CSI 300 Up 3.24%
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This week, the A-share market’s upward momentum stalled. While major indices continued to rise, the pace of gains slowed, and trading volume generally declined compared to last week, indicating increasing caution among investors regarding chasing higher prices. On the index front, the SSE Index(000001) rose 2.88% for the week, setting a new yearly high. The index is currently trading 1.52% above its 5-day moving average, 3.20% above its 50-day moving average, and 13.36% above its 200-day moving average, indicating a well-preserved bullish trend. However, trading volume declined by approximately 16% compared to the previous week, suggesting weakening short-term momentum. The CSI 300(000300) gained 3.24% for the week. Although it did not reach a new high, its distance from the 200-day moving average has widened to 15.29%, reflecting steady performance from large-cap blue-chip stocks. The Shenzhen Index(399001) rose 4.73%, with improved activity in small and mid-cap stocks; the ChiNext(399006) surged 8.05%, becoming the strongest performer for the week, led by standout performance in AI, semiconductor, and computing power-related sectors.
In the Hong Kong market, the Hang Seng Index(HSI) gained 3.62% for the week. Despite trading volume sliding approximately 25.47% below its 50-day average, the trend remained stable with upward bias, though liquidity sentiment appeared somewhat cautious. In overseas markets, the S & P 500 Index(0S&P5) and Nasdaq Composite(0NDQC) rose 1.12% and 1.15%, respectively, supported by the ongoing AI boom and resilience in the U.S. economy. The latest EIA data from the U.S. showed a sharp decline of 961,000 barrels in crude oil inventories—far below market expectations of an increase—driving up international oil prices.
Changes in macroeconomic policies and economic fundamentals provided key support for market assessment. Domestically, total electricity consumption in September rose 4.5% year-on-year, slightly below the previous 5%, but still maintained an expansionary trend, indicating that manufacturing and industrial activities remain fundamentally stable. The central government convened the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, designating “high-level self-reliance and strength in science and technology,” “building a strong domestic market,” and “expanding high-standard opening-up” as key priorities for the next five years. It explicitly identified new quality productive forces, advanced manufacturing, the digital economy, and green transformation as core drivers. Additionally, the government rolled out a package of policies supporting new consumer formats and models, advancing capital market reforms, and promoting RMB internationalization, which will help boost medium- to long-term market confidence.
Internationally, geopolitical risks coexist with energy market shifts. Two major LNG exporters have warned that the EU’s new climate legislation could threaten energy security, highlighting global geopolitical risks and driving crude oil futures sharply higher. RMB trading volume increased to 8.5%, suggesting the RMB internationalization process has entered a new phase. U.S.-China economic and trade consultations will be held in Malaysia, where technological cooperation could become a new breakthrough, helping to ease trade tensions and drive valuation recovery in related sectors.
From an industry performance perspective, capital this week flowed significantly into high-growth sectors. The Telecom-Fiber Optics(G3552IG.CN) sector surged 22.17% for the week, leading all sectors in gains. Sub-sector leaders in optical modules, optical chips, and optical network equipment have seen dual improvements in earnings and valuations, driven by AI computing power, data center expansion, and the advancement of the “East Data West Computing” initiative. The sector’s trading volume approached 385.6 billion yuan, a new high for the period. With the “14th Five-Year Plan” transitioning into the “15th Five-Year Plan,” and the digital economy clearly identified as a key focus area, this sector is poised for long-term benefits. The Bldg-Maintenance & Svc(G7340IG.CN) sector rose 13.33% for the week, ranking second. This sector benefits from marginal improvements in real estate policies and the advancement of urban renewal initiatives, with clear valuation recovery evident in property management, urban services, and asset operation companies. Shenzhen recently introduced supportive policies for M&A and restructuring, providing external impetus for industry consolidation. The Elec-Contract Mfg(G3664IG.CN) sector gained 13.28%, ranking third. With recovering demand for AI devices, smart hardware, and automotive electronics, signs of order recovery at contract manufacturers are evident. The trend of domestic substitution in manufacturing is strengthening, coupled with overseas shifts in electronics manufacturing, significantly enhancing the competitiveness of Chinese electronics manufacturing service providers. Overall, the sector’s structural strength aligns with policy direction, and capital preferences are clearly concentrating on areas combining high growth potential with high certainty.
The TOP33 portfolio rose 1.98% overall this week, with 23 stocks gaining and 10 declining, highlighting intensifying structural market divergence. The top-performing stock was Dajin Heavy Industry ‘A'(002487), which surged 15.63% this week. The company ranks 18th in its O’Neil industry group, placing it in a strong position. The company specializes in wind power equipment manufacturing, benefiting from accelerated offshore wind installation and supportive new energy policies. Its O’Neil Score is 79, with an EPS Rating reaching 95, indicating strong earnings growth; its RS Rating is as high as 96, meaning its stock performance significantly outperforms the broader market; its Acc/Dis Rating remains in a favorable range, reflecting sustained institutional buying. The company leads in high-value-added products such as wind turbine towers and offshore monopiles, with orders covering top-tier domestic and international turbine manufacturers, positioning it for sustained high-profit growth.
In summary, A-shares achieved a strong rebound this week, driven by policy support and positive industry developments, with growth sectors clearly leading the gains. However, insufficient trading volume suggests that short-term upward momentum may weaken. As the policy directives from the Fourth Plenum take effect and 4,624 companies release their earnings reports next week, the market may enter a phase of structural volatility. Investors should focus on sectors with sustainably strong prospects, particularly high-quality stocks with high O’Neil Scores, high Relative Strength (RS) Ratings, and Accumulation/Distribution (Acc/Dis) Ratings between A and B, maintaining a strategy of selective positioning within a defensive framework.
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published on October 24, 2025