A-share market closing review | Three major indices all closed in red with a surge in electricity stocks! Reasons behind the rise revealed.

Today, the A-share market opened low and then rose, unaffected by the sharp drop in overseas markets, with all three major indexes closing in the red. Electric grid equipment and Hainan Free Trade Zone concepts were strong throughout the day, while the photovoltaic and battery sectors continued to rise in the afternoon. The total market turnover for the day was nearly 1.9 trillion, lower than the previous trading day, with over 3300 stocks in both markets rising. Analysts believe that the collective impact of three major positive factors is an important reason for the relative strength of A-shares. First, in October 2025, China's warehousing index was 50.6%, up 1 percentage point from the previous month, showing stable economic vitality. Second, according to the announcement by the central bank on November 4th, medium-term market liquidity continues to be released. Third, hot concept sectors remain active, with the Hainan sector once again surging and the Fujian sector showing abnormal movements. Only with active hotspots can market sentiment be maintained. On the market, the electric power sector skyrocketed, with electric grid and energy storage concepts surging, and multiple stocks like Baoding Tianwei Baobian Electric, SHINING ELECTRIC, Smartgen, and Shanghai Morn Electric Equipment hitting the daily limit. In terms of news, under the dual wave of global energy transition and digital transformation, artificial intelligence (AI) technology is deeply integrating into the power industry. Microsoft CEO Satya Nadella stated in an interview with OpenAI CEO Sam Altman that the current problem facing the artificial intelligence industry is not an excess of computing power but a lack of sufficient power to support all running GPUs. Furthermore, the Hainan Free Trade Zone concept remained strong throughout the day. Stocks like Hainan Jinpan Smart Technology, Honz Pharmaceutical, Caissa Tosun Development, and Haima Automobile hit the daily limit; the duty-free shop concept was active, with Hainan Development Holdings Nanhai hitting the limit and Fujian Dongbai, China Tourism Group Duty Free Corporation following suit. In terms of news, two positive factors continue to ferment - the "14th Five-Year" plan suggested implementing strategies to enhance free trade zones and building a high-standard Hainan free trade port. In addition, according to Xinhua News Agency, data from Haikou Customs showed that on the first day of the new duty-free policy in Hainan, the amount of duty-free shopping was 78.549 million yuan, a 6.1% increase from the day before the policy was implemented, demonstrating the initial impact of the policy. In other hot areas, the photovoltaic equipment sector continued to rise in the afternoon, with Jiangsu Tongrun Equipment Technology hitting the limit and CSI Solar Co., Ltd. rising by over 10%; the coal mining and processing sector was active, with Shanxi Antai Group hitting the limit for 9 consecutive days and Baotailong New Materials hitting the limit. On the downside, software development, semiconductor, and medical services sectors led the declines. Looking ahead, Soochow believes that with the expectation of a style switch, a balanced allocation is recommended in the short term to deal with market volatility during the style switch period; in the medium to long term, the trend of technology growth has not ended, and still holds continuous value for investment. In terms of individual stocks, 3380 stocks rose in both markets, while 1905 stocks fell, with 161 stocks remaining unchanged. There were 83 stocks that hit the daily limit and 9 stocks that hit the downside limit. At the close, the Shanghai Composite Index rose by 0.23% to 3969.25 points, with a turnover of 827.1 billion yuan; the Shenzhen Component Index rose by 0.37% to 13223.56 points, with a turnover of 104.52 billion yuan. The ChiNext Index rose by 1.03% to 3166.23 points. Capital flows: Today, the main funds focused on grabbing the electric grid equipment, battery, and photovoltaic sectors, with key stocks that saw a net inflow of main funds including Sungrow Power Supply, TBEA Co., Ltd., Contemporary Amperex Technology, etc. News recap: 1. Tariff Commission of the State Council: Adjusting the imposition of tariffs on imported goods from the United States In order to implement the consensus reached in the China-US economic and trade negotiations, the Tariff Commission of the State Council issued a public announcement regarding the suspension of the imposition of tariffs on certain imported goods from the United States. It was pointed out that starting from 1:01 p.m. on November 10, 2025, the tariff rate on imports from the United States, which was originally set to be imposed according to the "Announcement of the Tariff Commission of the State Council on the Imposition of Additional Tariffs on Imported Goods from the United States," will continue to be temporarily suspended at 24% within one year, while the 10% tariff rate will be retained. 2. Yushu Technology's chairman, Wang Xingxing: It is expected that the average growth rate of a single enterprise in the domestic intelligent Siasun Robot & Automation sector this year will be between 50% to 100% Wang Xingxing, the founder and chairman of Yushu Technology Co., Ltd., stated at the 8th Hongqiao International Economic Forum's sub-forum on "Innovation and Development Cooperation of Humanoid Siasun Robot & Automation" that under the support of policies and other factors, the development of the Siasun Robot & Automation sector has been rapid this year. He expressed his personal expectation that the average growth rate of a single enterprise in the domestic intelligent Siasun Robot & Automation sector will be between 50% to 100%. The most critical core element of the current and future Siasun Robot & Automation is the large-scale Siasun Robot & Automation model, which is currently in a development stage similar to the 1-3 years before the release of ChatGPT. 3. Beijing: Proposal to establish a special incubation fund for brain-computer interfaces to create a Brain-Computer Interface Industry Agglomeration Zone The Beijing Municipal Science and Technology Commission and the Beijing Centergate Technologies Management Committee formulated the "Several Measures to Support the High-Quality Development of the Medical and Health Industry in Changping District (Draft for Soliciting Opinions)." It mentioned that relying on imaging, processing, testing, computing, and other platform capabilities formed by the Beijing Institute of Brain Science and Brain-like Research, a special incubation fund for brain-computer interfaces would be established to create the Beijing Centergate Technologies (Changping) Brain Science and Brain-Computer Interface Industry Agglomeration Zone. Accelerating the construction of the International Medical Device City to build a high-end medical equipment innovation and high-quality development communication center and striving to build the Beijing Centergate Technologies (Changping) Intelligent Ophthalmology and Medical Industry Park with high quality. Market analysis: 1. EB SECURITIES: Market correction complies with historical laws, short-term advice leans towards balanced allocation to cope with market fluctuations during style changes EB SECURITIES believes that historically, market corrections are common during bull markets. The oscillation in the upward trend of the bull market usually occurs within the first 60-80 trading days after the opening. Additionally, historically, after forming a temporary high point in the oscillating upward trend of the bull market, allowing for a 6%-7% narrowing of the uptrend, the market typically resumes an upward trend. In terms of timing, the low point of the correction after opening in the oscillating upward trend of the bull market usually occurs around the 90th trading day after the opening. The current timing of the market's correction to an extent complies with historical laws. The market's overall direction may still be in a bull market, but in the short term, it may enter a period of wide fluctuations. 2. East Money Information: Shanghai Index continues to fluctuate around 4000 points, focusing on main themes like artificial intelligence and biotechnology East Money Information believes that recently, the Shanghai Index has continued to fluctuate around 4000 points. When the Shanghai Index surpasses the 4000-point mark, investors may feel a bit anxious, but compared to 2007 and 2015, the current A-share market valuation is more resilient, and with global loose liquidity, the market's autonomous logic has strengthened. The bull market can be divided into three stages: the first stage is improved liquidity, the second stage is increased risk appetite, and the third stage is improved fundamentals. The current market is in the second stage of the bull market, driven by increased risk appetite, and if the improvement in fundamentals spreads, it may present opportunities for the third stage. Investment-wise, the recommendation is to focus on the three major themes: artificial intelligence, biotechnology, and commodities. 3. Zheshang: The Innovation and Entrepreneurship Index is currently in a weak oscillation pattern, focusing on steel, consumption, and other sectors relative to low levels Zheshang believes that after the Shanghai Composite Index broke through 4000 points last week and then retraced, different broad-based indexes showed significant differentiation. Looking ahead, if the Shanghai Index remains above the trendline and does not fall below the previous plateau top of 3936 points, the uptrend will be maintained; the Innovation and Entrepreneurship Index is currently in a weak oscillation pattern, and its stabilization depends on the performance of key index stocks and core components. For the securities sector with lagging gains and significant upside potential, their short-term direction remains to be observed. In terms of allocation, based on the judgment that "market trend is not clear, and two signals still need to be observed," timing-wise, strategic-wise, adhere to a systematic "slow" bullish thinking and tactically-wise, maintain the current positions without increasing or reducing. This article is reprinted from Tencent's "Self-selected Stocks," GMTEight editor: Liu Jiayin.