A-share market closing review: Shanghai Composite Index fell below 3400 points, ChiNext Index fell by 3.4%, with over 4800 stocks in the market closing in the red.

On November 14th, the market saw a decrease in trading volume, with over 4800 stocks closing in the red. By the end of the day, the Shanghai Composite Index fell by 1.73% to below 3400 points, the Shenzhen Component Index dropped by 2.83%, and the ChiNext Index fell by 3.40%. In terms of sector performance, the large financial sectors such as insurance and banking failed to support the market, while ST stocks showed strength. Stocks in the AI application and solid-state battery sectors experienced a high then pullback. On the downside, state-owned enterprises in Shanghai and Shanghai local stocks saw significant retreats, semiconductor chip stocks continued their decline, and sectors like the automotive industry, defense, and pharmaceuticals were among the biggest losers. In terms of main capital flows, funds favored large state-owned banks, black home appliances, and rural commercial banks, while fleeing from semiconductor, securities, IT services, and computer equipment industries. Institutional perspectives: Central China: The overall stock index is expected to maintain a fluctuating upward trend. Central China pointed out that the market has formed strong expectations for policy direction, and the index is currently in a strong sideways phase. Sector rotation will become more apparent. With continued domestic macroeconomic adjustments and growth-promoting policies, the stock index is expected to maintain a fluctuating upward trend overall, while still closely monitoring changes in policy, funds, and external factors. Investors are advised to focus on short-term investment opportunities in industries such as automotive, semiconductors, healthcare services, and pharmaceuticals. EB SECURITIES: Structural market trends may dominate. EB SECURITIES stated that the market saw obvious volume contraction on Wednesday, with structural market trends expected to dominate. Looking ahead, the rapid rebound and repair after corrections indicate the market's resilience, and the upward trend in the index is expected to continue. Considering the declining trading volume, it suggests a growing wait-and-see sentiment, indicating that structural market trends may dominate in the near future. Hot sectors: 1. AI applications were active. Media, gaming, short video, Sora, and other AI application directions were active. Shanghai Yaoji Technology saw two consecutive days of gains, while Shenzhen Bingchuan Network, Hubei Century Network Technology Inc., Guangdong Advertising Group, and China Publishing & Media Holdings all rose. Comment: Open Source Securities pointed out that the continuous improvement of multimodal capabilities such as large-scale model reasoning, searching, and video generation domestically and internationally may continue to support the growth in AI application users and open up commercial opportunities. It is recommended to pay attention to: large models/corpus/Agent; AI+ film and television; AI+ music; AI+ e-commerce/marketing; AI+ education publishing. 2. Solid-state battery stocks spiked and then fell back. The concept of solid-state batteries spiked and then fell back. Shenzhen Xinyuren Technology hit the limit up, while Grinm Advanced Materials, Guangdong Orient Zirconic ind sci & tech, Guizhou Zhenhua E-chem Inc., Jiangsu Ruitai New Energy Materials, Tianjin Guoan Mengguli New Materials Science & Technology all saw minor gains. Comment: New energy track sees a series of positive news: China's electric car sales in October soared by 54% to a historical high; Contemporary Amperex Technology aims to build a large independent energy system. CITIC SEC analysis shows that the rapid development of solid-state battery technology is injecting new vitality into the energy storage sector. With the breakthrough in solid-state lithium battery technology, companies in the industry like Contemporary Amperex Technology are increasing their research and development investments, which is not only a technological breakthrough but also an important driving force for the industrial upgrade in the new energy industry.