A-share market closing review | Afternoon market rapidly surged, plate-supporting forces emerged! Many ETFs suddenly traded in large volumes.

This afternoon, the market surged rapidly, with the Shanghai Composite Index rising more than 1% and the ChiNext Index rising more than 3%. Large financial stocks, including securities firms, led the charge, boosting market sentiment. Several broad-based ETFs, including the CSI 300 ETF, saw significant trading volume. The market saw a total turnover of 1.8 trillion RMB, with over 3600 stocks in both markets experiencing gains. On the news front, the Social Security Fund Committee held a meeting to convey the spirit of the Central Economic Work Conference. The meeting emphasized the need to fully leverage long-term funds and patient capital, actively serve the country's development needs, and better support the deep integration of technological and industrial innovation, while maintaining the security bottom line. In the afternoon, securities firms, known as the vanguards of the bull market, saw collective movements. Huatai surged over 9% at one point, while GF SEC rose over 5%. The rally in the securities sector provided a significant boost to A-shares. Previously, CICC announced a stock swap merger with Dongxing and Cinda by issuing A-shares to the shareholders of both companies. According to the relevant rules of the Shanghai Stock Exchange, the expected suspension period will not exceed 25 trading days. Based on this calculation, the three companies are expected to resume trading soon. Analysts believe that the resumption of trading for these three companies may provide significant support for the securities sector. In other hot sectors, the lithium mining sector strengthened, with Jinyuan EP Co., Ltd. hitting two consecutive trading limits and Chengxin Lithium Group also hitting the limit. The electrolyte concept saw a rebound, with Tonze New Energy Technology hitting the limit. The computing power hardware concept was active, with Universal Scientific Industrial (Shanghai) Co. hitting the limit, and the three giants in the solar module industry collectively rising. The retail and dairy sectors also saw a rebound, with Lanzhou Zhuangyuan Pasture hitting the limit and Liqun Commercial Group rising for the second consecutive day. In terms of individual stocks, Muxi Shares closed up nearly 700%, with the stock price surpassing 800 RMB per share, reaching a total market value of 332 billion RMB. Sectors such as Hainan and military industry saw declines. Looking ahead, Galaxy Securities believes that in the short term, as the year-end approaches, the market's characteristics of oscillating structure may continue. The market rotation speed is fast, and attention should be focused on the layout opportunities for next year's policy dividends and economic trends. In terms of individual stocks, there were 3626 gainers and 1635 decliners in the two markets, with 198 stocks remaining unchanged. There were a total of 57 limit-up stocks and 27 limit-down stocks. At the close, the Shanghai Composite Index rose 1.19% to 3870.28 points, with a turnover of 766.8 billion RMB; the Shenzhen Component Index rose 2.40% to 13224.51 points, with a turnover of 104.43 billion RMB. The ChiNext Index rose 3.39% to 3175.91 points. Capital flows Today, main capital inflows focused on sectors such as communications equipment, batteries, and energy metals. The top net inflow stocks for main capital included Shenzhen Envicool Technology, Zhongji Innolight, and Xinyisheng. Highlights Review 1. Chongqing: Promoting the development of AI phones and AI computers with multimodal interaction and intention understanding functions Chongqing released the "Chongqing Action Plan for Promoting 'AI+" Development", which mentioned that by 2026, significant results will be achieved in the bi-directional empowerment of AI and Digital Chongqing, forming a number of AI-empowered comprehensive application scenarios, with a penetration rate of new generation intelligent terminals and intelligent bodies exceeding 70%. By 2027, AI will be extensively and deeply integrated into the six key areas of science and technology, industry, governance, people's livelihood, consumption, and openness. 2. OpenAI reportedly plans to raise at least $10 billion from Amazon It is reported that OpenAI is negotiating with Amazon to raise at least $10 billion from Amazon and use Amazon's AI chips. One source said that this investment would push OpenAI's valuation above $500 billion. 3. China's invasive brain-machine interface clinical trial makes new progress Today, the Chinese Academy of Sciences' Center of Excellence in Brain Science and Intelligent Technology released new progress in the second invasive brain-machine interface clinical trial conducted in collaboration with domestic research institutions and medical units. This clinical trial has achieved a significant transition from two-dimensional screen cursor control to three-dimensional interaction with the physical world. The system has now allowed users to achieve operation speeds on smartphones and computers comparable to those of the average person through "thoughts" using the brain and partial control over Siasun Robot & Automation. 4. Sichuan: Will continue to increase support for hydrogen energy industry and take effective measures to solve industrial problems Recently, the "Chongqing Development Plan for Hydrogen Station Industry" was issued, proposing to moderately advance the layout of hydrogen stations and supporting facilities. It was reported that in the past year and a half, Sichuan's hydrogen energy industry chain has made significant progress, with continuous breakthroughs in the application of industrial scale and the improvement of the production and storage system, and the industry ecology is becoming increasingly mature. Next, Sichuan will continue to leverage its resource advantages, focusing on applications, to further increase support for the hydrogen energy industry. Future Judgment 1. Cinda: Style switching may become stronger, focus on low-value sectors Cinda believes that recent configuration views: Style switching may become stronger, focusing on low-value sectors. Non-banking financial institutions are gradually increasing their resilience, with a focus on low-value power equipment and AI applications in the growth sector. Cyclical stocks are also expected to show resilience in the next six months. The style can easily change after the bull market turbulence period. After the bull market turbulence, there is a high probability that the style of both large and small caps will change, and there is no clear rule for the transition of growth and value styles, even if the growth and value styles remain the same. Leading sectors are likely to see some changes. 2. Galaxy Securities: The characteristics of the market oscillating structure may continue as the year draws to a close, pay attention to opportunities in next year's policy dividends and economic trends Galaxy Securities believes that in the short term, as the year draws to a close, the characteristics of the market's oscillating structure may continue, with a fast-paced market rotation speed. Special attention should be paid to the layout opportunities for next year's policy dividends and economic trends. In terms of configuration, focus on the following "two main lines + two auxiliary lines": the first main line is the global once-in-a-century great changes accelerating, with the country's economic logic shifting towards new productive forces. The ten key areas such as artificial intelligence, embodied intelligence, new energy, controllable nuclear fusion, quantum technology, aerospace, etc., are worth paying attention to. The second main line is the moderate advancement of anti-over-investment policies, with the optimization of supply and demand structures coupled with expectations of price increases driving the repair path for the profits of the manufacturing and resource sectors. In addition, under the guidance of expanding domestic demand policies, the consumption sector is facing a window of opportunity, and the trend towards going abroad will further open up the profit space for businesses. 3. CMSC: Investment opportunities for next year will focus on domestic demand recovery and technological self-reliance, and cyclical styles are expected to continue to dominate CMSC believes that looking ahead to 2026, as the year marking the beginning of China's "15th Five-Year Plan" and the mid-term election year in the United States, it will form a crucial policy resonance. Against the background of good profitability in the past two years and the scarcity of assets with high returns, A-share fund supply and demand are expected to continue to see a large-scale net inflow, providing liquidity support for the realization of a slow bull market. Investment strategies should focus on the core idea of "seeking cycles in style switching and looking long-term with dual drives", with investment opportunities revolving around "domestic demand recovery" and "technological self-reliance". In terms of style, balance between large and small caps, with cyclical styles expected to continue to dominate, at the industry level, focusing on three clues of cyclical sectors and capacity clearance, technological innovation and advantage manufacturing, and expanded domestic demand. It is recommended to focus on industries such as non-ferrous metals, machinery and equipment, power equipment, electronics, media, and social services. This article is reproduced from "Tencent Select Stocks", GMTEight Editor: Liu Jiayin.