Shanghai Composite opens lower then rebounds, down 0.3%; pharma and consumer sectors strengthen, optical module "Yi Zhongtian" plunges at one point; Hang Seng Index and Hang Seng Tech Index both rise 1%

Tech stocks in A-shares and Hong Kong, including computing power hardware and memory chips, came under pressure, with optical module leader "Yi Zhong Tian" plunging: market confidence had earlier been hit hard by Google's earnings, US stocks suffered a sell-off overnight, and with Amazon and Intel both plunging after hours, Asia-Pacific stocks fell again on Friday, South Korea's KOSPI triggered a circuit breaker, and SK Hynix and Samsung Electronics each fell more than 5%. Meanwhile, the latest earnings reports from Eoptolink and Zhongji Innolight showed that Eoptolink's third-quarter net profit fell 19% quarter-on-quarter and inventory surged 141%; Zhongji Innolight's Q3 revenue rose 24.62% quarter-on-quarter and net profit rose 8.46% quarter-on-quarter, while its controlling shareholder reduced holdings by 3.2 billion yuan.

On October 30, major A-share indices opened collectively lower, the three major indices fell significantly in early trading, fluctuated and recovered during the session, and narrowed their losses markedly by midday, with the Shanghai Composite down 0.3% and ChiNext down 1%. Tech stocks such as computing power hardware fell into adjustment again, and concept stocks such as optical modules, optical communications and optical chips fell collectively, with "Yi Zhong Tian" all declining. Eoptolink fell more than 11% in early trading, and Zhongji Innolight fell nearly 6% at one point. Consumer stocks such as baijiu, beverages and white goods rebounded.

Hong Kong stocks rebounded collectively, with the Hang Seng Index and Hang Seng Tech Index both rising in early trading, each up 1%. Most heavyweight internet stocks rebounded, with Xiaomi, Meituan, Alibaba, Trip.com and NetEase all rising. Computing power hardware such as optical modules fell, Zhongji Innolight's H-shares opened lower and moved higher, approaching positive territory by midday after falling more than 7% in early trading to a record low since listing. Memory chip and AI large-model stocks also came under pressure. In the bond market, treasury bond futures fell across the board in early trading. In commodities, most domestic commodity futures rose.

Core market moves:

A-shares: As of press time, the Shanghai Composite was down 0.30%, the Shenzhen Component down 0.58%, and ChiNext down 1.18%.

Hong Kong stocks: As of press time, the Hang Seng Index was up 1.64% and the Hang Seng Tech Index up 1.43%.

Bond market: Treasury bond futures fell across the board. As of press time, the 30-year main contract was down 0.52%, the 10-year main contract down 0.14%, the 5-year main contract down 0.12%, and the 2-year main contract down 0.06%.

Commodities: Most domestic commodity futures rose. As of press time, agricultural by-products led gains, with apples up 4.53%; most chemicals rose, with asphalt up 3.35%; non-metallic building materials all rose, with glass up 1.64%; energy products all rose, with LPG up 0.99%; oils and oilseeds mostly rose, with rapeseed oil up 0.91%; base metals mostly rose, with alumina up 0.50%; shipping futures all rose, with the containerized freight index (Europe route) up 0.13%; precious metals led declines, with silver down 4.91%; new energy materials mostly fell, with polysilicon down 2.62%; ferrous metals mostly fell, with coke down 1.04%.

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On the board, decliners slightly outnumbered advancers in the two markets, with half-day turnover of 1.02 trillion yuan. Half-day turnover in the Shanghai and Shenzhen markets was 1.01 trillion yuan, 23 billion yuan more than the previous trading day. By sector, CRO, baijiu, shipping, oil and gas, and port sectors bucked the trend and boosted sentiment, while the banking sector remained active. Optical communications, software, construction machinery, media and defense sectors declined.

Specifically, consumer stocks such as baijiu bucked the trend, with Qingdao Food up for a fifth straight limit, and Huangtai Liquor, Yingjia Gongjiu, Quanyangquan and others hitting limit-up. The broad consumer sector continued to rise, led by baijiu and food processing, with Yingjia Gongjiu, Gujing Gongjiu, Quanyangquan, Haoxiangni, Heizhima and others hitting limit-up. Gujing Gongjiu, Huangtai Liquor and Yingjia Gongjiu hit limit-up, Quanyangquan, Haoxiangni and Heizhima followed with limit-up, and Luzhou Laojiao, Jinshiyuan and Jinsheng Liquor led gains.

The catalyst came from two threads. The first is expectations of an industry recovery — Yili said at its 2026 third-quarter results briefing that industry contract milk prices had already risen slightly year-on-year in the third quarter, supply and demand were gradually coming into balance, milk prices were expected to enter a mild recovery phase next year, and the trend of domestic substitution in deep dairy processing continued.

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CSC said the baijiu sector is bottoming and liquor companies are comprehensively transforming toward consumers, with leading liquor companies' dividend yields exceeding 4%; Huatai Securities noted that industry supply is actively contracting, inventory is being destocked, wholesale prices are stabilizing at low levels, and the adjustment may already be at the bottom.

Pharmaceutical and medical stocks fluctuated and recovered, with Yangpu Medical up 20CM limit-up, Bide Pharmaceutical up 20CM limit-up, Aoyang Health limit-up, Lingrui Pharmaceutical limit-up, Guilin Sanjin limit-up, and Jiuan Medical and Dashenlin also limit-up; Ruizhi Pharmaceutical, Wanbang Pharmaceutical, Haoyuan Pharmaceutical and Nearshore Protein rose more than 10% to 11%. The CRO direction rose sharply, with WuXi AppTec, Pharmaron and Tigermed following.

The catalyst came from the mapping of a 2.5% surge in the US healthcare sector overnight — the CRO sector is highly correlated with the prosperity of overseas innovative drugs, and funds returned to pharmaceuticals as tech stocks adjusted. In addition, the launch meeting for three national science and technology major projects in "Brain Science and Brain-Like Research" undertaken by the Beijing Institute for Brain Science and Brain-Like Research was held recently, providing policy catalysts for the brain-computer interface direction.

Shenghong Technology, Eoptolink, TFC Optical Communication and Deko Li fell more than 10%, while Taijin New Energy, T&S Communications, Cambridge Technology and Zhongji Innolight fell more than 6%; liquid-cooling server concept stocks weakened collectively, with Dayuan Pump Industry limit-down and Feilong shares limit-down, while Qiangrui Technology, Tongfei shares, Binglun Environment and Envicool all fell.

The decline was driven by a combination of internal and external factors. The external factor was the spillover from the overnight U.S. stock selloff—Google's earnings dealt a heavy blow to market confidence first, followed by sharp after-hours drops in both Amazon and Intel, while Asia-Pacific markets fell again on Friday, South Korea's KOSPI triggered a circuit breaker, and SK Hynix and Samsung Electronics each fell more than 5%.

The internal factor was that the "Yi Zhong Tian" trio's earnings fell short of expectations—Eoptolink's third-quarter net profit fell 19% quarter-on-quarter and inventory surged 141%; Zhongji Innolight's Q3 revenue rose 24.62% quarter-on-quarter and net profit rose 8.46% quarter-on-quarter, but its controlling shareholder reduced holdings by 3.2 billion yuan, weighing on market sentiment.