How have the funding signals for the market rally changed?

  • On Monday, the ChiNext Index rose more than 3.5% at one point, and more than 4600 stocks advanced across the market. Consumer, cultural media, financial and computing hardware stocks all rebounded, while a few sectors, including precious metals, pulled back.
  • Unlike previous sessions, when broad-market ETF volume often increased only near the close, turnover on the Shanghai and Shenzhen markets and broad-market ETF volume rose together at the open. Turnover in the China Southern CSI 1000 ETF exceeded the whole of last Friday’s total in the first hour, indicating that buying absorbed early selling pressure.
  • The indices fell back in the afternoon, however, and full-day turnover on the two markets was 1.78 trillion yuan, below the 1.96 trillion yuan recorded on 23 October. Following the rebound on 23 October, the indices opened lower the next day and trading volume contracted, providing a reference point for the durability of the current rally.

What funding conditions will determine the rally’s continuation?

  • The report says the tender for the securities, funds and insurance companies swap facility has raised expectations of incremental funds, and that the quota in the hundreds of billions of yuan will help stabilize the market in the short term. The actual effect also depends on how institutions use the instrument and whether funds already in the market embrace it.
  • The report is watching whether turnover on the two markets and broad-market ETF volume can continue to rise together to maintain a balance between buying and selling. If the stocks nicknamed “Yi Zhong Tian” stop falling, that would also help the ChiNext Index consolidate buying support near 2400 points.
  • Sentiment indicators have improved: the number of stocks hitting their first daily upper limit rose from 38 to 114, while the number hitting their daily lower limit fell from 82 to 8. The report uses whether the number of first-time limit-up stocks can avoid a sharp decline as a gauge of short-term sentiment stabilization.

Why are livestream Token sales attracting attention?

  • On the evening of 2 November, Li Jiaqi’s livestream sold Qianwen Office Tokens. In the first half hour, it sold 100 thousand personal monthly membership cards, totaling approximately 2 trillion Tokens.
  • National Data Administration figures show that China’s total Token calls for 2025 were approximately 21100 trillion. Average daily calls exceeded 140 trillion in March 2026, more than a thousand times the level at the beginning of 2024.
  • Gu Jia of China Merchants Securities believes that expanding Token consumption will make it more complex for users to select and manage models. Operating platforms can connect enterprise applications and vertical content by providing unified access to models, metering consumption and scheduling calls, so the value of model consumption access points is expected to rise.

What is driving growth in AI short dramas?

  • CCTV Finance reported that the total number of active users of AI animated dramas overseas has exceeded 150 million; Chinese companies hold nine of the top ten positions among paid short-drama apps overseas.
  • Guosen Securities believes short dramas are well suited to industrialized AI production because they are inexpensive to watch, audiences are relatively tolerant of their quality, and viewers value timeliness and sensory stimulation. AI is already used for characters, scripts, visuals, voiceovers and editing, and the cost of a single drama can fall to between 30 thousand and 80 thousand yuan.
  • As for market performance, the report says Monday’s rise in short-drama stocks lacked a clear new catalyst and was related to the rebound in internet finance stocks and the indices. The outlook also depends on whether the index rebound can continue.