On November 4, the A-share market suddenly exerted force in the afternoon and ushered in a hearty rebound.
As of the close, the Shanghai Composite Index rose 2.16%, the Shenzhen Composite Index rose 4.22%, and the ChiNext Index rose 6.40%. Science and Technology 50 rose 9.92%. The market-wide turnover was 2.05 trillion yuan, with more than 4,600 stocks rising.
In terms of sectors, semiconductors exploded, with many stocks hitting their daily limit; communication equipment and precious metals surged, and most sectors such as electronic components, computer hardware, and biotechnology rose.
Let’s look at the data first.
Science and Technology 50 rose 9.92% in a single day. What is the concept? Since the launch of the Science and Technology Innovation Board, there have been only a handful of instances where stocks rose by more than 9% in a single day, often corresponding to important changes in policy or industry levels. The growth rate of the GEM Index was 6.40%, which was also at the forefront in the market in the past two years.
On the surface, this is an oversold rebound. But looking at a deeper level, behind the rebound is the resonance of three forces.
First, the policy continues to exert force. On November 4, in order to maintain the smooth operation of the capital market, the People's Bank of China stepped up its implementation of the stock repurchase, holdings, and re-lending policy. Announced that starting from November 4, 2026, the stock repurchase and holding refinancing interest rate will be reduced by 0.25 percentage points to 1%. In addition, the People's Bank of China will continue to fully meet the re-lending needs of banks and support banks in actively meeting the financing needs of listed companies and major shareholders.
Recently, the China Securities Regulatory Commission and other departments have released signals on multiple occasions that they are fully committed to stabilizing the market and stabilizing expectations, and have introduced a number of measures to increase market liquidity. Yang Delong, managing director and chief economist of Qianhai Kaiyuan Fund, said in an interview with Sanlihe that the favorable policies are reversing investors' overly pessimistic expectations. "It can be said to be a timely rain that will help promote a stabilizing rebound in the market. Individual technology stocks with relatively large declines may experience oversold rebounds."
The second level is extreme compression on the valuation side. Taking Science and Technology 50 as an example, after continuous adjustments since July, the overall valuation of the sector has fallen back to a lower range. When pessimistic expectations are fully priced in, any marginal improvement can trigger a dramatic correction. The tighter the spring is compressed, the more violent the rebound will be.
In Yang Delong's view, the adjustment of the technology sector since early July is a correction to the previous rise in the technology stock bubble, not the bursting of the technology bubble, which means that there is no problem with the fundamentals of AI technology.
The third step is to accelerate the entry of incremental funds into the market. According to the China Securities Regulatory Commission, upon application from relevant institutions, the China Securities Regulatory Commission, in consultation with the People's Bank of China, has approved 31 securities companies and fund management companies to carry out the third batch of swap convenience operations, with an application quota of more than 100 billion yuan. On November 3, a number of securities firms announced that they had won the bid for the third batch of swap facilities, and stated that they would speed up the use and business implementation of the winning bid quota and further increase their holdings of stocks and stock ETFs.
On November 4, the China-Korea Semiconductor ETF Huatai-Pineridge (513310) rose by more than 6% in the afternoon, with a transaction volume exceeding 26.2 billion yuan, breaking the previous historical record of 25.98 billion yuan in transaction volume set on July 29, 2026.
Market participants generally believe that the real bottom of the market is never built in one day. The key lies in whether subsequent incremental policies can be implemented and whether the intensity of implementation exceeds expectations.
Another observation window is volume. On November 4, the total market trading volume returned to 2 trillion. Whether it can continue to increase in the future is an important indicator for judging the quality of the market.
The rebound of A shares on November 4 was a concentrated release of emotions and signals. It shows that the market does not lack money, but confidence; once confidence is ignited, the speed will exceed expectations.
But how long the flame can burn depends on whether the firewood can keep up. Policies are firewood, performance is firewood, and determination to reform is even more firewood.
