivers as the main engine of growth [1][3]. Economic Factors - Since the beginning of 2023, there has been a recovery in consumption and a continuous rise in the manufacturing PMI, particularly in high-end equipment and electronic information sectors, which have significantly outperformed traditional industries, providing earnings support for the market [3]. - The liquidity easing signals from recent interest rate cuts and targeted support policies for technological innovation and high-end manufacturing have bolstered investor confidence [3]. - The influx of northbound capital has reached a three-year high, and the fundraising for public funds focused on technology themes has increased, contributing to a robust trading environment with daily transaction volumes exceeding 1 trillion [3]. Market Structure - Historical analysis shows that previous rallies at the 4000-point level relied heavily on traditional sectors like finance and real estate, while the current rally is primarily driven by the technology sector, which has contributed over half of the index's gains [4]. - The number of technology companies in the Shanghai Composite has increased fourfold since 2015, with their weight rising from less than 5% to 17%, indicating a fundamental shift from resource-driven growth to innovation-driven growth [4]. Future Outlook - The current market environment is supported by expectations of improved US-China relations, with technology leading the market rally, particularly in AI and semiconductor sectors [5]. - Short-term prospects remain positive due to ongoing policy benefits and liquidity support, while mid-term expectations suggest a gradual upward movement in market fundamentals [5]. - Investment opportunities are identified in high-growth sectors such as artificial intelligence and renewable energy, alongside defensive plays in undervalued sectors like cyclical and consumer stocks [5]. Investment Opportunities - High-growth opportunities include popular ETFs focused on artificial intelligence and technology, such as the Communication ETF (515880), the ChiNext AI ETF (159388), and the Sci-Tech Chip ETF (589100) [6]. - Defensive opportunities can be found in unique market ETFs like the Coal ETF (515220), Steel ETF (515210), and the still undervalued Aquaculture ETF (159865) [7].

Market Overview - The A-share market maintained a strong oscillation pattern in the morning but saw major indices decline after noon, with the Shanghai Composite Index breaking below the 4000-point mark [2] - Despite the decline, trading volume in the Shanghai and Shenzhen markets increased, indicating strong support at lower levels [2] - The Hang Seng Index in Hong Kong showed signs of recovery after the A-share market closed, suggesting sustained investment confidence in Chinese assets [2][5] Short-term Trading Catalysts - Three clear short-term trading catalysts were identified: 1. Trade negotiations have shown signs of resolution, leading to profit-taking among investors [2] 2. The Federal Reserve's stance on interest rate cuts has become clearer, with indications that a new round of cuts is not imminent, prompting profit-taking [2] 3. Third-quarter earnings reports are becoming clearer, particularly for key companies, leading to increased profit-taking [2] Sector Performance - AI hardware sector stocks, particularly in the CPO field, experienced weak performance, indicating that momentum investors began to sell off [3] - The innovative drug sector also faced downward pressure as the narrative around sustained Fed rate cuts weakened, leading to increased selling pressure [3] - Despite the pressure on certain sectors, insurance and lithium battery stocks remained strong, helping to maintain index strength [3] New Narratives and Future Outlook - The Shanghai Composite Index's drop below 4000 points highlights its significance as a psychological barrier, suggesting ongoing tug-of-war between bulls and bears [4] - The Hang Seng Index's recovery and significant inflow of southbound capital (over 12 billion HKD) indicate strong attractiveness of Chinese assets [5] - Emerging narratives, such as the U.S. "G2" relationship and China's new energy system initiatives, are expected to provide new catalysts for growth in related sectors [5] - Despite some underperformance in the AI sector, improvements in resource, chemical, and food and beverage sectors suggest a solid foundation for the A-share market [5]