A-shares remain in a bottoming process after a high-volume rebound; Cailian Press sees technology as key to a medium-term recovery

Has the market exited its downtrend after the high-volume rebound?

On 2 November, the index reversed last Friday’s losses on higher volume, but the ChiNext Index retreated in the afternoon. Cailian Press says the index remains in a downtrend, faces difficulty moving above its 5-day moving average in the near term, and needs to wait for selling pressure to ease.
Market sentiment improved at the same time, and stocks with consecutive daily limit-up closes commanded high premiums, but the recovery in loss-making effects was limited. The agency therefore judged that sentiment had yet to enter an upward phase.

AI applications were the day’s strongest performers, with a wave of short-drama stocks hitting their daily upper limits; gaming, e-commerce and advertising followed higher. In the afternoon, capital chose to follow AI applications higher rather than large financial stocks. Cailian Press therefore judged that the market would most likely continue to bottom out in the near term.
Technology hardware faced selling pressure in the afternoon, and neither Dongshan Precision nor Yangtze Optical Fibre and Cable managed to hold at its daily upper limit. However, the morning gains in large financial and consumer stocks gave the index a weaker boost than the technology rebound near the midday break. Cailian Press therefore believes technology will remain central if the index stages a medium-term rebound.
Physical AI and robotics attracted some renewed buying, but their performance was not outstanding. Cailian Press believes that a second wave of gains in the sector requires large-capacity stocks to stabilize it.

Cailian Press believes that as AI tools lower per-episode production costs and barriers to production, content supply could rise rapidly. Platforms’ traffic distribution, advertiser resources and authority to set revenue-sharing rules would become relatively scarce, and industry gains could therefore concentrate on platforms.
Haikan Holdings operates a distribution network spanning multiple platforms and its own app, and its Haikan Theater has the ability to conduct platform self-review and filing. Mango Excellent Media is building its platform presence through content revenue sharing, joint operations and e-commerce collaboration. Cailian Press considers its fundamentals stronger, but says its near-term share-price upside potential may be weaker than Haikan Holdings’.

In the first half of 2026, packaged drinking water industry sales volume and revenue fell 4.9% and 7.3% year on year, respectively, while Quanyangquan’s mineral water sales volume rose 33% to 1.0357 million tonnes. Third-quarter mineral water segment revenue rose 33.1% year on year. The price per tonne fell just 0.7% year on year, a narrower decline, while a higher share of ready-to-drink products also created room for an improved product mix.
Runjian’s wholly owned subsidiary Wuxiang Yungu has signed a 200 million US dollar cross-border Token services contract. According to Cailian Press’s analysis, the Token factory charges after use based on consumption and shares in inference-service revenue, with revenue linked to usage volume. Through scheduling optimization and algorithm reuse, the same batch of GPUs could produce more saleable Tokens, improving revenue and costs per unit.