A-share Pre-market Briefing | Central Bank Establishes Liquidity Tool, Nasdaq Rises 1.11%, Photovoltaic Technology Included in Export Controls

Pre-market Briefing 1. Central Bank to Establish Liquidity Support Tool for Large-Scale Redemptions at Non-Bank Institutions Type: Macro | Sentiment Impact: Positive The 2026Financial Street Holdings Forum Annual Meeting opened on the afternoon of October 19, under the theme "Openness Cooperation Inclusiveness Building a New Ecosystem for Global Financial Development." People's Bank of China Governor Pan Gongsheng stated that the PBOC will join forces with the National Financial Regulatory Administration and the China Securities Regulatory Commission to launch a liquidity support tool for large-scale redemptions at non-bank institutions, aimed at establishing a stabilization mechanism for the bond market. The tool will be activated under specific scenarios where asset management institutions face herd liquidity risk and the bond market experiences a redemption-selloff negative feedback loop. Eligible institutions include bank wealth management subsidiaries, public fund managers, and their corresponding bank parent companies and securities parent companies. Operations with the central bank must meet macro-prudential requirements and provide high-grade collateral. Pan Gongsheng also stated that the PBOC will study the timing to switch the tenor of major open market operation instruments to overnight, and the open market overnight repo rate will accordingly become the main policy rate. CSRC Chairman Wu Qing said at the same event that the first batch of 18 active ETFs has been approved for registration. 2. U.S. Memory and Semiconductor Sectors Rebound; Nasdaq Rises 1.11% Type: Market | Sentiment Impact: Positive The three major U.S. stock indices closed mixed. The Dow Jones Industrial Average fell 0.07% to 51,966.03, the Nasdaq rose 1.11% to 26,430.89, and the S&P 500 rose 0.41% to 7,690.73. Memory and semiconductor sectors led gains. The Philadelphia Semiconductor Index ended an eight-day losing streak. SanDisk rose over 5%, Amazon gained nearly 5%, SK Hynix and Marvell Technology rose over 4%, Micron Technology gained nearly 3%, and Nvidia, Google, and Broadcom rose over 1%. Real estate, food and beverage, and cryptocurrency-related names declined. Beyond Meat fell over 4%, while Coinbase and Robinhood dropped over 2%. 3. Core Technologies in Three PV Segments to Be Included in Export Restrictions; MIIT Simultaneously Tightens Manufacturing Thresholds Type: Industry | Sentiment Impact: Positive On October 16, the Ministry of Commerce and the Ministry of Science and Technology solicited public comments on revisions to the "Catalogue of Technologies Prohibited or Restricted from Export." Core technologies and key equipment in three photovoltaic segments polysilicon, wafers, and cells will be included in controls. On the same day, the Ministry of Industry and Information Technology released a draft for public comment on the "Photovoltaic Manufacturing Industry Normative Conditions (2026 Edition)," shifting fully to N-type and tightening efficiency and energy consumption thresholds. CITIC SEC believes the two policies one external and one internal will delay overseas capacity expansion externally while accelerating the exit of outdated and excess capacity domestically. The photovoltaic industry is transitioning from homogeneous price competition to a new stage of high-quality development centered on technology and energy consumption. 4. Sharetronic Data Technology Subsidiary Signs Computing Power Cloud Service Agreement Worth Up to RMB 37.49 Billion Type: Company | Sentiment Impact: Positive Sharetronic Data Technology announced that its wholly-owned subsidiary Xiechuang Zhisuan Technology (Shenzhen) Co., Ltd. signed a "Computing Power Cloud Service Agreement" with a client company. The total estimated contract value is no more than RMB 37.49 billion, tax inclusive, calculated based on contract service term, computing power service volume, and monthly service prices, subject to actual settlement. The announcement stated that this agreement does not constitute any performance commitment or profit forecast, and fulfillment requires substantial upfront capital investment in procuring computing power services. Investment Calendar October 2021: The 9th Semiconductor Large Silicon Wafer Forum will be held in Xi'an Institutional Views 1. SDIC Securities: Shanghai Composite fell below the 3,700-point mark; ChiNext Index has approached historical maximum drawdown; high probability of a second AI tech wave in late October 2. Guosheng: Q3 GDP rose to 4.5% year-on-year, slightly above market expectations, but the equity market may continue to fluctuate in the short term 3. Sinolink: New home transactions in 47 cities fell 19.9% year-on-year; second-hand home sentiment stabilized at the bottom, with transaction volume up 11.6% year-on-year Positive/Negative Outlook 1. LPR quote to be released on October 20; RMB 65 billion of 7-day reverse repos maturing on the same day Type: Policy Focus CITIC SEC: The Financial Street Holdings Forum made clear that the policy rate will switch its anchor from the 7-day reverse repo rate to the overnight reverse repo rate in due course. The spread between 7-day and overnight rates is expected to widen, and broad-based rate cuts are expected to materialize. 2. Nvidia GTC AI Conference to be held in Berlin from October 20 to 22 Type: Technology Huayuan Securities: The sustainability of the AI industry chain has once again become the main theme of asset allocation. The core of the tech stock correction is the market re-examining the financing structure and commercial returns of AI investment. 3. Contemporary Amperex Technology, China Mobile Limited, Peric Special Gases, and others to disclose Q3 reports today Type: Market Discussion EB SECURITIES: Q3 actual growth was better than expected, the deflator has been positive for two consecutive quarters, September industrial production year-on-year growth continued to rise, and fixed asset investment month-on-month growth turned positive. Announcement Summary Positive Announcements 1. Shengyi Electronics: Plans to repurchase shares via centralized bidding, with repurchase amount no less than RMB 100 million and no more than RMB 200 million 2. Avary Holding: Plans to repurchase shares via centralized bidding, with repurchase amount no less than RMB 300 million and no more than RMB 500 million 3. ShenZhen YUTO Packaging Technology: Plans to repurchase shares via centralized bidding, with repurchase amount no less than RMB 200 million and no more than RMB 400 million Negative Announcements 1. Haitian Water Group: Terminates planning of major matters; company shares and Haitian convertible bonds to resume trading on October 20 2. Shanghai Supezet Engineering Technology Corp., Ltd.: Market capitalization was RMB 227 million as of October 19 close, below RMB 300 million for 13 consecutive trading days; faces risk of trading-based mandatory delisting and major violation mandatory delisting 3. RUIXIANG INTELLIGENT: Shareholder Fan Qi, holding over 5%, plans to reduce holdings by no more than 659,400 shares, accounting for 1% of total share capital Overseas Markets The three major U.S. stock indices closed mixed. The Dow fell 0.07%, the Nasdaq rose 1.11% to 26,430.89, and the S&P 500 rose 0.41%. A rebound in memory and semiconductor sectors drove the broader market. The Philadelphia Semiconductor Index ended an eight-day losing streak. SanDisk rose over 5%, Amazon gained nearly 5%, and SK Hynix and Marvell Technology rose over 4%. Real estate and cryptocurrency-related names declined, with Coinbase and Robinhood dropping over 2%. The Livermore China Concept Stock Leaders Index rose 0.56%, with Zhihu gaining over 1%.