A-shares closing review | the three major indexes collectively fell, with high-dividend stocks actively bucking the trend! Coal stocks were strong.

Today, the overall market remains weak and volatile, with all three major indexes closing down collectively. The Shanghai Composite Index once again fell below 3900 points. Active funds are focusing on high-dividend stocks, with strength in the coal, highway, and non-ferrous metal sectors while most technology-related themes are adjusting. Trading volume in the market remains at a recent low, with over 3800 stocks falling. In terms of the market, the coal sector saw a counter-trend rally, with many stocks such as Henan Dayou Energy, Shanxi Antai Group, and Sundiro Holding hitting the daily limit up. In terms of news, a strong cold wave is hitting with temperatures in northern China dropping drastically, with some areas experiencing a temperature drop of over 10. GF Securities pointed out that coal prices have risen more than expected since the fourth quarter, with a 7.3% year-on-year increase in thermal power generation in October. Inventories at various stages are still lower than the same period last year, and seasonal demand is expected to further increase in late November, with coal prices expected to continue a stable and moderately strong trend towards the end of the year and into 2026. The commercial aerospace concept saw significant fluctuations today, with Shaanxi Aerospace Power Hi-tech initially hitting the daily limit up but later plummeting, along with stocks like Essence Fastening Systems. In terms of news, the Zhuque-3 carrier rocket was successfully launched at the Dongfang commercial aerospace innovation test area, completing its flight mission as planned and entering the designated orbit. However, the recovery test failed for specific reasons that are currently being further analyzed and investigated. In other hot sectors, the non-ferrous metal sector showed active performance, with many stocks like Shanxi Huayang New Material and Anhui Xinke New Materials hitting the daily limit up. The wind power sector saw a volatile strength, with Dajin Heavy Industry hitting the daily limit up in the afternoon. Local stocks in Fujian experienced a significant adjustment, with stocks like Fujian Dongbai and Zhongfu Straits hitting the daily limit down. AI applications, national defense, and military industry sectors were among the top decliners. Looking ahead, Cinda believes that in terms of the index breakthrough conditions, attention should be given to whether the Central Economic Work Conference in mid-December can bring policy changes that exceed expectations. Exceeding expectations in the pre-positioning of steady growth policies could accelerate the timing of the spring market. In terms of individual stocks, there were 1443 gainers and 3876 decliners in the two markets, with 137 staying flat. There were a total of 53 stocks hitting the daily limit up and 16 hitting the daily limit down. At the close, the Shanghai Composite Index fell 0.51% to 3878.00 points with a turnover of 647.2 billion yuan; the Shenzhen Component Index fell 0.78% to 12955.25 points with a turnover of 102.28 billion yuan. The ChiNext Index fell 1.12% to 3036.79 points. Fund trends Today, major funds focused on increasing positions in consumer metals, industrial metals, and optoelectronics. The leading stocks in terms of net inflows were Suzhou TFC Optical Communication, Eoptolink Technology Inc., and Boe Technology Group. Key News Review 1. From January to November, China's consumption of old-for-new goods drove sales of over 2.5 trillion yuan. According to the Ministry of Commerce, from January to November of this year, sales of related goods driven by the consumption of old-for-new goods exceeded 2.5 trillion yuan, benefiting over 360 million people. Among them, over 11.2 million cars were replaced by old-for-new, over 128.44 million units of household appliances were replaced by old-for-new, over 90.15 million pieces of digital products including phones were subsidized for new purchases, over 12.91 million electric bikes were replaced by old-for-new, and over 1.2 billion units of home renovation and kitchen and bathroom products were renewed. 2. Zhuque-3 carrier rocket successfully launched into orbit for reuse, recovery test failed On December 3, the Zhuque-3 carrier rocket was successfully launched at the Dongfang commercial aerospace innovation test area and completed its flight mission as planned, entering the designated orbit. The rocket also conducted a first-stage recovery test, but an abnormal combustion occurred during the process, leading to a failure in soft landing at the recovery site. The specific reasons are currently being further analyzed and investigated. 3. Ministry of Natural Resources: Accelerate self-strengthening of marine science and technology and promote new and greater breakthroughs in deep-sea access, exploration, and development Recently, the Ministry of Natural Resources held a symposium, emphasizing the need to make new and greater breakthroughs in deep-sea access, exploration, and development. It is necessary to leverage the advantages of a new nationwide system, strengthen original innovation and key core technology research, enhance the level of joint construction and sharing of major science and technology equipment, and application; scientifically plan the "Fourteenth Five-Year" plan and key tasks, continue to strengthen marine energy and resource surveys, accelerate high-level marine science and technology self-reliance and self-improvement, expand and deepen high-level ocean opening-up, and forge a new era of maritime workforce that is politically strong, professionally skilled, with excellent work style, and brave to win. 4. Two departments issued the "Action Plan for the Integration of Cultural Tourism with Civil Aviation Industry" The Ministry of Culture and Tourism and the Civil Aviation Administration of China issued the "Action Plan for the Integration of Cultural Tourism with Civil Aviation Industry." The plan proposes to further improve the convenience of inbound tourism. Efforts will continue to implement policies and measures to enhance the convenience of inbound tourism and travel for foreign visitors, and coordinate with the promotion of the "buy and refund" service measures for outbound tax rebates. It also aims to promote major airlines and hub airports in providing more convenient services for boarding, entry, and transit, strengthen guidance and assistance for international passengers taking flights to China, improve foreign language signage and guidance facilities at airports, and encourage hub airports to provide portable translation device rental services. It will also establish a simplified procedure mechanism for hub airports and expand the coverage of international through-flight routes. Future market outlook 1. East Money Information: The expectation of RMB appreciation is strong, expected to drive the accelerated allocation pace of foreign capital to the A-share market East Money Information Securities believes that since November, the RMB exchange rate against the US dollar has shown a stable trend with a bias towards strength. The rising expectations of a rate cut by the Federal Reserve, stability in US-China relations, and the exchange needs of exporting companies are the main reasons for the current strong expectation of RMB appreciation. RMB appreciation is conducive to reducing costs for import-dependent industries and marginal improvement for companies with US dollar debt financing. From the perspective of asset allocation logic, the appreciation expectation enhances the relative attractiveness of RMB assets, and is expected to drive the accelerated allocation pace of foreign capital to the A-share market. The important policy conference after the mid-December will be the focus of December's strategic layout for the coming year-end/spring markets. Industries to watch: semiconductors, energy storage, Siasun Robot & Automation, AI applications, and pharmaceuticals. 2. Huaxi: The slowdown in incremental capital inflows to the market is leading to faster industry rotation Huaxi believes that in terms of capital flow, the slowdown in incremental capital inflows to the market is leading to faster industry rotations. The market continues to be a game of existing stocks. With the reduced risk appetite of investors towards the year-end, the speed of industry rotation is significantly increasing. In terms of overseas policies, the meeting of the Federal Reserve on December 10 is expected to result in a 25 basis point rate cut. On the domestic policy front, according to past practices, important meetings and the Central Economic Work Conference to be held in mid-December will define the economic development goals and macro policy tones for 2026. Policy expectations are expected to drive institutional deployment of a new round of year-end markets, focusing on areas such as anti-inner circle, consumption promotion, and new productive forces.