On November 10, the A-share market experienced a downward trend, with the ChiNext Index dropping over 2%. By midday, the Shanghai Composite Index fell 0.03%, the Shenzhen Component Index declined 0.59%, and the ChiNext Index plunged 2.13%.
Sector-wise, the consumer sector saw a sudden surge during trading, while the lithium battery sector repeatedly strengthened. Chemical, semiconductor, and ultra-hard materials sectors also performed actively. In contrast, construction machinery, electronic components, and robotics sectors weakened. Nearly 2,300 stocks declined across the Shanghai, Shenzhen, and Beijing markets.
In Hong Kong, the three major indices adjusted amid fluctuations, with Tongcheng Travel, BYD, and Kingsoft leading gains.
The consumer sector notably surged, led by food & beverage and duty-free segments. China Tourism Group Duty Free Corporation (CTG Duty-Free) hit the daily limit-up, reaching a nearly two-year high.
Key catalysts include the first-week results of Hainan’s new offshore duty-free policy (November 1–7), with Haikou Customs reporting duty-free sales of 506 million yuan and 72,900 shoppers, up 34.86% and 3.37% YoY, respectively. Other stocks like Dongbai Group, Jinjiang Hotels, Guoguang Chain, Sanyuan Foods, Huifa Foods, and BBFood also surged to limit-up.
Positive signals emerged from October’s inflation data released by the National Bureau of Statistics on November 9. Supported by domestic demand-boosting policies and holiday effects, the CPI rose 0.2% MoM and YoY, while core CPI (excluding food and energy) climbed 1.2% YoY, marking the sixth consecutive month of expansion. Additionally, the Ministry of Finance’s mid-2025 fiscal policy report pledged further measures to stimulate consumption, including subsidies for personal loans in key sectors and service industries like elderly and childcare.
Meanwhile, the ASIC chip index declined, with Chips&Media dropping by the limit-down, Hua Hong Semiconductor falling nearly 7%, and Cambricon, Longsys, and SMIC following the downtrend.
On November 9, China’s Commerce Ministry responded to EU concerns over Nexperia, attributing global semiconductor supply chain disruptions to Dutch actions. China urged the EU to press the Netherlands to revoke restrictive measures, emphasizing its own exemptions for compliant civilian exports to ensure supply chain stability.
CITIC Securities noted that major memory manufacturers halted DDR5 quotes, driving spot prices up 25%, with quarterly gains potentially hitting 30%–50%. Rising memory chip prices, CXMT’s capacity expansion, and HBM3 deliveries could further boost upstream material demand. Amid potential external restrictions, domestic tech self-reliance is expected to accelerate, fueling incremental demand for semiconductor materials.