A-share Market Morning Report: Three major indices collectively opened lower, Shanghai SOE sector surged, and AI application sector strengthened.

On November 13th, the three major A-share indexes collectively opened lower, followed by a shaky rise. As of 9:48, the Shanghai Composite Index fell by 0.44%, the Shenzhen Component Index fell by 0.73%, and the ChiNext Index fell by 0.99%. In terms of market performance, the Shanghai state-owned asset sector saw a significant increase, the solid state battery sector remained active, AI applications showed collective strength, and rare earths, e-commerce, and other sectors were at the forefront in terms of gains. In terms of losses, the tourism and hotel sector fluctuated downward, while the semiconductor, consumer electronics, and industrial automation sectors saw the most losses. In terms of main fund flows, funds favored the aerospace equipment, minor metals, and advertising marketing industries, while fleeing from the semiconductor, IT services, optical and optoelectronic industries, and securities industries. Institutional views: Looking ahead, Huatai believes that exchange rate fluctuations may cause some short-term disturbances in the A-share market, but will not change the rhythm of the A-shares themselves. The market may consolidate in a volatile manner in the short term. CITIC SEC: The market is at the starting line of the annual level market trend, and may welcome 500 billion yuan in incremental funds next year CITIC SEC Chief Strategist Qin Peijing pointed out that the A-share market will experience an annual level upswing trend in 2025, and the second half of 2025 will usher in a new profit growth cycle. Looking ahead to 2025, with two financial instruments in place, at least 400-500 billion yuan in incremental funds are expected to be brought in next year. Under special refinancing tools, the size of repurchases in the A-share market in 2025 is expected to rise to nearly 200 billion yuan; the People's Bank of China announced that the first batch of SFISF applications has exceeded 200 billion yuan, which is expected to effectively enhance market liquidity. EB SECURITIES: The current upward trend in the index has not changed EB SECURITIES stated that on Tuesday, the market rose and then fell back, with all indexes closing lower. After a continuous rise in the markets, some funds took profits, which was the main reason for the market adjustment; in addition, the strong US dollar index rose to a four-month high, causing the Chinese yuan exchange rate to fall, and with Hong Kong stocks leading the decline, which also contributed to the market's fall. Looking ahead, it is normal to see profit-taking after a continuous rise, and the current upward trend in the indexes has not changed. With the continuous improvement of the economy, the continuous issuance of favorable policies, and ample liquidity, the market is expected to continue its upward trend with fluctuations. Huatai: The market may consolidate in a volatile manner Huatai believes that in recent days, the US dollar index has continued to rise, putting short-term pressure on the Chinese yuan exchange rate, which may cause some short-term disturbances in the A-share market, but will not change the rhythm of the A-shares themselves. In terms of trading volume, the trading volume of both markets continues to be above 2 trillion yuan, indicating active fund activity and trading fund heat. This week, the market needs time to digest the implications of last week's uncertainties and their impact, as the Shanghai Composite Index approaches the high point from October 8th, the resistance facing the market increases, and overcoming it will not be easy. In the short term, the market may consolidate in a volatile manner. Hot sectors: 1. Shanghai state-owned asset sector sees significant increase The Shanghai state-owned asset sector saw a strong rise, with companies such as Shanghai Material Trading, Y.U.D. Yangtze River Investment Industry, DLG Exhibitions & Events Corporation, Shanghai Research Institute of Building Sciences Group hitting their daily limit. Shanghai Join Buy, Arcplus Group Plc, Shanghai Xinhua Media, and others also saw significant increases. Analysis: In terms of news, the Shanghai municipal government's executive meeting tentatively approved the "Shanghai Municipal Support for Listed Company Mergers and Acquisitions Action Plan (2025-2027)", emphasizing value leadership and focusing on projects that contribute to the development of new productive forces and strengthen key industry chains. Shenwan Hongyuan Group's research report emphasizes the value of central enterprise allocation and the potential for the rise of local state-owned enterprises. 2. Active in the solid state battery sector Concepts related to solid-state batteries are actively trading, with Grinm Advanced Materials hitting a 5-day limit, Jiangmen Kanhoo Industry, and Lucky Film also hitting their limit, while LINGOOD rose by over 20%. HySum Flexibles Global, Inc., Shenzhen Senior Technology Material, Jiangsu Cnano Technology Co.,Ltd., Shenzhen V&T Technologies, and others followed suit. Analysis: Several listed companies have made progress in the field of solid-state batteries. On November 8th, Guangzhou Automobile Group stated that the company has preliminarily established a full-process manufacturing process for solid-state batteries. Chongqing Changan Automobile expects to achieve full-scale verification of solid-state batteries by 2027. Huaxi believes that the recent progress of many companies in solid-state (semi) batteries in terms of performance improvement and production progress is expected to accelerate the industrialization process of solid-state (semi) batteries. This article is reprinted from "Tencent Select Stocks", GMTEight editor: Xu Wenqiang.