The Economic Information Daily, October 30 — On the last trading day before China's National Day Golden Week, the Shanghai and Shenzhen stock markets showed divergent trends. The SSE Composite Index rose 0.31%, closing at 3,842.19 points, but fell 3.61% for the entire month. The Shenzhen Component Index dropped 0.11% today, while the ChiNext Index declined 0.23%. With strong pre-holiday sentiment, trading volume in both markets remained low, with total turnover reaching only 1.44 trillion yuan (RMB, same below), up slightly by 288 billion yuan, or 2%, compared to the previous trading day.

Notably, A-shares will be closed from October 1 to 7 and resume trading on October 8.

On the market front, pharmaceutical stocks performed strongly throughout the day, with the sector rising over 3%. CanSino (SSE:688185) and Traill International (SSE:688806) surged by 20% to hit their daily limits. Overseas, a major ADC collaboration was finalized, with Summit receiving a $2 billion strategic equity investment from AstraZeneca. Consumer stocks rallied in the afternoon, with liquor stocks gaining 2.2%. With the National Day holiday approaching, market expectations for liquor consumption have warmed. Additionally, China's National Development and Reform Commission announced that the fourth tranche of ultra-long-term special treasury bonds worth 62.5 billion yuan, aimed at supporting trade-in programs for consumer goods, has been allocated to local governments. On the downside, the semiconductor supply chain pulled back, with the memory chip sector index falling 2.7%, the worst performer.

Looking back at September, the highlight was the Xi-Biden summit. President Xi Jinping made his first state visit to the United States in 11 years, drawing significant domestic and international attention. Although President Trump hosted Xi with the highest honors and both leaders described the talks as "successful," the market perceived limited substantive outcomes. The extension of the U.S.-China trade war truce was shorter than expected, and there were no signs of major breakthroughs on issues such as artificial intelligence, trade surplus, or Taiwan. Concerns also arose over the slowing domestic economic growth. The central government recently introduced a package of policies to stimulate domestic demand, including mortgage interest fiscal subsidies and a cut in PSL interest rates. However, some major banks analyzed that the overall scale of the package is moderate and insufficient to break the deleveraging trap, expecting full-year real GDP growth to remain near the lower end of the 4.5% to 5% target range. The Shanghai Index saw limited gains during the leader's overseas visit and even broke below the 3,900-point level on September 24, failing to reclaim 3,900 by the end of the month. The SSE Composite Index fell 3.61% for the month. (ry)