Highlights of the securities morning meeting | A shares trend remains unchanged, focusing on three main investment themes.

Yesterday, the market fluctuated throughout the day, with significant differentiation between the major indexes. The Shenzhen Component Index and the ChiNext Index opened high and closed low, both falling by over 1% during trading. The total turnover of the Shanghai and Shenzhen stock markets was 3.25 trillion, an increase of 163 billion compared to the previous trading day. In terms of market trends, over 3700 stocks fell. Looking at the sectors, the non-ferrous metals sector saw the highest increase, with the precious metals concept leading the gains. Stocks such as Sichuan Gold, Beijing Xiaocheng Technology Stock, Hunan Gold Corporation, and Shengda Resources all hit their daily limits, with Zijin Mining Group hitting a historical high. The oil and gas sector also performed well, with CNOOC Limited reaching a historical high, and Geo-Jade Petroleum Corporation hitting its limit for the third consecutive day. The solar energy sector was active, with stocks like Ming Yang Smart Energy, Shenzhen Topraysolar, and GCL System Integration Technology hitting their limits. The chemical industry sector saw a rebound, with stocks like Hongbaoli Group Corporation and Jiangsu Chengxing Phosph-Chemicals hitting their daily limits. On the downside, commercial aerospace and semiconductor equipment sectors saw the largest declines. As of the closing, the Shanghai Composite Index fell by 0.09%, the Shenzhen Component Index fell by 0.85%, and the ChiNext Index fell by 0.91%. At the morning meeting of securities firms today, Huaxi believes that the trend remains unchanged, focusing on three main allocation themes; CITIC SEC believes that the home appliance sector will be under pressure in the fourth quarter, and attention should be paid to the improvement in performance brought about by the national subsidy connection; China Securities Co., Ltd. believes that the lithium-ion inflation has begun, with a clear trend in prices in the capacity-constrained segment. Huaxi: The trend remains unchanged, focusing on three main allocation themes From a medium- to long-term perspective, comparing this round of market to previous bull markets in A-shares, the current market is still in the middle stage, with the "slow bull" trend expected to continue. Comparing the high points of the bull markets in 2007, 2015, and 2021, the Shanghai and Shenzhen 300 Index reached the range of 5300-6000 points, with the current index point only in the middle. From the perspective of the price ratio of major asset classes, the risk premium of the Shanghai and Shenzhen 300 Index is 5.27%, and in the past decade, the risk premium has decreased to the level of 2.5% in several bull markets. From the perspective of market value, the total market value of A-shares divided by M2, and the proportion of free float market value to residents' deposits are also near historical averages, indicating that there is still ample space and opportunities in the market. In terms of industry allocation, it is recommended to focus on: 1) the expansion of the technology industry market, such as AI computing power, AI applications, Siasun Robot & Automation, solar energy in space, storage, Hong Kong Internet, etc.; 2) benefiting from the "anti-enclosure" and price increase directions, such as the chemical industry, non-ferrous metals, etc.; 3) industries with high growth in annual report performance forecasts, such as electronics, machinery and equipment, medicine, etc. CITIC SEC: The home appliance sector will be under pressure in the fourth quarter, focus on the improvement in performance brought about by the national subsidy connection In 2026, adjustments to the national subsidy policy for home appliances will focus on core categories and the rural market. The policy covers 6 core categories of large appliances, subsidies for level 1 energy efficiency, and a subsidy ratio of 15%. The first batch of 62.5 billion yuan in quotas was issued ahead of time, covering the entire country, with a key focus on the rural market. JD.com has invested 30 billion yuan to implement "three exemptions and four unlimited", expecting to add coverage for 30-40 million rural residents, making the rural market the main incremental scene in 2026. China Securities Co., Ltd.: The lithium-ion inflation has begun, with a clear trend in prices in the capacity-constrained segment, making it difficult to grasp the upper limit Given that this round of lithium-ion cycle is highly similar to the previous photovoltaic cycle in terms of nature and plot interpretation up to now, this report systematically reviews the large photovoltaic cycle as a reference for this round of lithium-ion cycle. The main conclusions are threefold: 1. The market often talks about rising prices affecting demand, but in reality, it has never affected it, and the final outcome is a simultaneous rise in quantity and price, with profits from the upstream to downstream power stations, and inflation throughout the entire industry chain. 2. The price of the capacity-constrained segment is the wind vane for demand, and the eventual price drop is due to capacity expansion rather than demand contraction. 3. From the perspective of stock prices: After the bottom valuation rises, the market may have doubts about demand, leading to temporary entanglement in the sector, but ultimately, as the quantity-price rises in the industry chain, stock prices will follow suit, with the segments with large price elasticity performing the best. This article is reprinted from "Cailianshe", GMTEight Editor: Huang Xiaodong.