A-share market closing review: A-share market plunged again, ChiNext Index fell by 3.91%, AI application end strengthened again.

On November 15th, A-shares once again plunged, with over 4300 stocks falling in the market. The total turnover exceeded 1.8 trillion yuan for the day, a decrease of 12 billion yuan compared to the previous day. By the close of trading, the Shanghai Composite Index fell by 1.45%, the Shenzhen Component Index fell by 2.62%, and the ChiNext Index fell by 3.91%. On the market, financial technology stocks plummeted, with Hithink RoyalFlush Information Network falling by over 14%. Semiconductor chip stocks continued to decline, with the photovoltaic, defense, real estate, and pharmaceutical sectors leading the decline. On the rise, AI applications once again showed strength, with Sora Concept, Zhipu AI, gaming, and education leading the way. Consumer electronics, railways, and highways were among the sectors with the largest gains. In terms of main funds, funds favored industries such as advertising marketing, communication services, education, railways, and highways, while funds fled from industries such as semiconductors, software development, securities, and IT services. Institutional Views CICC: Mid-term fund influence should not be ignored CICC pointed out that looking ahead, A-shares are currently in a historically active state, with new investors and margin trading being the main sources of incremental funds recently. Data indicates that institutional investors have generally not significantly increased their positions during the recent uptrend, so the market may have good absorption capacity from a fund perspective, which is expected to support a volatile uptrend. However, considering the significant accumulative gains in the previous period, the major indices are approaching previous highs and trading-intensive areas, and the small and medium cap indices have mostly hit new highs in this round of the market. With some external pressure, isolated profit-taking by funds may lead to index fluctuations in the short term, which is a normal phenomenon during a period of consolidation and volatility, but it does not change the medium-term trend. Looking ahead, after policy expectations reverse, attention should be paid to the transmission of policy implementation to improve the fundamentals. EB SECURITIES: Funds may switch between high and low positions to find new themes at relatively low levels EB SECURITIES stated that some profits were taken by funds on Thursday, leading to a widespread decline in high and strong stocks, dragging down the entire market for adjustment following the trend. Looking ahead, after another widespread decline, market sentiment has cooled slightly, especially in high and strong stocks, which have seen a clear retreat. The market may need some time to absorb the selling pressure of high and strong stocks in the next phase. Additionally, in terms of market style, funds may switch between high and low positions to find new themes at relatively low levels. Popular Sectors 1. AI application end strengthens again AI application concepts including Sora, Zhipu AI, cultural media, education, and gaming strengthened again. Sinodata Co., Ltd. rose for 5 consecutive days, while FS Development Investment Holdings, Nanxing Machinery, Tianyu Digital Technology, among others, hit their daily limit. Review: There are mainly two catalytic factors: first, reflecting the US stock market trend, the stock price of the US AI advertising company AppLovin rose by 72% over two trading days after its performance. Second, the diverse development of AI applications at home and abroad, with ByteDance releasing its self-developed video generation model Seaweed to users. Open source securities pointed out that the continuous improvement of large model inference, search, video generation, and other multimodal capabilities at home and abroad may continue to drive growth in AI application users and open up commercial space, further expanding the layout of AI applications. 2. Consumer electronics sectors rise and fall Consumer electronics concept stocks rose and fell, with Dongguan Aohai Technology hitting its daily limit. Risuntek Inc, Edifier Technology, Cosonic Intelligent Technologies, Jiangxi Firstar Panel Technology, YingTong Telecommunication, among others, followed the trend. Review: CICC states that intelligence is the main direction of industrial innovation, and suggests focusing on opportunities for hardware upgrades brought by AI technology to smartphones, AR/VR, PCs, and other terminals, as well as paying attention to the upgrading of hardware-driven demand. This article is reprinted from "Tencent Stock Selection", GMTEight Editor: Huang Xiaodong.