A-share market review | ChiNext index rose and then fell by 0.44%, consumer electronics remained strong throughout the day. How to view the current market situation?

Market rose and then fell, with the three major indexes showing mixed movements, with the ChiNext Index and the Shenzhen Component Index turning green. At the close, the Shanghai Composite Index rose by 0.29%, the Shenzhen Component Index fell by 0.25%, and the ChiNext Index fell by 0.44%. In terms of the market, consumer electronics were strong throughout the day, with multiple stocks like Fujian Furi Electronics and Daoming Optics&Chemical hitting limit up; the solid-state battery and battery industry chain collectively strengthened, with Foshan Golden Milky Way Intelligent Equipment rising by over 10%; the organic silicon sector showed strong fluctuations, with Jiangxi Hungpai New Material and Jiangxi Chenguang New Materials hitting limit up; semiconductor chip stocks rose, as did computing power hardware stocks; the retail concept was active, with Maoye Commercial and Guangzhou Grandbuy hitting limit up. Regarding the strength of the consumer electronics sector, according to Securities Times, it is mainly due to three factors: Firstly, Huawei held a new product launch event on November 25, unveiling a number of new products such as the HUAWEI Mate 80 series, HUAWEI Mate X7, HUAWEI FreeBuds Pro 5, and the Huawei smart screen MateTV MAX. In addition, Alibaba held a new product launch event for its first self-developed flagship dual-screen AI glasses - the Quark AI Glasses 2025 today. On the policy front, recently, the Ministry of Industry and Information Technology issued the "Implementation Plan on Enhancing the Supply and Demand Adaptation of Consumer Goods to Further Promote Consumption". It mentioned strengthening artificial intelligence integration empowerment, promoting the application of artificial intelligence in the entire consumer goods industry across all fields and processes, promoting new tools such as generative artificial intelligence and 3D digital design. It organizes activities to empower artificial intelligence in the consumer goods industry, promoting deep integration between solution providers and production companies. Encouraging the development of home services provider Siasun Robot & Automation, smart home appliances, and artificial intelligence smartphones, computers, toys, glasses, brain-computer interfaces, and other artificial intelligence terminals to provide entertainment, health, care, and other life services using smart products as carriers. GF SEC stated that as AI technology penetrates into terminals, new devices such as smart wearables and AI glasses are expected to open up incremental space, driving the consumer electronics industry towards long-term growth. In terms of declines, the Hainan Free Trade Zone concept showed fluctuations and declines; AI application end fluctuated downwards, with Sora, Zhupu AI, and AI Corpus leading the declines. Looking ahead, Datong Securities stated that the overall market fundamentals have not shown a deteriorating trend, and the short-term adjustment is likely more for a better take-off. Hot sectors: 1. Strong performance in the consumer electronics sector The consumer electronics sector was active, with Fujian Furi Electronics hitting limit up. Commentary: On the news front, at the recent Huawei full-scenario new product launch event, the new Mate80 and Mate80Pro series models were officially launched and will go on sale on November 28. China Galaxy Securities stated that the current "recovery period" for consumer electronics is real but not a universal, strong rebound across the whole industry. It is a structural, differentiated recovery process driven by AI technology, leading the high-end market and accompanying the healthy inventory process of the industry chain. 2. Semiconductors leading the gains The semiconductor sector was strong, with Sai MicroElectronics Inc. rising by over 15%. Commentary: On the news front, Google is challenging Nvidia's dominance in the AI chip market with its latest breakthrough in AI model technology. The search giant has begun pitching its TPU chips deployed in its own data centers to major customers like Meta, aiming to expand this alternative AI chip from Google Cloud leasing business to a broader market. China Securities Co.,Ltd. believes that the core demand in this semiconductor cycle is AI. By 2023-2024, AI demand will be concentrated in the cloud, with the iterative evolution of large models driving rapid growth in computing infrastructure demand, with GPUs and HBM iterating almost one generation per year, along with complementary network cards, optical modules, cooling, copper cables/PCBs, and so forth. 3. Solid-state batteries on the rise Stocks related to the solid-state battery concept showed fluctuations and rises, with Anhui Estone Materials Technology hitting limit up. Commentary: On the news front, it is understood from relevant listed companies that semi-solid-state batteries will be the pioneers in application in the next few years, with fully solid-state batteries expected to enter an important pilot phase from 2026 to 2027. CITIC SEC pointed out that the total global solid-state battery shipments in 2030 will exceed 700 GWh, with over 200 GWh being fully solid-state batteries. 4. CPO concept on the rise again The CPO concept rose, with Cig Shanghai rising by over 5%. Commentary: On the news front, Meta plans to rent TPU computing power from Google Cloud starting in 2026 and deploy Google TPU in its own data centers in 2027, with transaction size possibly reaching billions of dollars. Central China stated that the outlook for capital expenditure for top cloud providers is optimistic, with high demand throughout the AI computing power industry chain. With an increase in 800G demand and the accelerated introduction of 1.6T, the industry is in a period of technical iteration from 800G to 1.6T. Leading optical module manufacturers have advanced technology, stable customer relationships, and the ability to deliver on a large scale, and their advantages will be further highlighted. The development of AI is driving the construction of large data centers, with optical device manufacturers benefiting from terminal demand, entering a period of expanded production bonus. 5. Organic silicon concept showing unusual movements The organic silicon concept rose during the day, with Foshan Golden Milky Way Intelligent Equipment rising by nearly 13%, and stocks like Jiangxi Chenguang New Materials following suit. Commentary: On the news front, on November 25, Dow Chemical announced to its Greater China partners that its organic silicon business line for consumer solutions will implement a 10-20% price increase on its main products starting December 10 (or as per the contract terms). Debon Securities pointed out that promoting the orderly exit of backward production capacity, combined with continued industry association initiatives to promote the healthy development of the organic silicon industry through moderate collaboration in production cuts, may become a normalized operation in the organic silicon industry, driving the continuous recovery of organic silicon prices and industry profits. Institutional views: Central China: Shanghai Composite Index likely to consolidate around 4000 points, cyclicals and tech stocks may take turns to perform Central China stated that last week saw repeated fluctuations in expectations of a rate cut by the Fed, with some institutional investors choosing to lock in annual returns and rankings by the end of the year, leading to increased market volatility. However, in the medium to long term, the basis supporting the current A-share rally has not changed. The Shanghai Composite Index is likely to consolidate around 4000 points, with a continued rebalancing of market styles, with cyclical and tech stocks expected to perform alternately. Xiangcai Securities: Market still in a "slow bull" trend, but short-term adjustment due to large amplitude needs time to repair Xiangcai Securities believes that since 2025, major A-share indices have maintained an overall trend of oscillating upward, with November showing a trend of first platform consolidation followed by a significant retreat. The main reasons are: firstly, the significant fluctuations in the probability of a December rate cut by the Fed, which dropped to below 50%, causing a decline in US stocks and dragging down global equity markets. Secondly, after accumulating certain gains, the recent technology sector and "anti-exhaustion" sectors have experienced pullbacks and consolidation. Against the backdrop of the vigorous promotion of the development of new quality productivity in the "Five-Fifteen" Plan, the market is expected to still be in a "slow bull" trend, but the short-term adjustment has been too large and needs time to repair, with December likely to present a narrow range oscillation upward pattern. Dongguan Securities: If the Shanghai Composite Index stabilizes around 3850 points, a recovery trend may continue Dongguan Securities believes that from a technical analysis perspective, the Shanghai Composite Index is supported by the 3816.575-point support level, but the 5-day moving average forms a short-term resistance, and if the Shanghai Composite Index stabilizes around 3850 points, a recovery trend may continue. Towards the end of the year, some investors are keen to lock in profits and reduce positions, adding to the market volatility and weakening confidence; the slowdown in the filing of equity products leads to insufficient incremental supply, impacting the micro-structure of the stock market. In addition, with the significant economic implications of the beginning of the "Five-Fifteen" Plan, and the approaching policy window, the market is expected to form new expectations. The regulatory stance is clear and decisive in stabilizing the market, and the previous valuation discount factors have partially dissipated, with reduced tail risks, stabilization of RMB assets, and China's capital market entering a phase of valuation recovery and development cycle, with further upside potential expected. Orient Securities: Market risks have been significantly released, with minimal downside potential Orient Securities believes that from a technical analysis perspective, after continuous declines last week, market risks have been significantly released, with minimal downside potential, and Shanghai Composite Index have strong support near 3800 points; considering the limited increase in market turnover, the market will extend the adjustment time, and after the stock indices gradually stabilize, they will still rise opportunistically.