A-share morning express | A-share collectively opens higher, Shanghai index rises by 0.05%, leading the increase in the CPO, non-ferrous metals and other sectors.

Stock A's three major stock indices collectively opened higher, with the Shanghai Composite Index up 0.05% and the ChiNext Index up 1.07%. On the market, CPO, non-ferrous metals, and copper cable high-speed connections are among the top gainers. Institutional outlook Pacific Securities: The Shanghai Composite Index briefly returned to 4000 points, breaking through the ten-year low provides a solid foundation for future higher highs Pacific Securities stated that after ten years, the Shanghai Composite Index once again reached 4000 points. Although there were intraday declines, the breakthrough of the ten-year low provides a solid foundation for the A-share market to reach new highs in the future. Any support for the index's pullback is a buying opportunity, with the Shanghai 50 index showing the most stable volume and price and being a more reliable choice. The Fourth Plenary Session of the Central Committee catalyzes the surge in the technology sector, with many star technology stocks having already hit new highs or approaching previous highs. Investors without technology positions are advised not to chase highs in volatile market conditions. Sectors such as non-ferrous metals, coal, banking, nuclear power, and defense are still at low levels. The bull market will smooth out every "low point," buying at neglected areas and selling when there is a buzz is essential to achieving excess returns. Looking ahead, the accumulation rate for technology stocks remains relatively high, currently above 35%. There is still insufficient time and space for a pullback from highs (since 2023, the time taken to pull back from highs has been around one quarter). In terms of sector selection, the previous judgment holds that compared to the high-volatility technology stocks at highs, sectors with lower volatility such as "old" forces are more likely to achieve excess returns in the fourth quarter. Industrial: The market should continue to focus on China's strategic layout for the "Fifteen-Five" Plan and prioritize AI, defense, and innovative pharmaceuticals Industrial stated that with ongoing trade negotiations between China and the US and expectations of a Fed rate cut, the most significant overseas disturbances may have passed. More importantly, the positive positioning in the "Fifteen-Five" public report boosts confidence, consolidates consensus, and strengthens the positive narrative for this round of market improvement, with a continued focus on China's strategic layout for the "Fifteen-Five" Plan. In terms of structure, after the repercussions of the previous risk-averse trading driving structural price issues have gradually dissipated, the combination of economic advantages, industrial trends, and policy support should focus on actively exploring opportunities in technology growth industries and prioritize AI, defense, and innovative pharmaceuticals. In the current AI industry chain, key areas of focus include the globally resonating overseas computing power industry chain (such as optical modules, PCB, etc.), the domestically controllable benefit from the national computing power chain (represented by GPUs, semiconductor equipment materials of domestically produced chip industry chains, and storage chip industry chains), and the middle and downstream applications with innovative potential and benefiting from market internal diffusion (Hong Kong's internet, gaming, consumer electronics, Siasun Robot & Automation, etc.). Orient: 4000 points do not mean the end of the market, the "technology bull" driven by the technological industrial revolution is slowly approaching Orient stated that overall, in the context of economic transformation, the importance of the capital market is highlighted, with favorable policies and funding, coupled with breakthroughs in the Fifteen-Five Plan industries, indicating that 4000 points do not mean the end of the market. The "technology bull" driven by the technological industrial revolution is slowly approaching. This article is reproduced from "Tencent stock selection", GMTEight editor: Feng Qiuyi.