A-share Midday Review | Shanghai Composite Index falls 0.13%, electric motor sector leads gains, banking and retail defy the trend

On October 27, the three major A-share indices opened collectively higher, then fluctuated and pulled back, turning negative at various points during the session, with the market showing a divergent pattern of "indices opening high and moving low, thematic differentiation and rotation, and defensive heavyweight sectors outperforming." As of the midday close, the Shanghai Composite Index fell 0.13% to 3,692.58 points, the Shenzhen Component Index fell 0.33% to 11,496.44 points, and the ChiNext Index fell 0.45% to 2,626.31 points. More than 3,700 individual stocks across the market declined. Half-day turnover across the Shanghai and Shenzhen markets was RMB870 billion, a shrinkage of RMB136.1 billion from the previous trading day. On the capital flow front, Cailian Press market monitoring data showed that in the morning session, main funds recorded net inflows into sectors including communications, general equipment, and culture and media, while recording net outflows from computers, electrical equipment and new energy, and electronics, among which the computer sector saw net outflows exceeding RMB2.4 billion. Market Overview On the board, on the gainers' side, the electric motor, reducer, retail, banking, and port shipping sectors led the gains; on the decliners' side, the military equipment, biological products, CRO concept, innovative drugs, and software development sectors led the losses. Overall, after opening higher, the indices stepped lower, with military equipment and pharmaceutical/biotech posting the largest adjustments, as capital rebalanced toward low-valuation, high-dividend heavyweights and domestic-demand consumption; multiple stocks in the Siasun Robot&Automation industry chain hit consecutive limit-up, heavyweight and domestic-demand consumption sectors absorbed capital, and the board showed pronounced structural characteristics among individual stocks, with overall money-making effect limited. Hot Sectors 1. Siasun Robot&Automation industry chain stocks hit consecutive limit-up Stocks in the Siasun Robot&Automation industry chain remained active, with the electric motor sector opening lower and moving higher, gaining 3.71% in the half-day session to become the top-gaining industry sector of the day, while the reducer sector also rose 1.15%. Zhejiang Founder Motor, Shenzhen Kaizhong Precision Technology, and Zhongshan Broad-ocean Motor hit limit-up; DuoLun Technology Corporation, Jiangsu Safety Wire Rope, and Xiangyang Automobile Bearing recorded 4 consecutive limit-ups; Changzhou Nrb Corporation recorded 2 consecutive limit-ups; Ananda Drive Techniques (Shanghai) Co. rose more than 8%; Jiangsu Tongda Power Technology rose more than 6%; and Jiangnan Yifan Motor rose more than 5%. However, the Siasun Robot&Automation concept index still fell 0.40% in the half-day session. Comment: On the news front, on October 22, at the 2026 World Physical AI Conference and Partner Ecosystem Conference, Unitree Technology founder Wang Xingxing said that with the release of GPT-6, physical AI has shown signs of being breached and is very likely to achieve a breakthrough in the next 1 to 2 years or 2 to 3 years; he also judged that embodied intelligence could reach its "ChatGPT moment" as soon as next year. On industry data, CCTV Finance, citing Ministry of Industry and Information Technology data, reported that in the first half of 2026 China's humanoid Siasun Robot&Automation output exceeded 40,000 units and is expected to exceed 100,000 units for the full year; Ministry of Commerce data showed that in the first three quarters, sales of embodied-intelligence Siasun Robot&Automation on key platforms grew 22.6% year on year. It should be noted that DuoLun Technology Corporation issued a risk warning announcement on the evening of October 26, stating that the company is not involved in the R&D or production of humanoid Siasun Robot&Automation core bodies, and that its Siasun Robot&Automation business mainly consists of traffic management Siasun Robot&Automation scenario applications and custom production of coffee Siasun Robot&Automation, with revenue and profit accounting for a very small proportion. 2. Retail sector active The retail sector was active, rising 1.38% in the half-day session. Shanghai Join Buy hit limit-up, recording 5 consecutive limit-ups; Maoye Commercial, Guangzhou Grandbuy, and Shenzhen Seg hit limit-up; Baida Group Co.,Ltd rose more than 7%; Yinchuan Xinhua Commercial rose more than 5%; and Gansu Guofang Industry & Trade rose nearly 5%. Comment: On the news front, an official of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce introduced China's consumer market conditions for the first three quarters of 2026 on October 23, noting that total retail sales of consumer goods grew 1.1% year on year in the first three quarters, including 1.1% growth in September, 0.7 percentage points faster than August, while retail sales of consumer goods excluding automobiles grew 3.9%. Separately, according to a prior announcement by Shanghai Join Buy, the company's operations are normal, its main business has not changed, and no undisclosed material information that would significantly affect the company's stock trading price has been found. 3. Banking sector strengthens against the trend The banking sector opened lower and fluctuated higher, rising 1.15% in the half-day session. Shanghai Rural Commercial Bank rose nearly 4%, with its share price hitting a new high for the year; China Construction Bank Corporation hit a new all-time high; and Bank Of Chongqing, Bank Of Beijing, and Bank Of Jiangsu rose more than 2%. Comment: On the news front, as of now, 21 A-share listed banks have disclosed their 2026 interim dividend plans, with total proposed dividend payouts exceeding RMB260 billion, covering the six major state-owned banks, 4 joint-stock banks, 6 city commercial banks, and 5 rural commercial banks; among them, the six major state-owned banks plan to pay out approximately RMB220.989 billion in total, accounting for more than 80% of the total disclosed amount. In addition, according to third-party capital monitoring data, main funds recorded a net inflow of RMB477 million into the banking sector in the first hour of trading. 4. Multiple smart driving concept stocks hit limit-up Multiple smart driving concept stocks hit limit-up, with the auto parts sector rising 0.94% in the half-day session. Zhejiang Shibao, Daming Electronics, and Guangzhou Tongda Auto Electric hit limit-up, while Guangzhou Hi-Target Navigation Tech rose more than 4%. Comment: On the news front, on October 26, Volkswagen Group (China) announced that it had officially obtained an L3 autonomous driving road testing license in Hefei and had launched real-road testing and data collection for L3 technology in Hefei; on the same day, XPeng Group announced that its Robotaxi "XPeng Youyou" had been approved for L4 autonomous driving demonstration operation qualifications and can conduct L4 Robotaxi demonstration operations across Guangzhou.