A-share pre-market report | Real estate welcomes tax incentives package! Rumors of CICC and China Galaxy merger resurface.

Morning headline news brief 1. Real estate welcomes a big tax gift: Deed tax and value-added tax both reduced, benefiting home buyers and real estate companies. The Ministry of Finance and two other departments issued documents outlining several tax incentives to support the development of the real estate market, including reductions in deed tax and value-added tax. Zheshang stated that this policy will benefit second-hand homes more, and for real estate companies, it will help alleviate cash flow pressure and restore profit margins. 2. Insurance funds make big moves with shareholding! New China Life Insurance acquires two pharmaceutical stocks in one day, with insurance funds making a total of 14 moves this year. China National Medicines Corporation and Shanghai Pharmaceuticals Holding announced that New China Life Insurance increased its holdings through centralized bidding, triggering a takeover. Statistics show that insurance funds have made 14 moves this year, taking over 13 listed companies, setting a new high in the last four years. 3. New energy sector receives intensive good news! Chinese electric car sales soar 54%, Contemporary Amperex Technology focuses on independent energy systems. The new energy sector receives a series of positive news, with reports showing a 35% growth in global electric car sales in October, including a 54% increase in sales in China. In addition, Contemporary Amperex Technology has stated its goal to reshape itself as a green energy supplier, aiming to develop and manage a "zero carbon" power grid business ten times larger than supplying electric vehicle batteries. 4. CICC and China Galaxy stocks see unusual movement, sparking merger rumors again, both parties respond: the company is not aware of this. Several merger and reorganization expectations in the securities sector experienced unusual stock movements yesterday, with CICC reaching a trading limit up and China Galaxy rising over 6%. Both parties stated that all information should be based on official announcements. An individual close to CICC speculated that the two companies are close to finalizing a merger or reorganization plan. Internal sources suggest that China Galaxy will absorb CICC's wealth management division while CICC maintains its independence. Financial calendar There are no new stock purchases or listings on the Shanghai and Shenzhen stock exchanges today. Hint: Synthetic Biology Industry Conference is held today. Opportunities to watch After evaluating the investment opportunities that the market is focusing on, it is found that Brain-Machine Interfaces, photovoltaics, and flying cars are receiving attention. 1. Shanghai's first Brain-Machine Interface surgery completed, industry on the verge of a major transformation in mass applications. Recently, Bo Ruikang Medical Technology (Shanghai) Co., Ltd., in cooperation with Professor Hong Bo's team from the Biomedical Engineering School of Tsinghua University, successfully completed the third national and first clinical trial implant surgery of the Brain-Machine Interface product NEO at Fudan University Affiliated Huashan Hospital. The product, developed and tested in Shanghai, became China's first Brain-Machine Interface product to enter the Innovative Medical Management equipment special review procedure in August this year. Comment: Sealand believes that Brain-Machine Interfaces represent a new productive force and future direction for the industry. Policies support the development of Brain-Machine Interface industries, and medical insurance also supports their medical applications, with Brain-Machine Interface technology on the cusp of a major shift towards mass applications. 2. Largest photovoltaic centralized procurement in history! Power Construction Corporation of China, Ltd. announces bidding for 51GW of photovoltaic components and inverters for 2025. On November 13th, Power Construction Corporation of China, Ltd. issued a tender announcement for the centralized procurement project of 51GW of photovoltaic components and inverters for 2025. According to the announcement, this bidding will determine the selected suppliers for Power Construction Corporation of China, Ltd.'s 2025 photovoltaic components (the number of selected suppliers depends on the actual number of bidders) and sign a framework agreement with them. The framework agreement will remain valid until the results of the next year's centralized procurement are officially announced. Comment: Donghai Securities believes that with policy support and industry self-regulation, the short-term photovoltaic industry is expected to see a return to orderly competition; it is expected that supply and demand imbalances will ease by 2025, and business conditions will stabilize and recover, ushering the industry into a new stage of high-quality and healthy development. 3. Global flying car sector receives largest order, with over 2,000 units pre-ordered for the Xiaopeng Huitian "Aircraft Carrier on Land". Xiaopeng Huitian has announced that the Xiaopeng Huitian "Aircraft Carrier on Land" received bulk pre-orders of over 2,000 units at the China International Aviation & Aerospace Exhibition, marking the largest order in the flying car industry to date. According to official plans, the Xiaopeng Huitian "Aircraft Carrier on Land" will begin pre-sale at the end of 2024, with large-scale deliveries starting in 2026, aiming to sell over 10,000 units annually, with each unit priced at no more than 2 million yuan. Comment: Changjiang believes that China has established a relatively complete low-altitude economic industrial chain, with upstream materials and core components, midstream drones, aircraft, and supporting equipment, downstream aviation management and information technology, and industry applications. It is recommended to focus on the entire industry chain. Market outlook China Securities Co., Ltd.: A distinctive bull market for A-shares, preparing for the year-end rally. China Securities Co., Ltd. believes that with year-end meeting policy expectations, recovery expectations, and liquidity support, we judge that although there may be some short-term fluctuations, there will likely be a year-end rally. Focus on three key clues: Debt-to-equity policy driving reevaluation of the value of financial, state-owned enterprises, construction, environmental protection, and related sectors; New productive forces (such as AI driving and low-altitude economy) and elastic directions like autonomous control; Market expectations from the upturn under policy support, including new energy vehicles, non-banking financial institutions, military industry, lithium battery energy storage, machinery, domestic medical devices, and more. From an index perspectiveWe expect that in this round of reassessment, the A500 index will be an important index, showing a oscillating upward trend, and gradually becoming a new benchmark for A-shares. We will also continue to focus on building A500 index enhancement strategies, striving to outperform passive indexes.Listed Company Positive and Negative Announcements In terms of positive announcements, focus on Jiangsu Eastern Shenghong's controlling shareholder's plan to increase shareholding, etc.; in terms of negative announcements, pay attention to the risk warning issued by Daqian Ecology & Environment Group after 7 consecutive trading limit ups. Positive Announcements 1. Jiangsu Eastern Shenghong: Controlling shareholder and its concerted action party plan to increase company's shares by 2-4 billion RMB 2. Chongqing Sokon Industry Group Stock: Plans to distribute a cash dividend of 3.31 RMB per 10 shares, totaling 500 million RMB 3. Boe Technology Group: Obtains 700 million RMB loan support from Industrial and Commercial Bank of China for share repurchase 4. Aerospace Nanhu Electronic Information Technology: Secures approximately 493 million RMB new orders for new type of air defense early warning radar system 5. LUSTER LightTech: Intends to acquire 99.95% equity of JAI company for 103 million euros 6. Ningbo Construction: Jointly wins bid for EPC general contracting project worth approximately 927 million RMB Negative Announcements 1. Hob Biotech Group Corp., Ltd, up by 20% for 7 consecutive days: Trading suspension verification completed, stock resumes trading on November 14 2. 7 consecutive trading limit ups for Daqian Ecology & Environment Group: Rolling P/E ratio and P/B ratio significantly higher than average level 3. 5 consecutive trading limit ups for Grinm Advanced Materials: Company supplies small quantities of solid electrolyte materials for power batteries to customers, with this product business revenue accounting for a small proportion of main business revenue 4. 7 consecutive trading limit ups for Solareast Holdings in 8 days: Company's fully liquid-cooled supercharging station in internal trial stage, with no related business revenue or income 5. 4 consecutive trading limit ups for Shanghai Golden Bridge InfoTech: Company's latest P/E ratio significantly higher than industry average P/E ratio 6. Hybio Pharmaceutical: Former director Yuan Jiancheng convicted of misappropriation of funds, sentenced to three years and six months in prison 7. Hunan Goke Microelectronics: State's large fund reduces shareholding proportion by more than 1% Unlocked List In terms of unlocked proportion, Suzhou Wanxiang Technology's actual unlocked proportion in the next 5 days is 85.53%, followed by Acm Research (Shanghai), Inc. and Jiangsu Cai Qin Technology with the highest unlocked proportions. Overseas Markets US CPI inflation rebounded but did not change market bets on rate cuts in December, S&P closed narrowly higher; RMB assets fell, Chinese concept stock index dropped by 1%; gold futures fell by 0.75%, closing at $2586.50 per ounce; oil futures closed at $68.43 per barrel, an increase of 0.46%. This article is reprinted from "Tencent Stock Picks", edited by GMTEight: Xu Wenqiang.