A-share three major indices rebound, ChiNext Index rises 1.87%, AI comic drama concept strengthens across the board

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Xinhua Finance, Beijing, Nov. 2 (Xinhua) -- The three major A-share indices rebounded collectively on Nov. 2, with the indices paring gains after rising sharply; the ChiNext Index rose more than 3.5% at one point during the session. Turnover in the Shanghai and Shenzhen markets totaled 1.78 trillion yuan, up 109.2 billion yuan from the previous trading day. On the board, the AI comic-drama concept strengthened: Jiangsu Jiecheng Video Technology, Guomai Culture, Haikan Co., Ltd., Huashi Technology, and Mango Excellent Media hit the 20CM daily limit; Alpha Group, Dasheng Culture, Longban Media, and Zhewen Pictures Group hit the daily limit; Wentou Holdings staged a "floor-to-ceiling board" reversal; gaming stocks strengthened collectively, with Dasheng Culture, Yoozoo Games, Electronic Soul Network, and Giant Network hitting the daily limit; the baijiu concept strengthened, with Huangtai Liquor rising for a second consecutive session and Swellfun and Jindongzi Liquor hitting the daily limit; large financial stocks rallied, with Sinolink Securities, Pacific Securities, Yinzhijie, and Hundsun Technologies hitting the daily limit. On the downside, the precious metals concept fluctuated and adjusted, with Chifeng Gold, Shanjin International, and others declining.

As of the close, the Shanghai Composite Index reported 3,638.03 points, up 1.08%, with turnover of 847.5 billion yuan; the Shenzhen Component Index reported 11,010.68 points, up 1.63%, with turnover of 936.2 billion yuan; the ChiNext Index reported 2,458.70 points, up 1.87%, with turnover of 468.7 billion yuan; the STAR Composite Index reported 1,458.50 points, up 2.62%, with turnover of 250.3 billion yuan.

Hot sectors

Institutional views

Zhongtai Securities: Full-year certain earnings will bring steady returns for bank stocks in 2026, with short-term performance related to market style; the economic development model will continue (strong policy resolve), and strong corporate business plus persistently low risk appetite among residents will drive net interest margin to bottom out and rebound, while sustained revenue growth will be a highlight, with strong earnings certainty. Two main investment lines for bank stocks: first, city and rural commercial banks with regional advantages and strong certainty, in regions including Jiangsu, Shanghai, Chengdu-Chongqing, Shandong, and Fujian; second, the logic of high dividends and stability, with large banks particularly recommended.

CSC: In 26Q3, the four major vendors' cash capital expenditure grew 108.0% year on year, and operating cash flow grew 10.4%; calculated as operating cash flow minus cash capital expenditure, combined free cash flow fell to -$25.04 billion. Microsoft's operating cash flow still covers current investment, while the other three had negative free cash flow. Combined revenue from AWS, Google Cloud, and Azure grew 55.7% year on year, with increased Copilot usage, model calls, and Agent deployment, while SAP and ServiceNow advanced AI commercialization. AI demand supports infrastructure expansion, and front-loaded capital expenditure puts pressure on cash balances; going forward, focus on capacity utilization, contract fulfillment, and revenue growth and cash recovery brought by application payments.

Huachuang Securities: At the current point, it is recommended to focus on low-valuation value varieties, mainly concentrated in banks, non-bank financials, real estate, baijiu, and automobiles. At present, Federal Reserve rate hikes are still in the early stage of valuation compression, and the low-valuation advantage of value varieties can provide a margin of safety, with relatively limited drawdowns when the market declines. At the same time, in an environment of tightening liquidity, stronger earnings certainty and dividend levels make the low-valuation stable-growth strategy both defensive and relatively elastic in terms of returns during a rate-hike cycle. Based on the assumption of an oversold rebound, for the short term of 1-2 months, growth sectors recommended for attention include semiconductors, communications equipment, and power and new energy, as their earlier valuation compression was more thorough and thus their rebound elasticity is stronger.

On the news front

Second review draft of the Financial Law enriches provisions on financial consumer and investor protection

On Nov. 2, the "Financial Law of the People's Republic of China (Draft)" was submitted for a second review at the 25th session of the Standing Committee of the 14th National People's Congress. The second review draft enriches the content on financial consumer and investor protection and adds targeted provisions on activities such as internet marketing. Regarding financial consumer and investor protection, the second review draft adds provisions that the provision of financial products and services shall set fair and reasonable transaction conditions, and shall not use standard-form clauses to make unfair and unreasonable provisions such as excluding or restricting the rights of financial consumers and investors, reducing or exempting their own responsibilities, or increasing the responsibilities of financial consumers and investors; marketing entities for financial products and services shall strengthen customer suitability management, understand customers' circumstances in accordance with regulations, truthfully explain the content of financial products and services, fully disclose risks, and provide financial products and services matching customers' circumstances.

All six major banks restart issuance of large-denomination certificates of deposit

CCTV Finance reporters recently learned that, with Postal Savings Bank of China officially listing large-denomination certificate of deposit products on its official App, the issuance of large-denomination certificates of deposit by all six major banks has fully restarted. On Oct. 29, Postal Savings Bank listed three large-denomination certificates of deposit, with terms of 3 months and 6 months, all starting at 200,000 yuan: two 6-month products with an annual interest rate of 1.05%, transferable, and one 3-month product with an annual interest rate of 0.85%, non-transferable; the rates are all significantly higher than the bank's fixed deposit rates for the same terms. Previously, on July 1, Bank of China launched its first tranche of personal large-denomination certificates of deposit for 2026, covering terms from 1 month to 5 years, and Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Bank of Communications subsequently followed with listings.

(Source: Xinhua Finance) Middle of the article Embedded advertisement