A-share market opening express | divergence in index trends, military industry sector strengthens against the trend, multiple stocks hit the limit up in a straight line

On November 17th, the three major indexes fluctuated weakly. As of 9:43, the Shanghai Composite Index fell by 0.4%, the Shenzhen Component Index rose by 0.16%, and the ChiNext Index rose by 0.18%. In terms of the market, the military equipment sector saw a significant increase, with Anhui Greatwall Military Industry hitting the limit up, and Jianglong Shipbuilding, North Long Dragon New Materials Tech, SHENGNAN TECHNOLOGY, among others, following the trend. The aquaculture sector was active, with Zhanjiang Guolian Aquatic Products hitting the limit up by 20%, and Dahu Health Industry, Cnfc Overseas Fisheries, among others, also hitting the limit up. The lithium battery sector saw another rise, with activity in the energy metals sector, as Chengxin Lithium Group hit the limit up, and YOUNGY Co.,Ltd., Tianqi Lithium Corporation, Ganfeng Lithium Group followed suit. The storage chip sector saw a fluctuation and increase, with Biwin Storage Technology rising by over 10%, and Puya Semiconductor (Shanghai) Co., Ltd., Thinkon Semiconductor Jinzhou Corp. following suit. In terms of individual stocks, Contemporary Amperex Technology fell by over 4%, as the company's significant shareholder and co-founder Huang Shilin plans to sell 45.63 million shares, accounting for 1% of the total share capital, through inquiry transfer due to personal fund needs. In terms of declines, the precious metals, pharmaceutical commerce, airport transportation, and other sectors saw the largest declines. Looking ahead, Huaan believes that the market's internal cooling and the trend of high cutting and low present will continue to be prominent. This situation is expected to continue until the expected trading before the Central Economic Work Conference. There is more rotation in the short term, but it is difficult to grasp the rhythm. Adjustment in the AI industry will provide better opportunities for layout. Areas with performance support should also be valued, including energy storage/batteries. Popular Sectors 1. The military equipment sector is strong The military equipment sector is strong, with Anhui Greatwall Military Industry hitting the limit up, and Jianglong Shipbuilding, North Long Dragon New Materials Tech, among others, seeing significant gains. 2. The lithium battery sector is strong again The lithium sector saw another rise, with Chengxin Lithium Group hitting the limit up, and YOUNGY Co.,Ltd., Tianqi Lithium Corporation, Ganfeng Lithium Group following suit. Market Outlook according to Analysts 1. China Securities Co., Ltd.: A-share sentiment index at a high level drops, bullish on electricity, basic chemicals, and other sectors. The A-share sentiment index is dropping from a high level, while the Hong Kong stock market sentiment index is rising. The VIX of the Shanghai 50, the CSI 300, the CSI 500, and the CSI 1000 is decreasing. Based on the Hong Kong stock market sentiment index threshold timing strategy for the Hang Seng Index is long. Institutions are focusing on basic chemicals, national defense and military industry, automobiles, textiles and apparel, non-banking finance, and media industries, while the attention on the communication industry is decreasing from a high level. The institutional focus on the "petroleum and petrochemical" industry, "coal," "steel," "light industry manufacturing," and "non-banking finance" has been increasing in the past week. Many industries are currently in a state of triggering crowded indicators (liquidity, consistency of constituent stocks). In November 2025, bullish on the relative returns of electricity and utilities, basic chemicals, power equipment and new energy, electronics, and computers. The VIX for gold, silver, copper, and crude oil is rising, and the long-term outlook for gold is still bullish. Current Configuration: Electricity and utilities, basic chemicals, power equipment and new energy, electronics, and computers. 2. Huaan: Market enters high-level fluctuation, AI industry adjustment provides good opportunities for layout Since early October, the market has entered a high-level fluctuation, with a noticeable increase in industry rotation intensity. Last week, the consumer goods industry saw overall gains, while the resource sector previously saw gains. The rotation speed and intensity have increased significantly since mid-October. Looking at industries with the largest gains and valuation percentile arrays from October to now, primary industries like non-banking, food and beverage, agriculture, utilities, and home appliances, and secondary industries like flavor fermentation products, non-white liquor, aquaculture, medical services, naval equipment, and securities, are still in the undervalued and sluggish upward direction. These areas are expected to experience short-term upsides, but it should be noted that the difficulty of grasping industries during rotation periods has increased sharply. In the current configuration, the internal cooling and high cutting and low present trend continue to be prominent. This situation is expected to continue until the expected trading before the Central Economic Work Conference. There is more rotation in the short term, but it is difficult to grasp the rhythm. The adjustment in the AI industry provides better opportunities for layout while areas with performance support should also be emphasized, including energy storage/batteries, military industry, storage, engineering machinery, etc. 3. CMSC: The market is expected to continue showing rotation between technology and cyclical sectors Domestically, as financial aggregate indicators gradually decline, the logic driven by macro liquidity will weaken marginally, but this does not mean the end of the market. Looking ahead, the market is expected to continue showing rotation between technology and cyclical sectors. Overseas, the restoration of market risk preference will depend on the economic data accumulated due to the government shutdown and statements from the Federal Reserve and figures like Trump, and there is a need for a signal to reduce the uncertainty of expectations. Additionally, if US stocks further decline, it may force the Federal Reserve or Trump to release some dovish voices to maintain market stability. Focus on sectors with relatively high or improving prosperity such as non-ferrous metals, coal, building materials, batteries, inverters, storage devices, PCB, etc. This article was originally published on "Tencent Stock Selection." GMTEight Editor: Li Fo.