A share midday review | Shanghai index rose by 0.88%, the consumer goods sector strengthened across the board. Precious metals and military stocks are leading the decline.

On November 7th, the A-share market opened low and rose high. By the close, the Shanghai Composite Index rose by 0.88%, the Shenzhen Component Index rose by 0.44%, and the ChiNext Index rose by 0.82%. The total trading volume in the city exceeded 1.5 trillion yuan in half a day. On the market, the consumer sector continued to strengthen, with food, retail, liquor, tourism, agriculture, and other sectors leading the gains. Debt-to-equity concept stocks rose again, with real estate, traditional Chinese medicine, coal, and electricity sectors leading the gains. On the downside, high-priced stocks adjusted, with stocks like Shenzhen Aisidi, Wisesoft Co., Ltd., and Hytera Communications Corporation hitting the limit down. Shijiazhuang ChangShan BeiMing Technology, Phoenix Shipping, and Qingdao Kingking Applied Chemistry all declined, with precious metals, defense, photovoltaic, and securities sectors leading the declines. In terms of main funds, funds favored liquor, general retail, and fisheries industries, while funds exited the securities, software development, and IT services sectors. Institutional Views: Looking ahead, EB SECURITIES pointed out that with the conclusion of the US election, it is expected that domestic stimulus policies will increase significantly, which may benefit A-shares and the market may continue its trend of volatility and upward movement. Huafu Securities: There is still room for the current A-share market to continue to rise. Huafu Securities research report pointed out that despite some adjustments in the market after the holiday, there is still room for the current A-share market to continue to rise. Since the end of September, various major favorable policies have been frequently introduced in China, boosting market confidence. The micro-liquidity of the stock market has significantly improved, with trading volume exceeding trillions. Large shareholders' buybacks have significantly increased, becoming an important incremental source of funds in the market. Structurally, based on historical experience, one can focus on the technology growth sectors such as electronics and computers that are still below historical median levels and experiencing a resurgence in industry buybacks. EB SECURITIES: Prospects for future policies are promising, and the market may continue to trend upwards. EB SECURITIES pointed out that on Wednesday, the index turned green in the final moments of trading, with the direct catalyst being the US election. Media reports indicating "Trump has clinched victory" caused risk aversion sentiment to rise in the A-share market, leading to some funds exiting at the end of the trading day. Looking ahead, with the conclusion of the US election, and considering potential foreign trade risks, it is expected that domestic stimulus policies will increase significantly, benefiting A-shares and the market may continue its trend of volatility and upward movement. Currently, with Trump "clinching victory", domestic substitution and independent controllable directions are likely to receive more attention. Dongxing: There may be a shift between large and small styles in the market. Dongxing's research report believes that there may be a shift in market styles between large and small caps. After the rise of small-cap stocks in October, mid and large-cap stocks may have the upper hand in November. Historically, there is a seesaw effect between large and small caps. After a rapid rise in mid and small-cap stocks, there is demand for a rise in large-cap blue-chip companies. The core logic remains sector rotation, from valuation improvement to performance improvement, where large-cap stocks have a valuation advantage amidst large gains in mid and small caps. In terms of economic recovery, large-cap stocks have better earnings sustainability and performance certainty, and are the main focus of institutional allocation. After the early stages of a bull market, mid and large-cap styles will gradually become dominant. Popular Sectors: 1. Consumer sector strong The consumer sector showed strength, with food, retail, and liquor leading the gains. Nanfang Black Sesame Group rose for 5 consecutive days, Nanjing Central Emporium (Group) Stocks rose for 3 days, with multiple stocks like Jiugui Liquor, Shede Spirits, Zhengzhou Qianweiyangchu Food Co., Ltd., Dalian Friendship, Shanghai Xujiahui Commercial, and Xi'an Catering hitting the limit up. Commentary: On the news front, the launch of the China International Consumption Center City Boutique Consumption Month activation was kicked off, and this event is also the highlight of the 2024 "Consumption Promotion Year". Huajin Securities pointed out that with various policies being implemented, the economy will gradually recover, and companies in the liquor and catering industry chains will enjoy a big market opportunity, suggesting active attention. 2. Real estate sector strengthening Real estate stocks saw a fluctuating increase, with Risesun Real Estate Development rising for 3 consecutive days, CASIN Real Estate Development Group, Yang Guang Co., Ltd., and China Fortune Land Development hitting the limit up. Shenzhen Zhenye (Group), Gree Real Estate, Shanghai Ya Tong, Shenzhen SDG Service, Macrolink Culturaltainment Development, and Shenzhen Worldunion Group Incorporated also rose. Commentary: According to the Ministry of Housing and Urban-Rural Development's "National Real Estate Market Monitoring System" signing data, the total volume of new commercial housing and second-hand housing transactions in October increased by 3.9% year-on-year, achieving growth for the first time after continuous decreases for 8 months since February. Fangzheng Securities research pointed out that the core fact of the current real estate sector being undervalued and having low positions has not changed, and with recent significant improvements in the fundamentals, the sector's continued rebound has a basis and logic. 3. Debt-to-equity concept rising Debt-to-equity concept stocks saw another rise, with M-Grass Ecology And Environment rising by more than 10%, and Citic Niya Wine, AVIC Industry-Finance Holdings have hit the limit up, Huawen Media Group, Cinda Real Estate both increased by over 5%, Hainan Haide Capital Management, Shaanxi International Trust, Everbright Jiabao, Shenzhen Worldunion Group Incorporated followed the trend.Review: Yang Delong, Chief Economist and Fund Manager of Qianhai Kaiyuan Fund, stated that one of the main risks in the current Chinese economy is local government debt. By increasing the debt limit on a one-time basis, replacing existing hidden debts of local governments, and providing stronger support to help local governments resolve debt risks, it can also alleviate the environmental pressure on local governments. This article is reproduced from "Tencent Self-selected Stocks"; Edited by GMTEight: Wang Qiujia.