A-share market review: Shanghai index fell below 4000 points, both ChiNext and STAR Market experienced a significant drop! "Map market" was active against the trend.

On November 14th, the three major indexes collectively adjusted. By the end of the trading day, the Shanghai Composite Index fell by 0.97%, the Shenzhen Component Index fell by 1.93%, and the ChiNext Index fell by 2.82%. Over 2800 stocks rose in the two markets. Today, the Asia-Pacific markets collectively declined, with the Japanese and South Korean stock markets falling. The Nikkei 225 Index fell by 1.77%, and the KOSPI Index fell by 3.82%. According to Securities Times, the possibility that the U.S. market's three-pronged attack on stocks, bonds, and currencies last night may be the main reason for the collapse in the Asia-Pacific markets. The "black swan" that triggered a huge shock in the U.S. capital markets was the collective counterattack by Federal Reserve officials. In a situation where employment data is significantly weakening and inflation is not under significant pressure, several Fed officials have been putting forward hawkish views, firmly defending the independence of the 2% inflation target, and sharply reducing the probability of a rate cut. On the market, the "map" trading trend is hot, the Fujian sector is active, with Zhongfu Straits hitting the limit up again. The Hainan Free Trade Zone sector led the market with Haima Automobile, Hainan Haiyao, and Xinlong Holding leading the gains, and Honz Pharmaceutical following suit. Dividend assets were once again active, with the banking sector bucking the trend to protect the market, as the five major banks - Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank Corporation, and BANKCOMM - all saw significant gains, with ICBC and ABC hitting new highs during the trading day. The pharmaceutical and commercial sector has been active for several days, with Shu Yu Civilian Pharmacy Corp., Ltd. hitting the 20cm limit up, HPGC Renmintongtai Pharmaceutical Corporation rising for the fifth consecutive day, and Shanghai Kai Kai Industrial, Anhui Huaren Health Pharmaceutical and others following suit. Gas stocks surged against the trend, with Shandong Shengli hitting its fourth consecutive limit up, while Changchun Gas, Sino Prima Gas Technology, and others rose one after another. The oil and gas extraction sector fluctuated higher, with Sino Prima Gas Technology leading the way and Zhongman Petroleum and Natural Gas Group Corp., Ltd. and Geo-Jade Petroleum Corporation following suit. The photovoltaic industry chain continues to be active, with Clenergy Technology and others hitting the limit up. In terms of declines, technology stocks fell collectively. HBM and storage chip concepts led the market lower, with Biwin Storage Technology falling by more than 10%. AI hardware concepts such as optical modules, PCB, and NVIDIA continued to decline, while lithium battery concepts such as fluorine chemical, electrolyte, and lithium hexafluorophosphate all experienced a pullback. Looking ahead, China Galaxy Securities believes that the current technology theme continues to adjust. While some thematic trends rebounded this week, the sustainability remains insufficient. The market may still be dominated by a fluctuation structure, as it is preparing for a new upward trend. Highlighted Sectors: 1. Hainan Free Trade Zone sector strengthens The Hainan Free Trade Zone sector strengthened again, with Hainan Haiyao, Xinlong Holding hitting the limit up, and Honz Pharmaceutical following suit. Analysis: On the news front, as the closure of Hainan approaches, policy benefits are gradually being released. An article from the Ministry of Transport stated that the "zero tariff" policy of the Hainan Free Trade Port benefits both air, land, and sea vehicles. The policy benefits not only airplanes but also ships, yachts, multi-functional passenger vehicles, and other areas, achieving full coverage of goods enjoyed in the sea, land, and air. 2. Gas stocks are active against the trend Gas stocks are strengthening against the trend, with Shandong Shengli hitting its fourth consecutive limit up, while companies like Changchun Gas, Sino Prima Gas Technology, Shanghai Dazhong Public Utilities, and Kaitian Gas all rose. Analysis: Starting from today until the 17th, the first cold wave of the second half of the year is approaching, with local temperatures dropping by more than 12C. After the cooling, temperatures will hit new lows in the second half of the year. A Huatai report indicates that AI data centers are driving electricity demand, and gas turbines are considered a quality choice to meet the growing demand. Global gas turbine sales/orders are poised to continue to grow, with clear plans for capacity expansion by manufacturers. 3. Photovoltaic sector rises The photovoltaic industry chain remains active, with gains expanding in the afternoon. Clenergy Technology hit the limit up, and companies like Arctech Solar Holding and Sineng Electric saw significant gains. Analysis: On the news front, the photovoltaic industry continues to receive positive developments, with the National Energy Administration issuing guidance on promoting the integrated development of new energy sources. The China Photovoltaic Industry Association and JA Solar Technology recently refuted rumors of hoarding and freezing. CITIC Securities pointed out that the photovoltaic industry, which is facing issues of homogenized low-price competition and temporary excess capacity, is at the core of this round of "anti-internal friction." It is recommended to focus on leading companies with long-term competitiveness and resilience in terms of price and volume recovery. Institutional Views: 1. Debon Securities: The market is expected to continue to trend upward with balanced allocations to dividend assets, micro-plates, etc. Debon Securities believes that the market is likely to continue to trend upwards in the future, and recommends balanced allocations to dividend assets, micro-plates, and industry trend sectors. The long-term outlook for the technology sector is positive, with a focus on policy drivers and international bulk commodity prices. In the short term, the style may continue to revolve around the dual themes of "new energy growth + cyclical resources." It is recommended to maintain a comprehensive allocation strategy. If the market continues to trend upward in a choppy manner, then technology and new energy-related sectors can be further monitored, while defensive sectors such as banks may be weaker in the short term but still have allocation value due to their dividend characteristics. 2. China Galaxy Securities: The market is preparing for a new upward trend The current technology theme continues to adjust, with some thematic trends showing signs of rebound this week but with insufficient sustainability. The market may continue to be dominated by a fluctuation structure, so it is important to pay attention to the value of adjusted allocations. The rotation of hotspots in the market is expected to be rapid in the environment of policy and performance gaps, with themes such as grid equipment, lithium batteries, and chemicals leading the rotation and reflecting the gradual confirmation of the "anti-internal friction" theme as the logic behind the rise in prices boosts medium-term expectations for economic improvement. In the sector rotation market, hidden themes may emerge as the end-of-year market unfolds. The market is preparing for a new upward trend. As the pace of policy implementation becomes clearer, the logic of sectors related to "anti-internal friction" is clear, and the technology theme's industry trends and performance are entering a validation stage, the long-term upward trend of the A-share market remains unchanged. Allocation opportunities: Focus on themes such as "anti-internal friction" and dividends in the sector rotation market, and technology themes focusing on supplementary growth segments and industrial trends. 3. Guotai Haitong: A-share stock indices are not expected to undergo significant adjustments; the market is highly likely to exceed expectations by 2026 Guotai Haitong's chief strategist believes that the A-share stock indices are not expected to undergo significant adjustments at present, and the market is highly likely to exceed expectations by 2026. This is due to three major factors: the decline in risk-free interest rates, capital market reforms, and increased certainty in China's transformation and development. The introduction of foundation reforms beginning with the new "state's nine points" will greatly enhance the investability of the Chinese market, bringing in medium to long-term capital and constructing stable market mechanisms that will significantly improve China's ability to respond to risks and fluctuations. The increased certainty in China's transformation and development will drive capital spending expansion, with new technologies and emerging industries leading the way, as Chinese manufacturing enters a period of global development. Investment opportunities are seen in technology growth, manufacturing going global, expansions, and cyclical sectors such as Hong Kong-listed Internet companies, Siasun Robot&Automation, chips, semiconductors, consumer electronics, automobiles and components, innovative pharmaceuticals, nonferrous metals, and chemicals. This article is a reprint from "Tencent Stock Selection," GMTEight Editor: Chen Xiaoyi.