A-share market opens with a quick update | A-shares fluctuate and rise with the Growth Enterprise Board index up over 2%! CPO and other computing power hardware stocks rebound.

On October 20, the A-shares rebounded in the morning, with the Shanghai Composite Index up 0.65% and the Shenzhen Component Index up 1.38% as of 9:31 am. The ChiNext Index rose 2.23%. In terms of market performance, the coal sector continued its strong performance from last week, with Henan Dayou Energy up 6 boards in 7 days; mining hardware stocks such as CPO rebounded, with Zhongji Innolight up more than 6%; the satellite navigation sector rose, with Chengdu Spaceon Electronics and Beijing StarNet Technology both hitting the limit up. On the downside, precious metals, banks, and industrial metals sectors were in the red. Looking ahead, Zhongtai believes that a combination of policy factors and fundamentals is expected to boost market confidence and recommends continuing to focus on the two main themes of non-ferrous metals and technology growth. Top-performing sectors: 1. Coal sector continues to perform well The coal sector continued its strong performance from last week, with Henan Dayou Energy up 6 boards in 7 days. Companies such as Pingdingshan Tianan Coal. Mining Co., Ltd., Shanxi Lu'an Environmental Energy Development Co., Ltd., Shanxi Coking Coal Energy Group, Jinneng Holding Shanxi Coal Industry, and Shan Xi Hua Yang Group New Energy followed the upward trend. Institutional views: 1. Industrial: Focus on internal certainty Industrial believes that the moment of greatest overseas disruption may be passing, with positive factors such as the upcoming Federal Reserve interest rate meeting and APEC summit. Domestically, with the upcoming Fourth Plenary Session of the 20th CPC Central Committee and verification of third-quarter economic data, the market consensus on economic trends is expected to once again come together. The focus should remain on internal certainty, with a core focus on economic and industry trends. Attention should be given to defense industry, domestically produced computing power industry chains, innovative drugs, North American computing power chains, gaming, and battery sectors. 2. Zhongtai: Multiple factors intertwine to boost market confidence Zhongtai believes that the Fourth Plenary Session of the 20th CPC Central Committee, to be held from October 20 to 23, may emphasize technological innovation and industrial upgrading for the next five years. With the intensification of third-quarter earnings reports, corporate profits are gradually becoming clearer. With multiple factors at play, funds on the sidelines may re-enter the market, leading to increased trading volume and an end to the previous days of low turnover. The recommendation is to continue focusing on the two main themes of non-ferrous metals and technology growth. 3. Orient: This week may test the 3800-point level Orient believes that technically, last Friday's bearish candle pierced through short-term and medium-term moving averages, indicating a further test of the 3800-point level this week. However, in the medium term, the market is still within the broad consolidation range of "3700-3900 points". From a strategic perspective, assets such as coal, banks, and utilities will receive market attention, while the technology sector may offer buying opportunities after a pullback. This article is reproduced from "Tencent Stock Selection". Editor: Jiang Yuanhua.