A-share market review | Shanghai Composite Index closes up by 0.18%, weighted blue-chip stocks take the lead! Banks and insurance companies lead the charge.

Today, the market rebounded with low volume, with the military, insurance, banking, and aquaculture sectors leading the gains. Total market turnover was about 1.7 trillion for the day, which was about 200 billion less than the previous trading day, with over 4100 stocks falling. On the market front, large-cap weighted blue-chip stocks performed well, with the overall performance of "giants" better than small-cap stocks. Among the top 10 stocks by total market value, all except Kweichow Moutai rose, with the Shanghai 50 Index rising nearly 1%. Specifically, banking stocks rose, with Bank Of China surging over 3% to hit a new historical high; insurance stocks were strong throughout the day, with stocks like China Life Insurance and Ping An Insurance rising; high-dividend sectors such as combustible ice and oil services saw gains, with the "Big Three" oil companies - China Petroleum & Chemical Corporation, Petrochina, and CNOOC Limited - all rising sharply. In addition, lithium mining stocks strengthened again, with lithium extraction from brine and phosphate chemicals seeing a collective surge. Jinyuan EP Co., Ltd. hit the limit up, while YOUNGY Co., Ltd. and others followed suit. In terms of news, the main contract price of lithium carbonate futures broke 100,000 yuan/ton at one point today for the first time since June 2024, with an intraday increase of nearly 6%. An analyst from Shanghai Ganglian E-Commerce Holdings stated that the recent rise in lithium carbonate prices was driven by a surge in energy storage market orders both domestically and internationally, leading to a continued strong production outlook for battery and lithium iron material companies. In other hot spots, military stocks were active, with the maritime sector showing strength, as Asian Star Anchor Chain hit the limit up; aquaculture stocks saw a rapid rise in the afternoon, with several stocks like Zhanjiang Guolian Aquatic Products, Shandong Homey Aquatic Development, Dahu Health Industry, and Zoneco Group hitting the daily limit up at the opening bell in the afternoon. According to reports from Observer Net, several Japanese media outlets reported that China has informed the Japanese government of a suspension of imports of Japanese aquatic products. The precious metals sector continued its strength, with Zhongjin Gold Corp., Ltd. hitting the limit up. On the downside, high-priced stocks continued to diverge, with several stocks like Fujian Sanmu Group and Shandong Shengli hitting the limit down, while HPGC Renmintongtai Pharmaceutical Corporation, Shanxi Antai Group, and others saw significant declines. The Hainan and duty-free shop sectors saw an overall decline, with Hainan Haiyao hitting the limit down; AI marketing, film and television media, and other AI application concepts all saw a collective decline, while sectors like pharmaceuticals, airport and shipping, and the automotive industry chain all showed weakness. Looking ahead, Cinda stated that the market style switch may become stronger, and they will focus on low-value sectors. Non-financial financials are gradually increasing in elasticity, and they are also focusing on low-value power equipment and AI application terminals. Cyclical stocks are also likely to show resilience over the next six months. In terms of individual stocks, there were 1200 gainers and 4175 losers in the market, with 76 stocks trading flat. There were 65 limit-up stocks and 35 limit-down stocks in total. As of the close, the Shanghai Composite Index was up by 0.18% to 3946.74 points, with a turnover of 720.9 billion yuan; the Shenzhen Component Index was up by 0.00% to 13080.09 points, with a turnover of 100.22 billion yuan. The ChiNext Index rose by 0.25% to 3076.85 points. Fund Flow Today, main funds focused on seizing opportunities in the communication equipment, marine equipment, energy metals, and other sectors. The top stocks with net inflows of main funds included Contemporary Amperex Technology, Suzhou Hailu Heavy Industry, Ganfeng Lithium Group, etc. News Review 1. Flash memory prices increase significantly, with the highest increase reaching 38.46% Following the significant increase in DRAM prices, flash memory has also seen a comprehensive price increase. According to the latest market prices from CFM, on November 19, FlashWafer prices showed a comprehensive increase, with the highest increase reaching 38.46%. Specifically, 1Tb QLC increased by 25.00% to $12.50, 1Tb TLC by 23.81% to $13.00, 512Gb TLC by 38.46% to $9.00, and 256Gb TLC by 14.58% to $5.50. 2. Organic silicon DMC resumes quoting, increased to 13200 yuan/ton After the organic silicon shareholder meeting ended yesterday, manufacturers resumed quoting for organic silicon DMC today, raising the price to 13,200 yuan/ton, an increase of about 200 yuan/ton from the start of the meeting. As a result, downstream products such as 107 glue and raw rubber also saw varying degrees of price increases. Analysts pointed out that considering the industry is still in the off-season, the market's acceptance of price increases still remains to be observed. 3. China successfully launches Practice Thirty A, B, C satellites According to Xinhua News Agency, at 12:01 on November 19, China successfully launched Practice Thirty A, B, and C satellites using the Long March 2C carrier rocket at the Jiuquan Satellite Launch Center. The satellites successfully entered their planned orbits, and the launch mission was a complete success. The Practice Thirty A, B, and C satellites are mainly used for space environment detection and related technology verification. This mission was the 608th flight of the Long March series carrier rocket. Market Forecast 1. Cinda: Style switches may become stronger, and the technology theme may return Cinda believes that over the past two months, the value style has shown significant strength and diffusion, with finance, cyclical, and consumer sectors taking turns to perform. The main reason is the lack of high-frequency quarterly reports proving earnings in the sector due to the end-of-year performance window, causing most volatility to come from valuations and expectations. It is difficult for a single industry to drive the index to short-term high gains. The current style diffusion is still at the stage driven by valuations, expectations, and funds and could last for 1-2 quarters. However, the transformation of style diffusion into an annual market will require the realization of earnings logic in value stocks. Before that, the technology theme, with a stronger long-term industrial logic, may return. The style switch may become stronger in the near future, focusing on low-value sectors. Growth-focused on low-value power equipment and AI applications, with cyclical stocks expected to show resilience within six months. 2. Zhongtai: Short-term market trends may be liquidity-driven, with structural opportunities as the main line Zhongtai believes that marginal improvements in prices and expectations of loose macroeconomic policies may drive A-shares into a stage of "upward volatility with structural dominance." In the short term, the market is likely to be characterized by a trend dominated by liquidity and a main theme of structural opportunities. The cyclical sector is expected to maintain a certain level of strength, but its sustainability will depend on resonance from external demand, real estate chains, and other factors, making it a phase-trading play. In the backdrop of interest rate moderation and policy support for "technological innovation" and "new productive forces," the technology growth sector is expected to remain a medium-term main theme and have a strong foundation for further strength after volatility. Overall, the current market does not need to be pessimistic, and it is recommended to continue to maintain a slightly positive position structure, avoiding blindly chasing index highs. Until the consolidation pattern above 4000 points is broken, the most optimal strategy is still to focus on a structured configuration around the dual themes of "anti-subordination + AI application," using a triple consensus on business trends, policy directions, and fund flows to achieve excess returns. 3. EB SECURITIES: The market's general direction may still be in a bull market, but the short term may enter a phase of wide fluctuations EB SECURITIES believes that the market's general direction may still be in a bull market, but the short term may enter a phase of wide fluctuations. Compared to previous bull markets, the current index still has a considerable room for advancement, but under the national policy guidance for a "slow bull," the duration of the bull market may be more important than the magnitude of the increase. However, in the short term, the market may lack strong catalysts, and with some investors tending towards conservative behavior towards the end of the year, the stock market may primarily be in a phase of leveraging up with volatility. This article is reproduced from "Tencent Stock Picks", edited by GMTEight: Liu Jiayin.