Author: Wang Yahang

Market Analysis

Pay attention to financial policies. On the macro level, the full text of the "Report of the State Council on Financial Work" has been released. Regarding the next steps, the report proposes to continue implementing a moderately loose monetary policy, using a variety of tools comprehensively to maintain ample liquidity. Explore the application of artificial intelligence in the fields of financial management and services, and prevent risks associated with the use of models. Expand the international use of the RMB and enhance its functions as an international currency for pricing, payment, investment and financing, and reserves. Implement monetary policy tools that support the capital market, support the Central Huijin Company in playing a role similar to a stabilizing fund, broaden the sources, channels, and methods of medium- and long-term funds entering the market, and consolidate and improve the mechanisms for stabilizing the capital market. Maintain the stable operation of financial markets such as stocks, bonds, and foreign exchange.

Overseas, the number of people claiming unemployment benefits in the United States dropped to 189,000 at the beginning of last week, below the market forecast of 196,000, marking the lowest level since mid-July. In October, American Challenger companies laid off 43,994 employees, a 71% decrease from the same period last year, and the recruitment plans approached 445,000, a 57% increase year-on-year.

The index closed in the green.In the spot market, the three major A-share indices closed in the green: the Shanghai Composite Index rose by 0.1% to 3,689.91 points; the ChiNext Index increased by 0.87%. Across industries, most sector indices were higher, with power equipment, media, real estate, and light manufacturing leading the gains, while only coal, petroleum and petrochemicals, communications, and banking sectors saw declines. The total market turnover amounted to approximately 2.1 trillion yuan.

Overseas, the three major U.S. stock indices all closed lower: the Dow Jones Industrial Average fell 3.44% to 51,523.06 points; the S&P 500 Index fell 4.36% to 7,353.73 points; and the Nasdaq Composite Index fell 5.52% to 24,315 points.

Shortening positions in futures.In terms of the futures market and basis, the basis of stock index futures has rebounded. Regarding trading volume and open interest, both the trading volume and open interest of stock index futures have decreased simultaneously.

Strategy

Huatai Futures stated that due to market concerns that a Democratic sweep of Congress would strengthen the regulation of AI, U.S. tech stocks experienced significant adjustments overnight, with all three major indices falling collectively. Currently, the tech sectors both domestically and internationally are still in resonance, and it is expected that these disruptions will be transmitted to the domestic market as well.

Risks

If domestic policies fail to meet expectations, overseas monetary policies exceed expectations, or geopolitical risks escalate, there is a risk of a decline in stock indices.

Investment consulting business qualification: Securities Regulatory Commission permit [2011] No. 1289

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