Xiangcai Securities says A-share indices traded mostly lower from 19–23 Oct 2026 but registered a one-day V-shaped reversal on 23 Oct. The Shanghai Composite briefly fell below 3,600 before recovering to close higher; the Shenzhen Composite and ChiNext formed bullish engulfing patterns. The firm views the move as sentiment repair rather than a profit-driven broad reversal and expects the Shanghai Composite to form a short-term phase bottom near 3,700. It warns short-cycle macro indicators show s

Xiangcai Securities says A-share indices traded mostly lower from 19–23 Oct 2026 but registered a one-day V-shaped reversal on 23 Oct. The Shanghai Composite briefly fell below 3,600 before recovering to close higher; the Shenzhen Composite and ChiNext formed bullish engulfing patterns. The firm views the move as sentiment repair rather than a profit-driven broad reversal and expects the Shanghai Composite to form a short-term phase bottom near 3,700. It warns short-cycle macro indicators show signs of peaking and overseas tech volatility has transmitted domestically, contributing to a break of July lows and a downshift in troughs; October’s weak bias remains intact despite the rapid intraday rebound.