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The Shanghai Composite Index retreated after a surge on Tuesday, losing the 4,000-point mark, with the non-ferrous metals sector leading the decline. The Shanghai Composite Index retreated after a surge on Tuesday, closing slightly lower. It briefly touched the 4,000-point mark but failed to hold, with the non-ferrous metals sector being the primary drag. Analysts point to a technical correction after the market reached its peak. However, the outlook is positive. Rising expectations for Chinese policies, positive signals in Sino-US trade negotiations, and expectations of a Federal Reserve rate cut will boost investor risk appetite and drive the market further upward. The Shanghai Composite Index closed down 0.2% at 3,988.22 points, having reached an intraday high of 4,010.73. The CSI 300 Index fell 0.5%. The Shenzhen ChiNext Index edged down 0.15%, while the Shanghai Stock Exchange STAR Market 50 Index closed down 0.8%. Analysts believe that the highlights of China's third-quarter financial reports were primarily in the technology and anti-involutionary sectors. The Fourth Plenary Session of the 19th Central Committee of the Communist Party of China set the tone for the 15th Five-Year Plan, further boosting sentiment by optimizing the path of economic transformation and enhancing long-term market confidence. 4. In terms of overseas factors, Sino-US relations are expected to stabilize and improve in the short term, and negotiations may yield results. The probability of the Federal Reserve cutting interest rates for the second time this year is high, and the global liquidity environment is tending to be loose. Global companies are paying attention to the developments of the Sino-US trade war, especially the expected meeting between US President Trump and Chinese President in South Korea this Thursday, hoping that the two major economies can resolve their differences. 5. Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the 2025 Financial Street Forum Annual Meeting that it will initiate the deepening of the GEM reform and promote comprehensive reforms in investment and financing to enhance the inclusiveness and competitiveness of the capital market. On the same day, the China Securities Regulatory Commission issued a plan to optimize the qualified foreign investor system and opinions on strengthening the protection of small and medium-sized investors. The non-ferrous metals sector led the decline, with the CSI Non-ferrous Metals Industry Thematic Index falling 3.2%, and Jiangxi Copper falling 5.6%. The military sector rose against the trend, with the CSI National Defense Index rising 1.5%.