A-share midday: rebound on heavier trading; new energy strengthens; tech stocks diverge

Why did the market rebound so quickly after opening lower?

Influenced by the overnight pullback in U.S. tech stocks and the weakening renminbi exchange rate, the indices all opened lower. Buying then pushed them up quickly.
Morning turnover approached 1.5 trillion yuan. Cailian Press noted that trading volume often contracts on the day after a sharp rally, whereas that morning’s turnover indicated strong trading activity.
Market sentiment also improved: no stocks on the two exchanges hit the daily lower limit in morning trading, small- and micro-cap stocks rallied across the board, and stocks that had previously served as sentiment barometers, such as Huangtai Liquor and Oriental Ocean, staged reversals.

After broad strength the previous day, tech stocks diverged. Domestic supply-chain names such as chips and semiconductors remained relatively strong, with edge-side names standing out, while overseas-chain computing-power hardware retreated across the board. Cailian Press maintained its medium-term rebound view on tech stocks and expects a rebound to be likely by mid-November.
New energy was slightly stronger in morning trading than Cailian Press had expected, while robotics was relatively weak. Cailian Press considers the strength in new energy to reflect a narrative around the victory of related elections overseas, and says it should be viewed as thematic trading; a second wave of gains may emerge in robotics.
Media and short-form dramas saw a return of inflows, while consumer stocks were relatively defensive. Interest in the sheep theme has begun to wane, and Cailian Press expects it may subsequently fade from hot money’s radar.

In its company tracking, Cailian Press says the transition of solid-state batteries from the laboratory to mass-production engineering will make the equipment segment the first to benefit. Its estimates put the solid-state battery equipment market at 2.8 billion yuan in 2026, rising to 27.7 billion yuan in 2030.
All-solid-state batteries are better suited to dry-electrode processes, which require the addition of steps such as dry mixing, fibrillation and roll-press film formation. Shangshui Intelligent’s dual-drive coating machine, twin-screw extruder and integrated multi-stage roll-press coating machine are designed for these processes and can provide equipment ranging from laboratory to mass-production scale.