【 AI Generation Disclaimer 】
Financial sector launches a "combination punch" to stabilize the market
The executive meeting of the State Council held on November 6 proposed to improve the market stabilization mechanism of the capital market, enhance the inherent stability of the stock market, and promote the stable and healthy development of the capital market. Since this week, various market rescue measures introduced by regulatory authorities have gradually helped investors regain confidence.
On the 2nd, the central bank, in conjunction with the China Banking and Insurance Regulatory Commission and other departments, held symposiums on facilitation of exchanges among securities firms, fund companies, and insurance companies, as well as on re-lending for stock repurchases and share increases. Two policy tools targeting the capital market were introduced: firstly, operations to facilitate exchanges among securities, fund, and insurance companies were launched, with 31 securities and fund companies declaring their needs, requesting a total amount exceeding 100 billion yuan; secondly, the policy of re-lending for stock repurchases and share increases was transformed from a temporary arrangement to a long-term institutional one, with the re-lending interest rate reduced to 1%.
On the 4th, Pan Gongsheng, the governor of the central bank, stated that it is necessary to maintain the stable operation of financial markets such as stocks, bonds, and foreign exchange, and to ensure that no systemic financial risks occur. Support is given to China Foreign Exchange Trade System Corporation (CFTC) to play a role similar to that of a stabilizing fund.
At the same time, the China Securities Regulatory Commission (CSRC) is making every effort to promote "market-protection-style repurchases," adjusting and optimizing relevant systems to enhance the convenience of such repurchases; the first batch of active ETF has also gradually started building positions, and it is expected to bring nearly 36 billion yuan in additional funds to the market.
On the 4th, the A-share market witnessed a violent rebound. The Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, and Science and Technology Innovation Composite Index rose by 2.16%, 4.22%, 6.4%, and 9.9% respectively, with the trading volume of the Shanghai and Shenzhen stock markets returning to over 2 trillion yuan.
【Comment】Analysis suggests that the introduction of a series of measures reflects the regulatory authorities' commitment to stabilizing expectations and maintaining the smooth operation of the capital market. In the short term, these measures are expected to help alleviate pessimistic sentiment and restore risk appetite. In the medium term, they may improve the supply and demand of funds through institutional allocation and repurchase activities, thereby enhancing the market's capacity to absorb shocks. Overall, the market has shifted from panic-induced deleveraging to a phase of recovery from excessive declines; however, for a reversal, there is a need for sustained volume, positive earnings, supportive policies, and favorable external risk appetite.
The central bank raises the foreign exchange deposit reserve ratio for the first time in five years
The People's Bank of China announced that starting from November 15, it will raise the foreign exchange deposit reserve ratio for financial institutions by 2 percentage points in order to stabilize market expectations and maintain the smooth operation of the foreign exchange market. This is the first time in nearly five years that the central bank has raised the foreign exchange deposit reserve ratio.
Since the beginning of this year, the RMB has continued to strengthen. In the first nine months, the exchange rate of the RMB against the US dollar has appreciated by 4.2% in total. Since late October, the appreciation rate has accelerated; the onshore RMB exchange rate has appreciated for 14 consecutive trading days starting from October 14th, with each of the last two trading days seeing an appreciation of around 100 pips. On November 2nd, it broke through 6.65 yuan.
After the announcement was released, the exchange rate of the offshore RMB against the US dollar immediately fell, breaking through the 6.65, 6.66, and 6.67 levels successively; the exchange rate of the onshore RMB against the US dollar also declined accordingly.
【Comment】The foreign exchange deposit reserve ratio for financial institutions is an important macro-prudential management tool in the foreign exchange market. When the RMB exchange rate appreciates too rapidly, the foreign exchange deposit reserve ratio can be increased to tighten the liquidity of US dollars within the country and alleviate the pressure of RMB appreciation; when the RMB exchange rate depreciates too rapidly, the foreign exchange deposit reserve ratio can be decreased to ease the pressure of RMB depreciation. This adjustment sends a policy signal from the central bank to the market that it aims to stabilize market expectations and maintain a reasonably balanced level of the RMB exchange rate.
Multiple indicators of the China International Import Expo (CIIE) reach new highs
On November 5th, the 9th China International Import Expo opened in Shanghai. For the first time, the total exhibition area of this grand event exceeded 440,000 square meters, with 4,142 overseas companies participating in the exhibition.
At this year's CIIE, the number of companies participating for the first time will exceed 2,000, with over 300 being from the Fortune Global 500 and industry leaders. There are more than 480 exhibits making their global debut, Asian premiere, or Chinese debut, setting a new record for all previous years.
Cutting-edge technological achievements are showcased, covering areas such as artificial intelligence, healthcare, elderly care services, and circular economy, representing the latest directions in global industrial innovation. Qualcomm from the United States has participated in the exhibition for nine consecutive years, bringing the world's first prototype of a 6G terminal. Biopharmaceutical company Jie Te Bei Lin presented four products that are making their debut in China at this year's CIIE, and together with its partners, they launched an intelligent medical system for the diagnosis and treatment of rare diseases for the first time in China, utilizing digital and intelligent technologies such as artificial intelligence to aid in the early detection of rare diseases.
【Comment】The 9th China International Import Expo (CIIE) has once again set new records in various aspects, reflecting the global enterprises' continued optimism about the Chinese market as well as the growing international influence of the expo. Over the past nine years, the nature of the CIIE has undergone subtle changes. In 2018, the inaugural event allowed more foreign goods to enter China; today, it has become an important platform that connects global innovation, industries, and markets. Against the backdrop of increasing uncertainties in the world economy and profound adjustments in the international economic and trade landscape, China continues to release market and innovation dividends to the world, relying on its vast domestic demand and a complete industrial chain ecosystem, while also sending a firm signal that its own openness creates opportunities for others.
Shanghai's second-hand housing transaction volume reaches a new high in the same period over the past six years
Data from the Shanghai Real Estate Trading Center shows that in October, a total of 26,100 units of new and second-hand housing were sold in Shanghai, representing a year-on-year increase of 33%; from September to October, a total of 51,200 units were sold, with a year-on-year increase of 23%, indicating a clear acceleration in the pace of residents purchasing homes.
Among them, the activity of second-hand housing transactions continued to rise, with 22,300 transactions in October, a month-on-month increase of 6% and a year-on-year increase of 34%. The transaction volume reached a new high for the same period in nearly six years. The total number of second-hand housing listings in Shanghai has also been declining since October 2025, and as of the end of October this year, it was about 166,000 units, which is 42,000 units less than the peak in September last year, indicating that the inventory pressure is gradually easing.
Data from the National Bureau of Statistics shows that Shanghai has the highest month-on-month increase in second-hand housing prices among first-tier cities, and it is also the first city to see a year-on-year increase in second-hand housing prices turning positive.
【Comment】The performance of second-hand housing in Shanghai in October can be described as a “golden October.” The implementation of policies, combined with the release of demand, has driven a good performance in transactions in the market. Analysts believe that the increase in second-hand housing transactions in Shanghai this round is mainly due to the need for replacement. The funds reaped by residents from selling their homes will gradually flow into the new housing market, which also helps to continuously facilitate the transition between first-hand and second-hand housing, providing stable purchasing power support for the new housing market.
Hainan introduces new regulations for existing houses; the first provincial-level detailed rules are implemented
On November 6th, Hainan issued new regulations for the sale of existing houses, becoming the first region to implement detailed rules at the provincial level following the "August 28th New Policy."
Hainan is also one of the first provinces in the country to implement the policy of selling existing homes across the entire region. As early as March 2020, Hainan stipulated that newly allocated land for the construction of commercial housing must be used for the sale of existing homes. According to statistics from the China Index Academy, Hainan has allocated more than 370 plots of land ( totaling 19,600 mu) for the sale of existing homes (including affordable housing), with approximately 58,500 sets of existing homes being delivered and registered upon completion.
On this basis, the detailed regulations of Hainan divide projects into three categories based on the time of land transfer. For commercial housing projects that use newly transferred land after August 28, 2026 (inclusive), the sale of completed houses will continue to be implemented; for land transferred between March 8, 2020 (inclusive) and August 28, 2026, the conditions for selling completed houses will follow the original policies; for land transferred before March 8, 2020, pre-sale can continue, but the sale of completed houses is encouraged.
【Comment】Unlike other cities that have transitioned from a pre-sale-oriented approach to a pilot program for off-plan housing sales, Hainan has clearly decided to continue with off-plan housing sales and has not allowed pre-sales for newly allocated land. At the same time, it has further clarified the connection with previous off-plan housing sales policies, implementing a smooth transition of the system over three time periods. As one of the first provinces in the country to implement off-plan housing sales across the entire region, Hainan's experience will provide a sample for continuous observation by other regions.
The Democratic Party in the United States sweeps Congress
According to Xinhua News Agency, several American media outlets predict that the Democratic Party in the United States will defeat the Republican Party in the mid-term elections held on the 3rd, reclaim control of both the Senate and the House of Representatives, and take back control of the U.S. Congress.
NBC predicts that the Democratic Party could win more than 250 seats in the House of Representatives, exceeding the majority threshold of 218 seats and achieving a “major turnaround.” The media also predicts that the Democrats will defeat the Republicans in several key states to gain Senate seats, including traditional Republican strongholds such as South Carolina, Texas, and Kansas.
U.S. President Donald Trump said in a media interview that he is prepared to cooperate with Democrats. He acknowledged that the conflict in Iran has "had a certain impact" on the Republican Party's electoral performance, but he has no regrets, stating, "If I could do it again, I would do the same." He also mentioned that rising oil prices are the biggest political burden.
【Comment】The Democratic Party's overwhelming victory is essentially the American people expressing their dissatisfaction with the current government through their votes. The "tariff war" initiated by the Trump administration and the military actions against Iran have led to rising prices and living costs within the United States, which became the main reasons for the Republican Party's disastrous election losses. With the Democrats now controlling both houses of Congress, the Trump administration will face greater resistance in its future policies. Trump may resort to the presidential veto power to negotiate with Congress. At the same time, the president's diplomatic authority is relatively limited due to direct congressional constraints, so Trump is likely to adopt more unilateral policies in foreign affairs.
The sharp decline in U.S. stocks has dragged down global markets.
The U.S. stock market suffered a sharp decline on Thursday, with all three major indices recording their largest single-day drops since April 2025. Among them, the Dow Jones Industrial Average fell by 3.44%, the S&P 500 index dropped by 4.36%, and the Nasdaq Composite Index tumbled by 5.52%. The tech sector led the declines with a drop of 7.30%.
Panic spread to the Asia-Pacific markets. On the 6th, stock markets in Japan and South Korea opened lower and then tumbled sharply, with the Nikkei 225 index falling by 5.96%, and South Korea's KOSPI index dropping by 6.02%.
On the news front, the Democratic Party in the United States has won both houses of Congress, raising concerns in the market that regulations regarding spending on artificial intelligence ( AI ) and data center construction will become stricter, prompting investors to accelerate their withdrawal from the chip sector.
Despite a rebound in tech stocks on Friday, with the Philadelphia Semiconductor Index rising by 4.21%, the major stock indices still recorded declines this week: the Nasdaq Index fell by 3.4%, the S&P 500 Index fell by 2.7%, and the Dow Jones Index fell by 0.9%.
【Comment】Analysis suggests that the recent sharp decline in U.S. stocks was triggered by changes in political sentiment resulting from the mid-term elections in the United States. It is also related to the excessive investment risks that have accumulated over a long period in the U.S. capital market. The Democrats, who now control both the Senate and the House of Representatives, have frequently signaled strong regulation of AI and claimed to suspend the construction of artificial intelligence data centers, which has exacerbated market panic regarding overheated investment in AI. As the election results are gradually being digested and the potential policy impacts become clearer, investors may need to prepare for more volatility.
