A-share market's closing review: Shanghai Composite Index closes up by 0.16%, strong outbreak of the medical and commercial concept.

Today's market is volatile and divergent, with strong styles such as banks and coal driving the market, supporting the Shanghai Composite Index. Stocks in new energy and computing power sectors are adjusting, dragging down the ChiNext Index. The market saw a total turnover of 1.6 trillion RMB for the day, a decrease of over 100 billion compared to the previous trading day, with more stocks rising than falling in general. In terms of the market, the pharmaceutical and commercial concepts surged, with several stocks including Shu Yu Civilian Pharmacy Corp., Ltd. and Anhui Huaren Health Pharmaceutical hitting the daily limit. In recent news, Ant Group officially launched an AI health application called "Ant Afu", with a monthly active user base exceeding 15 million. Market participants believe that the deep integration of AI technology and health management scenarios is expected to open up new growth opportunities and boost overall sector sentiment. In other hotspots, the banking sector rose in the afternoon, with stocks like Bank of Shanghai and Chongqing Rural Commercial Bank rising by over 3%; the coal sector saw gains, with stocks like Shanxi Antai Group and Shaanxi Coal Industry leading the way; the storage chip sector rose in the afternoon, with Shenzhen Mason Technologies hitting the daily limit; the brokerage sector opened high but closed lower, with CICC hitting the limit up at the opening and ultimately closing up 3.7%; CPO, lithium batteries, and other sectors fell. Looking ahead, BOC International believes that with the easing of geopolitical risks and the gradual implementation of Sino-US policies, the A-share market's year-end positioning rally is expected to start early next year, focusing on the "spring enthusiasm" layout, with a focus on the technology and "anti-internal circulation" themes. In terms of individual stocks, there were 2845 gainers and 2416 losers in the two markets, with 199 stocks remaining unchanged. Seventy-two stocks hit the daily limit, while eight stocks hit the limit down. At the close, the Shanghai Composite Index rose by 0.16% to 3876.37 points, with a turnover of 704.9 billion RMB; the Shenzhen Component Index fell by 1.29% to 13053.97 points, with a turnover of 950.6 billion RMB. The ChiNext Index fell by 2.17% to 3107.06 points. Funds flow Today, the main focus of funds was on the aerospace equipment, military electronics, and chemical products sectors. Stocks that saw the highest net inflows from the main players include Hunan Kaimeite Gases, China Spacesat, and Shanghai Shunho New Materials Technology. News recap 1. China Photovoltaic Industry Association: Resolutely oppose malicious competition at prices below cost At the 2025 Photovoltaic Industry Annual Conference, Wang Bohua, Honorary Chairman of the China Photovoltaic Industry Association, stated that the photovoltaic industry is in a transformative period towards high-quality development. The demand side still has significant potential, and the central economic work conference has set the direction for high-quality development of the photovoltaic industry. Wang Bohua believes that during this transition period, it is important to reject "internal competition" and lay the foundation for high-quality development of the photovoltaic industry. This requires the participation of industry regulators, local governments, industry associations, various media organizations, financial institutions, and companies supporting industry self-discipline. It is important to resolutely oppose malicious competition at prices below cost, as well as blindly expanding production in violation of market economic laws and regulations. Secondly, the application side needs to implement the concept of high-quality development, including not bidding below full cost on the application side, further reducing unreasonable resource fees and actively adapting to the new market situation. 2. National Development and Reform Commission: Expand effective investment in emerging industries and plan for future industrial projects The National Development and Reform Commission released a document titled "Focusing on Expanding Effective Investment", which emphasized optimizing investment structure and expanding investment space. It aims to stabilize the investment foundation in traditional areas, cultivate new growth drivers for investment, and strive to maintain stable investment growth. The focus is on the development of new productive forces that are conducive to local conditions, promoting technological transformation and upgrading of traditional industries, expanding effective investment in emerging industries, and planning for future industrial projects. It also focuses on promoting the high-quality and efficient development of the service industry, expanding investment in productive services such as technology, software, information, and logistics. 3. Guangzhou's first special policy to support the development of the gaming and esports industry to be announced soon During the main forum of the 2025 China Digital Entertainment Conference, Du Xinshan, member of the Guangzhou Municipal Committee and Minister of the Propaganda Department, revealed that the Guangzhou Municipal Government Executive Meeting recently approved the "Eighteen Measures to Support the Development of the Gaming and Esports Industry in Guangzhou". This policy will be announced to the public soon and will be the first special policy to support the development of the gaming and esports industry in Guangzhou. 4. Trump: Will announce the next Federal Reserve Chairman soon US President Trump stated that he will soon announce the next Federal Reserve Chairman. The next Federal Reserve Chairman will believe in low interest rates. Wage growth far exceeds inflation. The effects of tax cuts will be seen next year. Market outlook 1. EB SECURITIES: New policy deployment will support the A-share year-end rally EB SECURITIES believes that the new policy deployment will support the A-share year-end rally. On the one hand, domestic economic policies are expected to continue to exert force, with economic growth expected to remain in a reasonable range, further consolidating the foundation for the prosperous development of the capital market. On the other hand, the release of policy dividends is expected to boost market confidence, further attracting various funds to actively flow in. Historically, the A-share market has shown good performance in the opening years of the 13th and 14th Five-Year Plans. The positive performance in the opening years is expected to continue in 2026. In terms of industry allocation, focus on the TMT and advanced manufacturing sectors; if the market experiences short-term volatility due to external factors, focus on defensive and consumer sectors. 2. Huachuang Securities: The launch of the spring frenzy may need to wait for real estate risks to be resolved Huachuang Securities believes that the emergence of the spring frenzy must be preceded by a low point, which means that the core factors driving the decline have changed, or that stock prices have already been fully absorbed. The fundamental reason for this round of retracement is still the drag from real estate and domestic demand. The substantial retreat of the Hong Kong real estate chain is mainly due to its performance being more affected than A-shares. The signal of destocking in real estate is clear, but the market's reaction is cautious, and the substance still needs to be observed. The launch of the spring frenzy may need to wait for the resolution of real estate risks. Focus on the bond redemption situation in 2026 and the extension process of Vanke. With the widening of dual tracks, the short-term focus of configuration remains on technology and the strong getting stronger. Pay attention to the expansion of the AI chain to the application side and finding tenfold stocks among the threefold stocks. The Central Economic Work Conference has shifted from extraordinary counter-cyclical adjustment to counter-cyclical + cross-cycle, indicating that the economy is moving away from strong stimulus dependence and strengthening the stability of the valuation system. 3. BOC International: A-shares are in the "bull market continuation" phase, focusing on technology and "anti-internal circulation" themes BOC International believes that A-shares are still in an upward channel. Firstly, the smooth transition from "stabilizing" to "improving quality" in future domestic economic policies will create a stable macroeconomic expectation environment for the market. As policy expectations stabilize, market momentum will gradually shift from being primarily driven by policy and funds, to being driven by fundamental earnings. A-shares are currently in the "bull market continuation" phase, with long-term capital entering the market in 2026 and other policy positives still expected. The warming of the price center, domestic demand recovery, and profit growth brought about by industrial innovation will help the market move towards a comprehensive bull market. In the short term, the selection of the next Federal Reserve Chairman and the implementation of domestic monetary and fiscal policies will be the focus of market attention at the end of the year and early next year. With the easing of geopolitical risks and the gradual implementation of Sino-US policy expectations, A-share year-end positioning rally is expected to start early next year. Focus on the technology and "anti-internal circulation" themes. This article is reprinted from "Tencent Selection Stocks." Editor: Liu Jiayin.