A-share Pre-market Briefing | Nasdaq Falls 2.9%; PBOC Discusses Buybacks and Increased Holdings; CXMT Corporation (688825.SH) Net Profit RMB54.4 Billion

Pre-market Briefing 1. Intel's Q4 guidance misses expectations; shares fall 28.58%, the largest single-day drop in more than four decades Type: Market Sentiment impact: Negative US stocks, October 30: Intel's Q3 revenue was US$16.5 billion, up 21% year on year, but it expects Q4 non-GAAP earnings per share of only US$0.25, with gross margin falling from 44.1% in Q3 to 38%, and PC business revenue down 5% year on year. The stock fell 28.58% that day, the largest single-day drop in more than four decades. Chip stocks fell in tandem: SanDisk down more than 13%, Qualcomm down more than 11%, AMD down more than 10%, and ARM down more than 9%. The cost of default protection on Intel's five-year bonds briefly rose to 127.9 basis points per year, with both the single-day increase and the absolute level setting records. The Philadelphia Semiconductor Index fell 7.2% that day, its largest drop since June. 2. PBOC and CSRC convene major banks today to study optimizing the relending program for stock buybacks and increased holdings Type: Macro Sentiment impact: Positive According to Cailian Press, the PBOC will convene major banks today with the National Financial Regulatory Administration and the CSRC to study optimizing the policy on relending for stock buybacks and increased holdings; some securities firms and fund companies had previously received notices, and the meeting will study ways to promote the use of capital market tools. A Cailian Press reporter also learned from relevant channels that a super-large state-owned bank recently planned to add new stock buyback and increased-holding loan quotas for the two central SOEs China Reform Holdings and China Chengtong, with each new quota potentially reaching RMB100 billion. 3. PBOC to conduct overnight reverse repo tenders every working day starting today, with an operating rate of 1.25% Type: Macro Sentiment impact: Neutral The PBOC announced that starting November 2, it will conduct overnight reverse repo operation tenders every working day, using fixed-rate, quantity-based tenders, with the current operating rate at 1.25%; 7-day reverse repos will be adjusted to fixed-quantity, rate-based tenders with multiple-price allotment, mainly conducted around tax periods and month-end. Temporary repo/reverse repo operations originally priced by adding or subtracting points to the 7-day reverse repo rate, as well as repo tools for foreign central bank-type institutions, will all be changed to adding or subtracting points to the overnight reverse repo rate, with the spread unchanged. After the adjustment, routine open market operations will be mainly overnight, with the 7-day tenor reduced to a supplementary tool for tax periods and month-end. 4. Global DRAM supply falls short of demand; CXMT Corporation's Q3 net profit RMB54.435 billion, turning profitable year on year Type: Industry Sentiment impact: Positive CXMT Corporation (688825.SH) announced Q3 revenue of RMB118.714 billion, up 613.18% year on year, and net profit attributable to shareholders of RMB54.435 billion, turning profitable year on year; for the first three quarters, revenue was RMB269.024 billion and net profit attributable to shareholders was RMB132.04 billion. The company said the change in performance was mainly due to global DRAM products being in short supply, with sales volume and selling prices rising sharply, combined with lower unit costs and a substantial increase in product gross margin. At its Q3 earnings call, the company also disclosed that its sixth-generation process technology platform based on the 4F architecture has completed engineering sample validation. Investment Calendar November 2November 5: 2026 "Light of the Internet" Expo (Jiaxing) Institutional Views 1. Guotai Haitong: The Fed's "hawkish pause" in October; a 25bp rate hike remains highly likely in December, and inflation will be difficult to bring down smoothly in the short term. 2. SDIC Securities: Last week, the moving averages of the nine major broad-based indices were still in a fully bearish alignment; selling pressure may not have truly cleared, and oversold repair is accumulating. 3. CITIC SEC: Proposes four allocation approaches: steady returns, expectation realization, overseas rate declines, and sector heat plus chip clearing. Positive/Negative Outlook 1. US midterm elections to be held November 3 Type: Market hot topic CITIC SEC: Bullish on a possible rebound in US tech stocks after the midterm elections, with semiconductor hardware recommended as the primary direction. 2. China's October financial data to be released soon Type: Institutional hot comment Huafu Securities: Expects October new aggregate social financing of RMB1.09 trillion, an increase of RMB269.5 billion year on year, with social financing growth at 7.16%, and new RMB loans of -RMB110 billion. 3. APEC Informal Leaders' Meeting in Shenzhen to be held November 1819 Type: Policy focus Huafu Securities: On trade and economic matters, implementation of the pause on tariffs and related restrictive measures, tariff cuts on non-sensitive goods, and progress on procurement from Shenzhen Agricultural Power Group and Boeing aircraft are worth watching. Announcement Express Positive announcements 1. Hengtong Optic-Electric: Chairman proposes a buyback, with total repurchase funds of RMB100 millionRMB200 million 2. Inner Mongolia Xingye Silver&Tin Mining: Chairman and three other directors and senior executives plan to each increase holdings by 40,000 shares, totaling 160,000 shares 3. FULONGMA GROUP: Pre-won bids for two sanitation service projects in October, with total contract value of RMB224 million Negative announcements 1. Allgens Medical Technology: Received a CSRC case filing notice, suspected of false records in financial data including periodic reports 2. Hezong Sience&Technology: Received a CSRC case filing notice, suspected of information disclosure violations 3. Jiangsu Lopal Tech. Group: Terminates 80,000-ton iron phosphate precursor project, originally planned investment of about RMB500 million Overseas Markets On October 30, the three major US stock indices all closed lower, with the Dow down 1.09%, the S&P 500 down 1.82%, and the Nasdaq down 2.86%; in October, the Nasdaq fell 5.3% and the Dow rose 1.7%. Intel's guidance cut triggered concerns about returns on AI financing, and chip stocks fell across the board, with TSMC down more than 5% and Nvidia down 4.08% within the sector, while the Magnificent Seven all declined. In Chinese ADRs, the Livermore China Concept Leaders Index closed down 2.87%, with ASE Technology Holding down 11.3% and Silicon Motion Technology down 8.08%.