A-share market closing review | Innovation and entrepreneurship soared! Technology returns to the forefront.

Today, the market surged strongly, with the Shanghai Composite Index breaking through the range it has been building since August 25th, hitting a new high in a decade, and technology stocks returning to the forefront, driving the innovation index collectively higher! In terms of news, the communique of the Fourth Plenary Session of the Central Committee was released, proposing to accelerate the high-level self-reliance and self-strengthening in technology, build a strong domestic market, and expand high-level opening to the outside world. BOC International analysis stated that the direction of new quality productivity is likely to become the policy focus and main funding line for the next five years. On the market, the storage chip concept was active, with stocks like Guangdong Kingshine Electronic Technology, Winnovation Culturaltainment Development hitting the limit up, while Xi'An Xice Testing Technology, Shenzhen Techwinsemi Technology followed suit; the commercial space concept rose, with Beijing Aerospace Changfeng, Aerospace Hi-Tech Holding Group hitting the limit up, and FORSTAR following; solid-state battery stocks fluctuated higher, with Jiang Su Alcha Aluminium Group hitting two consecutive boards, Sichuan Yahua Industrial Group, Shandong Boyuan Pharmaceutical & Chemical following suit; computing power hardware stocks fluctuated stronger, with Shengyi Electronics hitting the limit up, Hubei DOTI Micro Technology, EverProX Technologies following suit. In terms of declines, the coal concept, film and television industry, and ice and snow industry sectors saw a pullback. In terms of individual stocks, the stock price of Innolight broke through the 1500 yuan mark again, with Zhongji Innolight soaring over 10%, hitting a new historical high. By the close, both markets closed higher, with the Shanghai Composite Index up 0.71% at 3950.31 points, with a turnover of 858.5 billion yuan; the Shenzhen Component Index rose 2.02% to 13289.18 points, with a turnover of 110.39 billion yuan. The Growth Enterprise Index rose 3.57% to 3171.57 points. In the market, 3028 stocks rose, 2274 fell, 138 remained unchanged, with 72 stocks hitting the limit up and 11 hitting the limit down. Looking ahead, CMSC stated that during the period until the draft is issued, it is necessary to focus on four major tracks such as commercial aerospace. Capital flow Today, main funds flowed into the semiconductor, consumer electronics, components, communications equipment, battery industries; and flowed out of the liquor II, chemical pharmaceutical, coal mining, precious metals, general retail industries. Headline review 1. Central Committee News Conference: China will rebuild a high-tech industry in the next 10 years The Central Committee of the Communist Party of China held a press conference this morning to introduce and interpret the spirit of the Fourth Plenary Session of the Twentieth Central Committee. Zheng Zhajie, Secretary of the Party Committee and Director of the National Development and Reform Commission, introduced the Proposal of the Central Committee of the Communist Party of China on Formulating the Fifteenth Five-Year Plan for National Economic and Social Development, which proposes to create emerging pillar industries, accelerate the development of strategic emerging industries such as new energy, new materials, aerospace, and low-altitude economy, which will give rise to several trillion-dollar markets. The Proposal also proposes to plan ahead for future industries, promoting quantum technology, biotechnology manufacturing, hydrogen and nuclear fusion energy, brain-machine interfaces, embodied intelligence, and sixth-generation mobile communications as new economic growth points. These industries will gather momentum in the next 10 years to rebuild a high-tech industry in China. 2. Ministry of Commerce: The first four rounds of economic and trade consultations fully demonstrate that China and the U.S. can find ways to address each other's concerns Wang Wentao, Party Secretary and Minister of Commerce, stated that China, as a responsible major country, has always opposed "decoupling" and firmly maintained the security and stability of the global production and supply chain. The first four rounds of China-U.S. economic and trade consultations have fully demonstrated that China and the U.S. can find ways to address each other's concerns and find the right way to coexist, promote the healthy, stable, and sustainable development of China-U.S. economic and trade relations. 3. Average position of stock private equity at 79.68%, near one-year high Data released by Private Placement Ranking Network on October 24 showed that as of October 17, the average position of domestic stock private equity rose to 79.68%, up 0.55 percentage points from the previous week, reaching a near one-year high. From the trend perspective, since August this year, the average position of stock private equity has accumulated an increase of 5.75 percentage points, indicating a significant trend of additional positions. Market outlook 1. BOC International: New quality productivity direction may become the policy focus and funding main line for the next five years BOC International pointed out that in the short term, the resonance between policy bottom and economic bottom is forming, and the continuous force of macro policies may support the upward shift of the A-share operating center. In the medium term, the subsequent launch of the "Fifteenth Five-Year Plan" is expected to reshape the investment theme and valuation system of the capital market. The direction of new quality productivity represented by technological self-reliance, green transformation, and upgrading of domestic demand may become the policy focus and funding main line for the next five years. Long-term capital, especially public funds, insurance funds, and national team funds, are expected to further converge in industries with strategic support value. 2. CMSC: During the period until the draft is issued, focus on four major paths CMSC pointed out that the one to two weeks after the meeting is the period of concentrated outbreak of the market, with multiple sectors rising. In the middle of the manufacturing sector, the probabilities and average returns of basic chemical industry, power equipment, and mechanical equipment are relatively high; in TMT, the electronic sector is relatively dominant; in consumption, social services and other sectors have relatively high probabilities and returns. From the perspective of the four major paths in this communique, it is necessary to focus on four major paths during the period until the draft is issued: the paths related to aerospace under the "space power" strategy (such as commercial aerospace, etc.); the paths related to the ocean (such as deep-sea technology, etc.); the paths related to foreign opening up after the significant improvement in the order of foreign opening writing (involving the Belt and Road Initiative, Hainan Free Trade Port, etc.); and the fields that may receive policy support in the fourth quarter. 3. Tianfeng: Currently, the valuation of cyclically sensitive sectors such as finance is at a historical low, with safety margin and switching space Tianfeng believes that against the background of the full realization of the annual profit-effect, the behavior of funds in the fourth quarter tends to be conservative, combined with policy expectations and resonance with earnings verification windows, the market style tends to shift stage-wise towards "profit quality + valuation safety" of large-cap blue chips. Overall, based on the 2005-2024 sample, micro-cap stocks have a leading win rate, but the differences between the styles are not significant, indicating the risk rebalancing characteristics that may exist in the fourth quarter. Considering the bull market trend of the overall market in the first three quarters similar to this year, further observations can indicate that the Shanghai and Shenzhen 300 and quality performance strategies have positive excess returns compared to the full A-share index in the fourth quarter, reflecting that the market tends to return to fundamental determinants towards the end of the year, shifting its focus from "high elasticity" to "high stability." This article is reproduced from "Tencent Self-selected Stocks", GMTEight editor: Liu Jiayin.