On November 10, the market rebounded after an early dip, with mixed performances across major indices. The Shanghai Composite Index turned positive in the afternoon and climbed steadily, while the ChiNext Index narrowed its losses after dropping over 2% earlier. At the close, the Shanghai Composite rose 0.53%, the Shenzhen Component gained 0.18%, and the ChiNext fell 0.92%.

Sectors such as baijiu (Chinese liquor), tourism & hospitality, and duty-free shops led gains, while natural gas, wind power equipment, and robotics lagged. Over 3,300 stocks advanced across the market, with combined turnover in Shanghai and Shenzhen hitting 2.17 trillion yuan—a 175.4 billion yuan increase from the previous session.

Amid rotational trends and positive catalysts, capital flowed into the lower-resistance consumer sector. At 10:37 AM, China Tourism Group Duty Free Corp. (CTGDF) hit its first limit-up in months, maintaining the surge until the close at 10:52 AM.

A prominent value investor with nearly 600,000 followers on Snowball posted emotionally: "Haven't seen a limit-up push notification from my holdings in years—tears streaming down."

Analysts noted CTGDF's historical role as a bellwether for consumer sector rallies, making its limit-up symbolically significant. The market's rotation from high-valuation sectors appeared pronounced, underscoring timing as crucial for investors.

Data from Tonghua Shun showed consumer themes dominating gainers—baijiu, dairy, airport shipping, and duty-free shops—with Hong Kong-listed consumer stocks like Auntea Jenny, CTGDF, Weilong Delicious, and Pop Mart also rising.

Multiple tailwinds buoyed the sector: 1. **Macro improvements**: October CPI rose 0.2% month-on-month and year-on-year, with core CPI (ex-food/energy) up 1.2%—marking six consecutive months of expansion. 2. **Duty-free policy boost**: New Hainan offshore duty-free policies effective November 1 spurred tourism spending, with full island customs closure expected to accelerate economic growth post-December 18. 3. **Fiscal support**: The Ministry of Finance pledged continued consumption stimulus via loan subsidies for key sectors and services like elderly/childcare.

Guojin Securities highlighted four emerging consumer trends: 1. **Brand globalization 2.0**: Pricing power in emerging markets. 2. **Emotional-value sectors**: Collectibles, pets, jewelry, and beauty capturing rising GDP-per-capita demand. 3. **Functional innovation**: AI-driven commerce, education, and interactive products like smart glasses/toys. 4. **Channel evolution**: Instant retail and affordable F&B chains.

Meanwhile, the AI computing sector faced pressure intraday, with stocks like InnoLight, Foxconn Industrial Internet, and Shenghong Technology recovering partially by the close. Recent discussions around MoonDark’s open-source Kimi K2 model and Ant Group’s announcement of a 10,000-card domestic computing cluster (98% stable, rivaling global peers) reignited debates about AI investment resilience.

Institutions observe global tech’s financial vulnerabilities driving focus toward high-certainty plays, with AI remaining a contested theme. Some reports note over 60% institutional exposure to AI-linked sectors (TMT, materials, new energy), suggesting selectivity based on ROE recovery rather than avoiding AI narratives entirely.

CICC advises: 1. **Cyclical recovery**: Steel, chemicals,建材, and agriculture benefiting from October’s CPI/PPI rebound. 2. **Tech growth**: Stick with AI computing while exploring undervalued AI software, defense, and biotech.