What drove the midday rebound?

  • On the morning of 2 November, indices strengthened amid fluctuations and rose sharply shortly before midday, with trading volume significantly higher than last Friday. Xiaolin Cailianshe believes capital flows, sentiment and policy reinforced one another, making the rebound relatively strong in quality.
  • Short-term sentiment also warmed: Stocks with two or more consecutive daily limit-up sessions all traded at a premium; negative feedback was concentrated in two stocks whose unusual moves failed, and their volume also rose markedly shortly before midday.

Which sectors led gains, and what constraints remain on the indices?

  • Apart from defensive dividend stocks such as banks, the market rose broadly. Financials were strong from the open, with Guojin Securities hitting its daily upper limit early, followed by Pacific Securities and some internet finance stocks.
  • AI applications stood out, with a wave of limit-up moves in short dramas and games. This also drew funds back to AI hardware and semiconductors, supporting the indices’ rise after 11 a.m.
  • The report also noted that tech hardware still lacked momentum of its own that day, while technology carries a large weighting in the indices. It therefore expects the indices to consolidate for some time, with a change potentially visible before mid-November.

How far has Zhishang Technology’s optical connectivity business progressed?

  • In a CPO architecture, MPC precisely couples optical signals to silicon photonics chip ports. Its ability to be repeatedly connected and disconnected helps address the maintenance problem of having to replace an entire package when a traditional fixed connection is damaged.
  • The report says the MPC product jointly developed by Zhishang Technology and SENKO has passed customer certification and is in the new product introduction stage. Production is expected to begin in the second half of 2026, followed by a ramp-up to mass production in 2027.
  • Under a memorandum of cooperation on the 2027 annual demand forecast signed by the company and customer PH on 30 September, purchases of MPO fiber-optic jumpers for that year are expected to reach 500 million US dollars, equivalent to approximately 3.353 billion yuan; this is the demand forecast in the memorandum.