A-Share Midday Review | Shanghai Composite Down 0.13%, Electric Motor Sector Leads Gains, Banking and Retail Buck the Trend

Zhitong Finance APP learned that on October 27, the three major A-share indices opened higher collectively, subsequently fluctuated and retreated, turning negative during the session. The market presented a divergent pattern characterized by "indices opening high and moving lower, thematic differentiation and rotation, and defensive heavyweights outperforming." By the midday close, the Shanghai Composite Index fell 0.13% to 3,692.58 points, the Shenzhen Component Index dropped 0.33% to 11,496.44 points, and the ChiNext Index declined 0.45% to 2,626.31 points. More than 3,700 stocks fell across the entire market. Half-day turnover in Shanghai and Shenzhen totaled RMB 870 billion, a decrease of RMB 136.1 billion from the previous trading day. In terms of capital flow, data from Cailianshe's monitoring showed that main force funds flowed net into sectors such as communications, general equipment, and culture/media in the morning session, while flowing net out of sectors including computers, electrical equipment/new energy, and electronics. Notably, the computer sector saw net outflows exceeding RMB 2.4 billion.

Market Overview

In terms of market performance, on the upside, sectors such as electric motors, reducers, retail, banking, and port/shipping led the gains. On the downside, sectors including military equipment, biological products, CRO concepts, innovative drugs, and software development led the declines. Overall, the indices opened higher and then drifted lower step by step. Adjustments were most pronounced in the military equipment and pharmaceutical/biological directions. Capital is rebalancing towards low-valuation, high-dividend heavyweight stocks and domestic consumption. Multiple stocks in the robotics supply chain hit consecutive daily limits, while heavyweight stocks and domestic consumption sectors absorbed capital. The market displayed distinct structural characteristics among individual stocks, with limited overall money-making effect.

Hot Sectors

1. Stocks in the Robotics Supply Chain Hit Consecutive Daily Limits

Stocks in the robotics supply chain remained active. The electric motor sector opened lower but moved higher, rising 3.71% in the half-day session, making it the best-performing industry sector of the day. The reducer sector also rose 1.15%. Fangzheng Motor, Kaizhong Precision, and Dayang Motor hit the daily limit up. Duolun Technology, Saifutian, and Xiangyang Bearing achieved four consecutive daily limits, Guangyang Shares achieved two consecutive daily limits, Annada rose over 8%, Tongda Power rose over 6%, and Yifan Transmission rose over 5%. However, the robotics concept index still fell 0.40% in the half-day session.

Commentary: On the news front, at the 2026 World Physical AI Conference and Partner Ecosystem Conference on October 22, Wang Xingxing, founder of Unitree Robotics, stated that with the release of GPT-6, signs of breakthroughs in physical AI have emerged, with significant progress likely within the next 1-2 or 2-3 years. He also judged that embodied intelligence could reach its "ChatGPT moment" as early as next year. Regarding industrial data, CCTV Finance cited Ministry of Industry and Information Technology data showing that China's humanoid robot production exceeded 40,000 units in the first half of 2026, with full-year output expected to surpass 100,000 units. Data from the Ministry of Commerce showed that sales of embodied intelligent robots on key platforms grew by 22.6% year-on-year in the first three quarters. It should be noted that Duolun Technology issued a risk warning announcement on the evening of October 26, stating that the company is not involved in the R&D or production of core humanoid robot bodies. Its robotics business mainly involves scenario applications for traffic management robots and customized production of coffee robots, contributing a very small proportion to revenue and profit.

2. Active Performance in the Retail Sector

The retail sector performed actively, rising 1.38% in the half-day session. Shanghai Jiubai hit the daily limit up, recording five consecutive daily limits. Maoye Commercial, Guangbai Shares, and Shenzhen SEG also hit the daily limit up. Baida Group rose over 7%, Xinhua Department Store rose over 5%, and Guofang Group rose nearly 5%.

Commentary: On the news front, the head of the Department of Consumer Promotion at the Ministry of Commerce introduced the situation of China's consumer market in the first three quarters of 2026 on October 23. The total retail sales of consumer goods increased by 1.1% year-on-year in the first three quarters, with September seeing a 1.1% increase, an acceleration of 0.7 percentage points compared to August. Retail sales of consumer goods excluding automobiles grew by 3.9%. Additionally, according to a previous announcement by Shanghai Jiubai, the company's operations are normal, its main business has not changed, and no undisclosed material information that would significantly impact the company's stock trading price has been found.

3. Banking Sector Strengthens Against the Trend

The banking sector opened lower but fluctuated upwards, rising 1.15% in the half-day session. Shanghai Rural Commercial Bank rose nearly 4%, with its share price hitting a new high for the year. China Construction Bank hit another historical high. Chongqing Bank, Bank of Beijing, and Bank of Jiangsu all rose over 2%.

Commentary: On the news front, as of now, 21 A-share listed banks have disclosed their interim dividend plans for 2026, with total proposed payouts exceeding RMB 260 billion. This covers the six major state-owned banks, four joint-stock banks, six city commercial banks, and five rural commercial banks. Among them, the six major state-owned banks plan to distribute approximately RMB 220.989 billion in cash dividends, accounting for over 80% of the total disclosed amount. Furthermore, according to third-party capital monitoring data, the banking sector saw net inflows of main force funds totaling RMB 477 million in the first hour of trading.

4. Multiple Stocks in Intelligent Driving Concept Hit Daily Limits

Multiple stocks in the intelligent driving concept hit the daily limit up, with the auto parts sector rising 0.94% in the half-day session. Zhejiang Shibao, Daming Electronics, and Tongda Electrical hit the daily limit up, while Hi-Target rose over 4%.

Commentary: On the news front, on October 26, Volkswagen Group (China) announced that it had officially obtained L3-level autonomous driving road test licenses in Hefei and had started real-road testing and data collection for L3-level technology in the city. On the same day, XPeng Group announced that its Robotaxi, "XPeng Youyou," had been approved for L4-level autonomous driving demonstration operation qualifications, allowing it to conduct L4-level Robotaxi demonstration operations throughout Guangzhou.