A-share midday report | Shanghai index returned to 4000 points, ChiNext, and Shenzhen Component Index rose more than 1% Securities firms and computing power are actively deploying efforts

On November 6th, A-shares fluctuated and rose, with the Shanghai Composite Index returning to 4000 points. By the midday close, the Shanghai Composite Index rose by 0.88%, the Shenzhen Component Index rose by 1.39%, and the ChiNext Index rose by 1.39%. In terms of news, Wang Jiang, the deputy director in charge of daily work at the Central Financial Office, stated that efforts will be made to carry out the "Five Major Articles" in finance, and to support high-level scientific and technological self-reliance and the construction of a strong tech country. This will promote the healthy and stable development of the capital market. Efforts will be focused on enhancing the inclusiveness of the capital market for new business formats and technologies in the ShenZhen New Industries Biomedical Engineering sector, actively adapting to the needs of technological innovation and the growth of tech enterprises, and promoting the development of new productive forces. In terms of the market, the phosphorus chemical sector fluctuated upward, with Shenzhen Batian Ecotypic Engineering hitting the limit up, Henan Qingshuiyuan Technology, and Yunnan Yuntianhua following suit. The semiconductor sector continued to rise, with Hygon Information Technology surging by 10%, Suzhou Everbright Photonics hitting the limit up, and various other companies rising. Brokerage stocks strengthened, with Northeast nearing the limit up, and Guosen, Huatai, among others rising. The storage chip concept rose, with Winnovation Culturaltainment Development hitting 14 consecutive days of gains and Shannon Semiconductor Technology rising by over 7% to hit a new historical high. The controlled nuclear fusion sector continued its strength, with Suzhou Hailu Heavy Industry rising for the 4th consecutive day, Baoding Tianwei Baobian Electric for the 2nd consecutive day, and Wuxi Paike New Materials Technology following suit. The industrial metal sector rose, led by aluminum, with Shandong Nanshan Aluminium nearing the limit up, Jiang Su Alcha Aluminium Group, Aluminum Corporation Of China, among others rising. In terms of individual stocks, Sungrow Power Supply rose by over 2% to hit a historical high, with a market value surpassing 420 billion. On the decline were sectors such as the film and television industry and the ice and snow industry. Looking ahead, Industrial believes that the style at the end of the year may focus more on technological growth, while also being more balanced compared to the third quarter. Hot sectors: 1. The phosphorus chemical sector fluctuated upwards, with Henan Qingshuiyuan Technology, Shenzhen Batian Ecotypic Engineering hitting the limit up, and Yunnan Yuntianhua, Guangxi Yuegui Guangye Holdings, Jiangsu Chengxing Phosph-Chemicals rising. Analysis: On the news front, the performances of several chemical companies listed in the first three quarters of this year doubled. Shanghai Shenwan Wenui Securities believes that the third quarter is traditionally a downstream off-season, with high prices of chemical products falling, but the high demand for fine chemicals and other industries supporting performance. It is expected that phosphorus chemical sub-industries will see significant growth in net profits and increases in the same quarter and month. 2. Controlled nuclear fusion continues to show strength, with Suzhou Hailu Heavy Industry, Baoding Tianwei Baobian Electric hitting the limit up, China XD Electric, Wuxi Paike New Materials Technology, Suzhou Everbright Photonics among others rising. Analysis: EB SECURITIES pointed out that the controlled nuclear fusion industry is now in a stage of capital expenditure expansion, and many high-value links have high technological barriers. Along with progress in project bidding, core companies in the industrial chain will benefit deeply. It is optimistic about companies directly involved in project construction and those that are leaders in the chain, as well as companies with high-value links and high technological barriers. 3. The storage chip concept rose, with Winnovation Culturaltainment Development hitting 14 consecutive days of gains, Shannon Semiconductor Technology rising nearly 6% to hit a new historical high, and Wuxi Taiji Industry, Shenzhen Techwinsemi Technology, Shenzhen Longsys Electronics, Nanjing Sunlord Electronics Corporation LTD. among others rising. Analysis: On the news front, on November 5th, SK Hynix stated that it had completed price and quantity negotiations with NVIDIA on the supply of HBM4 next year. An individual familiar with SK Hynix said, "The supply price of HBM4 will be more than 50% higher than that of HBM3E." Overnight in the US stock market, the storage sector saw a big rise, with Seagate Technology and SanDisk both rising by over 10% on Wednesday, Micron Technology rising nearly 9%, and Western Digital rising by over 5%. Institutional viewpoints: 1. Cinda: Style shifting may become stronger, focus on low-value sectors Cinda believes that the third-quarter report for 2025 shows that active equity-based funds are further concentrating on high-growth themes. In terms of allocation, style shifting may become stronger, focusing on low-value sectors, with banks possibly benefiting from the style shift rebounding, non-bank financial entities gradually increasing elasticity, focusing on low-value areas in the power equipment and AI application terminals, and cyclic stocks (steel, coal, building materials) may also show resilience within the next six months. 2. Industrial: The end of the year may see a more balanced style compared to the third quarter, focusing on technology and low-value cyclic sectors. Industrial believes that the interpretation of the wheel's end-year market performance is essentially the market actively seeking clues about future prosperity, based on expectations of future prosperity, and re-evaluating various industries. Therefore, the key lies not in the "stock price position", but in the "stock price-prosperity expectation match". At present, the advantageous trend of new energy with technology and high-end manufacturing as representatives is still continuing to unleash, and under the industrial trend, it will remain a focal point for the exploration of prosperity next year. At the same time, under policies such as "anti-internal competition", more highlights are gradually emerging in the cyclical direction. With the efforts of stable growth policies and internal demand repair next year, more directions are likely to confirm marginal improvement trends, providing valuation recovery space. Hence, the end of this year may be dominated by technological growth, while being more balanced than the third quarter. 3. EB SECURITIES: The index may continue its rebound, focusing on the humanoid Siasun Robot&Automation concept. EB SECURITIES believes that in the background of a general decline in overseas markets, A-shares showed a low open and high close with a bullish candlestick pattern, which significantly boosted market sentiment and confidence, potentially attracting more funds into the market. The index may continue its rebound. Investment focus should be on the humanoid Siasun Robot&Automation concept. Tesla's 2025 shareholder meeting is scheduled for November 6th, and Optimus Siasun Robot&Automation is one of the market's focuses, with expectations of new disclosures that might stimulate related concepts.