Stock market midday report: All three major indexes have turned red, with over 4300 stocks rising. The collective direction of AI applications is strengthening.

eAIAAI On November 20, A-shares opened lower in the morning and rose during the day, with all three major indexes turning red. Over 4300 stocks were in the green. At the close, the Shanghai Composite Index rose by 0.55%, the Shenzhen Component Index rose by 0.77%, and the Growth Enterprise Index rose by 0.59%. In terms of market performance, the chemical industry sector was strong, with phosphorus chemicals, fertilizers, and other sectors leading the gains. AI applications such as AI e-commerce, AI advertising, games, media, and Sora rebounded, and the Siasun Robot & Automation industry chain continued to be strong. Innovative drugs, new industrialization, and other sectors performed well. On the flip side, insurance, banks, and photovoltaic sectors experienced declines. In terms of main funds, funds favored agricultural chemicals, communication services, and chemical pharmaceutical industries, while funds flowed out from computer equipment, semiconductors, and securities industries. Institutions' views: Looking ahead, Huatai pointed out that after recent adjustments, overall risks have somewhat subsided. EB SECURITIES: The market is expected to mainly see a structural rally EB SECURITIES stated that after continuous adjustments, the Shanghai Composite Index fell below 3300 points on Tuesday but attracted bottom-fishing funds to enter again, leading to a broad-based rebound in the market. Looking ahead, after the rebound in the market, market sentiment has significantly improved, and the market is expected to gradually stabilize and recover. Considering the decrease in trading volume, the market is expected to mainly see a structural rally. Huatai: After recent adjustments, overall risks have somewhat subsided Huatai stated that since touching 3509 points on November 8, the Shanghai Composite Index has shown a trend of oscillation and retracement. Currently, the short-term retracement is still considered a benign adjustment, with a cooling-off of speculative funds and external factors disturbing market risk preferences in the short term. After recent adjustments, overall risks have somewhat subsided. There is no need to be overly concerned about the short-term adjustments in the market, and it is worth observing how well the Shanghai Composite Index holds near the 30-day moving average. As the end of the year approaches, the market will focus on important meetings such as the Central Economic Work Conference. In addition, the period of policy game has not ended, and the pace of monetary policy reserve requirement ratio cuts and interest rate cuts is also closely watched. Before the end of the year, the market is expected to have a possibility of another reserve requirement ratio cut. Guorong Securities: The market continues to have ample upward space, small-cap stocks and dividend styles are currently favored Guorong Securities pointed out that on Tuesday, the market rebounded after a low-volume bottoming out, with the index returning above the 30-day moving average, continuing its upward trend. The growth sector rebounded rapidly at the end of the day, effectively restoring investor confidence. The end of the consecutive declines allowed investors to maintain a bullish expectation for the market. In the short term, the index may continue to oscillate and repeat, focusing on structural opportunities following hot thematic topics. In the long term, the market continues to have ample upward space, with small-cap stocks and dividend styles currently favored, focusing on structural opportunities in the growth direction. Popular sectors: 1. The phosphorus chemical sector is on the rise The phosphorus chemical sector continued to rise, with Kunming Chuan Jin Nuo Chemical, Henan Qingshuiyuan Technology rising by 20%, Anhui Liuguo Chemical, Guangxi Yuegui Guangye Holdings, Anhui Huilong Agricultural Means of Production all reaching the limit up. Anhui Sierte Fertilizer Industry, Hubei Xingfa Chemicals Group, Luxi Chemical Group, Hubei Yihua Chemical Industry, and others followed suit. Review: On the news front, more than a dozen leading chemical companies at home and abroad have announced price increases. Guotai Junan's research report mentioned that in the fourth quarter of 2024 and the next two years, in the short term, although the "Golden September, Silver October" peak season for the basic chemical industry in 2024 was not strong, the industry with rigid supply still showed strong profit resilience, and the chemical industry sub-industry chain may see a valuation regression. 2. The Siasun Robot & Automation industry chain is strong The Siasun Robot & Automation industry chain continued to strengthen, with Csg Smart Science & Technology hitting the 20% limit up for two consecutive days, followed by Keli Sensing Technology, Hangzhou Youngsun Intelligent Equipment, Jinggong Technology, Aishida Co., Ltd., Shanghai Tianyong Engineering, and other stocks hitting the limit up. Review: On the news front, with companies like Huawei and Contemporary Amperex Technology expanding their layouts, and local policies being introduced successively, Siasun Robot & Automation in China is accelerating industrialization. Open Source Securities believes that Huawei has capabilities similar to Tesla and has already made moves in the field of Siasun Robot & Automation, with software advantages in artificial intelligence, large models, and external conditions for achieving collaborative vehicle-machine interaction, possessing core competitive advantages in developing the humanoid Siasun Robot & Automation industry. 3. Rebound in AI application direction The AI application direction rebounded, with AI e-commerce, AI advertising, media, games, Sora, and other areas leading the gains. Nanji E-Commerce, Guangbo Group Stock, Guangzhou Daily Media in Guangdong, Hengxin Shambala Culture, CCS Supply Chain Management, and other stocks hit the limit up. Review: On the news front, as of the local time on November 20, U.S. AI e-commerce concept stocks such as AppLove and AI application stocks such as NeiTian Technology were generally strong, driving the performance of related sectors in A-shares. The application of AI in various fields is gradually expanding, and the market's enthusiasm for this direction is increasing.The cumulative increase within the year reached as high as 706%. Opensource Securities pointed out that the continuous improvement of large-scale model reasoning, search, video generation, and other multimodal capabilities at home and abroad in recent times may continue to help increase the user base of AI applications and open up commercial space, continuing to layout AI applications.This article is reprinted from "Tencent Stock Selection"; GMTEight Editor: Wang Qiujia.