A-share market closing review | A-share market volume surged, three major indexes all closed in red! The Shanghai Composite Index continues to hit a new 10-year high.

On November 13, the three major indexes opened lower and then trended higher, ending the day in positive territory, with the Shanghai Composite Index continuing to rise in the afternoon to set a new 10-year high. Over 3900 individual stocks posted gains, with a total of 106 stocks hitting their daily limit. By the close, the Shanghai Composite Index was up 0.73%, the Shenzhen Component Index rose 1.78%, and the ChiNext Index increased by 2.55%. Recently, the Shanghai Composite Index has been fluctuating around the 4000-point mark, with sector rotations speeding up. As the year-end approaches, several securities firms have released their annual investment strategies for 2026. Overall, the performance of A-shares next year is still actively favored by institutions. CITIC SEC stated that China's capital market is gradually transforming into a mature market, and during the "Fifteenth Five-Year Plan" period, A-share market trends are expected to move towards a low-volatility "slow bull" market. On the market front, there is a strong willingness to go long on funds, with heavyweight stocks showing strong gains and thematic concepts strengthening across the board. Concepts related to lithium batteries such as solid-state batteries, lithium hexafluorophosphate, electrolytes, and lithium resources surged, with Sunvim Group hitting a streak of six limit-up days, Jiangsu HSC New Energy Materials hitting the limit-up, and Contemporary Amperex Technology rising by over 7%. The energy metal sector also rose, with YOUNGY Co., Ltd. hitting the limit-up, and Chengxin Lithium Group, Yongxing Special Materials Technology, and others following suit. The gold and precious metals concepts also saw strong gains, with Chengtun Mining Group hitting the limit-up, and Guocheng Mining, Henan Yuguang Gold & Lead surging. Photovoltaics strengthened again, with active trading in the organic silicon concept stocks, as companies like Henan Hengxing Science & Technology and Shandong Dongyue Silicone Material led the gains. The commercial aerospace sector also rose, with Shanghai Hugong Electric Group hitting the limit-up. The semiconductor sector continued its strength, with Shenzhen Longsys Electronics reaching a new high during trading and Biwin Storage Technology rising by over 10%. Concepts such as nuclear fusion, consumer electronics, defense industry, and new energy vehicles all trended upward. In terms of decline, sectors such as banking, insurance, and oil and gas dividends collectively experienced a pullback. Looking ahead, Shenwan Hongyuan Group believes that the bull market still has depth, and as time passes, the conditions for a comprehensive bull market will become more adequate. The spring of 2026 may be a time for a temporary peak, but it is most likely not the peak for the whole year, nor for this round of the comprehensive bull market. Hot sectors: 1. The explosion of the lithium battery concept The lithium battery concept exploded, with upstream material electrolytes experiencing significant gains. Companies in this sector such as Jiangsu HSC New Energy Materials reached their limit-up and set new highs. Comment: Due to the demand for lithium batteries in energy storage, the prices of additives VC (ethylene carbonate) and FEC (fluoroethylene carbonate) have continued to rise. CMSC mentioned that stocks of some top electrolyte and battery factories have bottomed out in VC. In the past two years, the downstream energy storage market for lithium batteries has exceeded expectations, and VC has shown significant improvements in the long-term cycling performance of batteries, indicating a potential for further price increase. 2. The resurgence of the photovoltaic sector The photovoltaic sector rebounded strongly, with the organic silicon concept continuing to rise in the afternoon. Companies like Hoshine Silicon Industry hit the limit-up, while Shandong Dongyue Silicone Material and Jiangxi Chenguang New Materials also surged. Comment: With the National Energy Administration issuing guidance on promoting the integrated development of new energy, and the China Photovoltaic Industry Association and JA Solar Technology recently refuting rumors, the industry is believed to be the core territory for this round of "anti-collusion." It is recommended to focus on leading companies with sustainable competitiveness and potential for rebounding prices under the context of "anti-collusion" in the photovoltaic sector. 3. Strength in precious metals Comment: On November 12th, international precious metal futures generally rose, with COMEX gold futures up 2.07% to $4201.4 per ounce. Zhongtai stated that the precious metal market had already undergone adjustment, showing strong momentum for price rebound. With interest rate cuts expected, ETF funds are expected to continue flowing in, and together with central bank gold purchases, they have boosted gold prices, benefiting gold stocks. Institutional views: 1. Shenwan Hongyuan Group: A-shares are still in a volatile market, the spring of 2026 might be a temporary peak Shenwan Hongyuan Group believes that the long-term upward trend of technology growth lacks cost-effectiveness, with short-term fundamental concerns increasing. Short-term cyclic products with price increases lack cost-effectiveness, and there are logical breakpoints in the medium term. The structure that could lead the market breakthrough has yet to be established, and A-shares may continue to be volatile overall. Spring 2026 might be a temporary peak, but it is highly unlikely to be the peak for the whole year or this round of the comprehensive bull market. As time goes on, the conditions for a comprehensive bull market will become more adequate. With supply clearing, the framework of the effectiveness of the "policy bottom, market bottom, and economic bottom" of A-shares in 2026 are expected to return. When China intensifies its easing policies in 2026, it could be the moment when the bull market 2.0 starts. 2. Central China: There is a high chance of consolidation around the 4000-point mark for the Shanghai Composite Index Central China believes that the A-share market is currently at a crucial turning point, with a high probability of consolidation around the 4000-point mark for the Shanghai Composite Index. Market styles are expected to continue rebalancing, with cycles and technology likely taking turns to perform, and structural opportunities should be seized. It is predicted that the short-term market will mainly see steady and oscillating upward trends. 3. EB SECURITIES: The market is currently in a policy vacuum period, with strong expectations for December policies EB SECURITIES believes that as the year-end approaches, emotions for locking in profits in the market are rising, leading to some funds taking the opportunity to realize gains and causing certain high-priced stocks to plummet, dragging down the indexes. Looking ahead, the market is currently in a policy vacuum period, with strong expectations for December policies. While there are disagreements among funds, the outlook is not pessimistic, and the indexes are expected to continue the trend of oscillating upward. Promising sectors include photovoltaics, controlled nuclear fusion, and others. This article was reprinted from "Tencent's Self-selected Stocks", Edited by GMTEight: Jiang Yuanhua.