Why did this rebound avoid opening higher only to fall back?

  • On Wednesday, the ChiNext Index rose more than 3%, while the Shenzhen Component Index and the STAR 50 Index each gained more than 2%. More than 4100 stocks rose across the market. After opening up 1.77%, the ChiNext Index briefly retreated but subsequently found buying support.
  • Turnover on the two mainland exchanges was 1.63 trillion yuan, up 167.5 billion yuan from the previous trading day. At the same time, AI hardware stocks stopped falling and recovered, and the ChiNext Index's intraday movement closely tracked that of relevant heavyweight stocks. The report says buying support on higher volume and stabilization in heavyweight stocks jointly supported the rebound.

What is the key condition for the rebound to continue?

  • The report compares the current market move with the period before the September FOMC meeting: A-shares also rose on higher volume on 16 September, but turnover subsequently contracted again, and that rebound ended. The persistence and scale of incremental funding will therefore affect the duration and extent of the current rebound.
  • The report says index levels are currently below their September levels, potentially leaving less resistance to a rebound; the area near the long lower shadow on 23 October may also attract renewed positioning. Separately, Fang Shi of Guotai Haitong Securities expects the market may mainly trade sideways over the next 1–2 quarters, citing factors including incremental funds remaining on the sidelines and no substantive reduction in uncertainty surrounding international relations.

Robotics leads gains: How strong is short-term follow-through?

  • The number of stocks hitting their first consecutive daily limit-up rose from 29 to 61, while the number hitting the daily limit-down fell from 21 to 5, showing a broader range of stocks attracting bullish activity. However, only 5 stocks reached a second consecutive limit-up, a progression rate of 17.24%, and high-priced stocks also failed to advance. The report uses at least 45–50 first-time limit-up stocks as a reference threshold for next-day sentiment.
  • The robotics sector strengthened under the lead of Unitree Robotics, and the number of first-time limit-up stocks increased. However, some high-priced stocks lacked buying support, and first-time limit-up stocks with a 20% daily limit also saw little follow-through. The leading subsector remained unclear, and many stocks fell back from their limit-up levels in the afternoon.
  • Unitree Robotics reported third-quarter 2026 revenue of 665 million yuan, up 69.93% year on year; net profit attributable to the parent was 113 million yuan, down 17.37% year on year. Revenue and attributable net profit for the first three quarters rose 55.71% and 270.54% year on year, respectively, contrasting with the single-quarter profit performance.

What earnings signals are emerging from the overseas AI industry?

  • SK Hynix's US-listed shares rose 13.30%. Its third-quarter profit increased more than sevenfold year on year to a record high, lifting other memory stocks. The report attributes the improvement in industry profitability to strong AI demand and constrained supply.
  • Vertiv rose 16.48%. Third-quarter net sales were 4.31 billion dollars, up 61% year on year, and organic orders grew more than 100% year on year. It also raised its full-year guidance. The report sees this as a catalyst for data-center liquid cooling; the benefits for relevant A-share companies also depend on how their respective businesses connect to demand.