Pre-market report on A-shares: The silicone industry will discuss reducing production targets to prevent overcapacity. Two leading stocks in the Fujian concept sector have been halted from trading.

Pre-market News 1. The market is full of expectations! The silicon industry will hold a meeting of controlling shareholders to discuss reducing production targets to combat internal competition Type: Industry Sentiment impact: Positive On November 18th, several major silicon companies' controlling shareholders will gather in Shanghai to discuss combating internal competition. The industry companies have reached a preliminary consensus on production reduction targets and timing in the previous week, and industry insiders expect the details to be finalized at this controlling shareholder meeting. Industry professionals indicate that the effectiveness of the production reduction to support prices during the current industry off-season remains to be further observed. 2. Accumulated surge of over 200%! Two high-flying Fujian concept stocks suspended for abnormal stock trading volatility and investigation Type: Company Sentiment impact: Negative Strait Innovation Internet announced that the company's stock price surged by 185.89% from October 27th to November 17th, significantly deviating from the company's fundamentals. The company will conduct an investigation into the stock trading volatility. Zhongfu Straits also announced that the stock price surge significantly deviates from the company's fundamentals. The company's stock was suspended from trading on November 18th, after experiencing a "21 days, 13 limit-up" trend, with a cumulative price rise of 255.19%. 3. Foreign investors are bullish again! Morgan Stanley forecasts that the Chinese stock market is expected to continue rising in 2026 Type: Market Sentiment impact: Positive Morgan Stanley's latest forecast indicates that the Chinese stock market is expected to continue rising in 2026, following this year's strong upward trend. Morgan Stanley stated that their target for the Hang Seng Index in 2026 is 27,500 points, and for the Shanghai and Shenzhen 300 Index at the end of 2026 is 4840 points, approximately 4% and 5% higher than the current levels, respectively. 4. Trading activity shows some moderation after hitting a high: Stamp duty on securities trading in October decreased by 30.7% month-on-month Type: Macro Sentiment impact: Neutral On November 17th, data from the Ministry of Finance showed that stamp duty revenue from securities trading in October was 18.1 billion RMB, a year-on-year increase of 17.53% but a month-on-month decrease of 30%. The situation in October led to a 20% decline in cumulative growth rates. The change in stamp duty for securities trading in October reflects a moderation in trading activity after reaching a high level, but still significantly higher than the same period last year. Investment Calendar China International Photovoltaic and Energy Storage Industry Conference Investment Tips Investment Tips: Panic often makes everyone seem weak and incompetent, and similarly, the enthusiasm of bubbles makes everyone look so wise. Timothy Geithner's "Stress Test" Institutional Views 1. Guotou Securities: Maintain the style switch until the buffalo transitions to the fundamental bull market, and then look favorably on outbound investments and low-cycle sectors. 2. Huaxi: A-shares are in a period of true vacuum in performance. The weak guidance from fundamentals indicates a positive outlook for energy storage and domestic substitution sectors. 3. Industrial: Structural "rebalancing" has become a common feature of global stock markets, with a focus on technology growth and cyclical sectors next year. Positive and Negative Prospects 1. National Medical Products Administration: Encouraging the first launch of new cosmetic products in China, increasing industry support Type: Policy Focus Zheshang: It is expected that new consumption brands in the beauty and personal care industry will maintain a compound annual growth rate of 20% to 30% in revenue and profit in the next 2-3 years, with attractive prospects for momentum and certainty. 2. The 2025 Quantum Technology and Industry Conference will be held, with a series of heavyweight technological achievements to be released Type: Market Hot Topic CICC: Quantum computing, as a forefront of the new technological revolution and industrial change, is accelerating from experimental verification to commercial application. Hardware components will be the first to benefit, and core equipment such as measurement and control systems and dilution refrigerators are expected to enter mass production cycles soon. 3. Chairman of Ganfeng Lithium Group: Lithium carbonate prices are expected to exceed 15 or even 20,000 RMB per ton in 2026 Type: Market Hot Topic Minmetals Securities: The profit margin of the lithium battery materials industry has improved, and a turning point is gradually becoming clear. The turning point rhythm may vary in different stages, with the copper foil segment potentially leading this industry turning point, followed by changes in the supply side of iron-lithium and negative electrodes. Announcements Recap Positive Announcements 1. Trina Solar Co., Ltd.: Controlling subsidiary, Tianhe Energy Storage, signed a 2.66GWh energy storage product sales contract 2. Semiconductor Manufacturing International Corporation: Undertook a large number of analog and storage rush orders, maintaining a high-price trend in storage supplies 3. China Railway Construction Corporation: Recently won a major project worth 49.629 billion RMB, accounting for 4.65% of last year's revenue Negative Announcements 1. Shengke Communication: Shareholder National Integrated Circuit Fund reduced its stake in the company by 2.49% 2. Hunan Creator Information Technologies: Suspected of illegal information disclosure, the company is under investigation by the China Securities Regulatory Commission 3. CECEP Guozhen Environmental Protection Technology: Shareholder Ecological Environment Group plans to increase its shareholding by no less than 2% Overseas Market Self-selected Brother Tips: Valuation concerns once again dominate the market, with all three major indices collectively falling; AI indicator NVIDIA announced its earnings after Wednesday's market close, closing down by 1.83%; Berkshire Hathaway took a position in Google, leading Google to close up over 3%. This article is reprinted from "Tencent Select Stock", GMTEight Editor: Li Fo.