A-share market closing review: Shanghai Composite Index fell 0.46%, Alibaba's Thousand Questions Initiative caused an uproar! AI applications strengthened against the trend.

Today, the market opened low and continued to decline, with the military equipment, lithium concept, and AI application concept sectors leading the gains. The total market turnover was about 1.9 trillion, slightly lower than the previous trading day, with over 2700 stocks falling in both markets. The lithium battery sector remained hot, with Tianqi Lithium Corporation, a billion-dollar market giant, hitting the limit up. Ningbo Ronbay New Energy Technology also rose by 20%, along with Chengxin Lithium Group, YOUNGY Co., Ltd., and Ganfeng Lithium Group. In terms of news, the recent continuous "long-term agreement" and "order locking" in the lithium battery industry chain have shown a trend of rushing to expand production capacity. Ningbo Ronbay New Energy Technology recently signed a cooperation agreement with Contemporary Amperex Technology to become the first supplier of sodium battery cathode powder for Contemporary Amperex Technology. Leading energy storage companies such as Beijing HyperStrong Technology and electrolyte supplier Guangzhou Tinci Materials Technology have also disclosed cooperation agreements. Ganfeng Lithium Group Chairman Li Liangbin recently predicted that if demand growth next year exceeds 30%, or even reaches 40%, the short-term supply imbalance could lead to prices exceeding 150,000 yuan/ton or even 200,000 yuan/ton. In the afternoon, the main contract of lithium carbonate on the Guangzhou Futures Exchange hit the limit up, reaching 95,200 yuan/ton, with a current increase of 9.0%, reaching a new high since July 2024. In addition, the AI application concept saw a rapid surge, with AIGC and Huawei Hongmeng concept stocks active. Shunya International Martech, 360 Security Technology Inc., and Beijing Teamsun Technology hit the limit up, while BlueFocus Intelligent Communications Group and Business-intelligence Of Oriental Nations Corporation outperformed. In terms of news, Alibaba officially announced today its full efforts to enter the AI to C market with the "Qian Wen" project. The Qian Wen App beta version has been launched in major app stores, as well as web and PC versions. In addition, Huawei is set to release breakthrough AI technology in the field on November 21, which is expected to solve the problem of computational resource utilization efficiency. In other hot spots, the military equipment sector saw a substantial rise, with Red Phase INC., Zhong Fu Tong Group, and Jianglong Shipbuilding hitting the limit up, while North Long Dragon New Materials Tech and SHENGNAN TECHNOLOGY followed suit. The aquaculture sector was active, with Zhanjiang Guolian Aquatic Products, Dahu Health Industry, and Cnfc Overseas Fisheries all experiencing significant gains. In terms of individual stocks, Contemporary Amperex Technology fell by over 3%, as the company's major shareholder and co-founder Huang Shilin plans to transfer 45.6324 million shares, accounting for 1% of the total share capital of the company, through an inquiry transfer due to personal fund needs. Zhongfu Straits, which has halted trading for 13 consecutive days, responded to the continued limit up, saying that the company's production and operations are normal, and any plans for future suspensions will be promptly disclosed. On the downside, precious metals, pharmaceutical commerce, and airport transportation sectors saw the most significant declines. The insurance, banking, and securities sectors were mostly in the red. Looking ahead, Huaan believes that the internal cooling and high-to-low phenomenon in the market will continue to be prominent, and this situation is expected to persist until the expected trading before the Central Economic Work Conference. Short-term rotation is accelerating, but it is difficult to grasp the pace. Adjusting the AI industry mainstream may provide a better opportunity for layout. In terms of individual stocks, out of 2584 listed companies, there were 2726 rising and 138 unchanged. In total, 100 stocks hit the limit up, while 13 stocks hit the limit down. By the close of trading, the Shanghai Composite Index fell by 0.46% to 3972.03 points, with a turnover of 805.7 billion yuan; the Shenzhen Component Index fell by 0.11% to 13202.00 points, with a turnover of 110.51 billion yuan. The ChiNext Index fell by 0.20% to 3105.20 points. Funds Movement: Today, main capital focused on software development, IT services, energy metals, and other sectors, with top inflows into stocks such as Huasheng Tiancheng, 360 Security Technology Inc., and Anhui Greatwall Military Industry. News Review: 1. The organic silicon industry will hold a meeting of controllers on November 18 to determine production reduction targets Responding to rumors of a meeting in the organic silicon industry on November 12 to discuss production cuts, Shandong Dongyue Silicone Material and Hubei Xingfa Chemicals Group confirmed that the meeting did take place. It was reported that the meeting on the 12th was just an initial meeting, and a meeting of controllers in the organic silicon industry will be held on the 18th to potentially determine production reduction targets. Market data shows that most organic silicon manufacturers are currently in a state of suspended trading. 2. Senior officials from the Japanese Ministry of Foreign Affairs visit China today to explain recent Taiwan-related remarks by Takaichi Sanae The head of the Asian and Oceania Bureau of the Japanese Ministry of Foreign Affairs, Masaki Kanai, will visit China starting today (November 17) and is expected to meet with Liu Jinsong, the head of the Asian Affairs Department of the Chinese Ministry of Foreign Affairs. Reports indicate that during the meeting, Masaki Kanai will explain that the recent Taiwan-related remarks by Japanese Prime Minister Takaichi Sanae have not changed Japan's consistent position, while also conveying the stance of "even if there are differences in positions between the two sides, they should avoid affecting personnel exchanges." 3. Alibaba's Qian Wen App is launched for public beta testing, fully entering the AI to C market On November 17, Alibaba officially announced the "Qian Wen" project, fully entering the AI to C market. On the same day, the beta version of the Qian Wen App was launched, competing with ChatGPT. It is revealed that future plans include integrating various life scenarios such as maps, takeout, ticket booking, office work, learning, shopping, and health into the Qian Wen App to enhance its task capabilities. After the launch, several users reported that the application was experiencing congestion shortly after its official launch, and commands entered in the dialogue box were not getting responses, rendering the service temporarily unavailable. In the afternoon, Alibaba Qian Wen responded to previous reports, saying, "I'm doing well, in good condition, welcome to ask." Market Outlook: 1. China Securities Co., Ltd.: A-share sentiment index declines at high levels, bullish on new energy, basic chemicals, etc. The A-share sentiment index has declined at high levels, while the Hong Kong stock sentiment index has risen. The VIX of the Shanghai 50, CSI 300, CSI 500, and CSI 1000 has fallen. Based on the multi-level threshold timing strategy of the Hong Kong stock sentiment index for the Hang Seng Index, the position is long. Currently, institutions are focusing on basic chemicals, defense and military industry, automobiles, textiles, non-bank financials, and media industries, with a decreasing focus on the communications industry. Over the past week, institutions' focus on the "petroleum and petrochemical," "coal," "steel," "light manufacturing," and "non-bank financial" industries has been increasing. Looking ahead to November 2025, relative returns are projected to be favorable for the power and public utilities, basic chemicals, power equipment and new energy, electronics, and computer industries. Current allocation: power and public utilities, basic chemicals, power equipment and new energy, electronics, and computers. 2. Huaan: Market enters high-level oscillation, adjustment in AI industry provides good opportunities for layout Since early October, the market has entered into high-level oscillation, with significant strength in industry rotation. The consumption industry's overall increase in returns was ahead last week, preceded by the resource industry's high return. Style and industry switches are occurring at a fast pace, with increased rotation intensity showing since mid-October. In terms of allocation, the internal cooling and high-to-low phenomenon remains prominent, and this situation is expected to continue until the expected trading before the Central Economic Work Conference. Short-term rotations are accelerating, but grasping the rhythm is challenging. Adjusting the AI industry mainstream may provide a better opportunity for layout. Additionally, areas with performance support such as energy storage/batteries, military industry, storage, engineering machinery, etc., can also be emphasized. 3. CMSC: Market expected to continue showing rotation between technology and cyclical sectors Domestically, as the total amount of financial indicators gradually decreases, the logic driven by macro liquidity will weaken marginally, but this does not mean the end of the market's rally. Looking ahead, the market is expected to continue showing rotation between technology and cyclical sectors. Overseas, the restoration of market risk appetite will depend on the backed up economic data due to government shutdowns, as well as statements from the Federal Reserve and figures like Trump, etc., to reduce uncertainty in expectations. Furthermore, if U.S. stocks continue to decline, it could pressure the Federal Reserve or Trump to release some dovish signals to maintain market stability. Areas with relatively high or improving prosperity, such as non-ferrous metals, coal, building materials, batteries, inverters, storage, and PCBs, are worth monitoring. This article is reprinted from "Tencent Picking Stocks", GMTEight edited by Liu Jiayin.