A-shares closing review | Shanghai index fell by 0.40%, banks supported the market! Bank of China surged by 4% to a new high.

Today, the market opened high and closed low, with sectors such as Hainan, lithium batteries, and banks leading the gains. The market had a total turnover of about 1.7 trillion RMB, slightly lower than the previous trading day, with over 3,800 stocks falling in both markets. In terms of sector performance, the banking sector continued to be strong, with Bank Of China rising 4%, reaching a historical high, and Industrial and Commercial Bank of China also hitting a new high. Stocks like Postal Savings Bank Of China, China Everbright Bank, and China Construction Bank Corporation also saw significant gains. Regarding the stock price movement, a Bank Of China staff member stated that there have been no major changes in the company's fundamentals, and they are currently monitoring the stock price fluctuations. The increase in stock price is attributed to the overall rising trend of the banking sector, not just the individual performance of the bank; additionally, the company's Q3 financial report showed strong operating data, which supports the stock price increase. Furthermore, the Hainan sector became active again, with Hainan Haiyao increasing for the third consecutive day; the lithium mining sector continued to show strength, with companies like BGT Group Co., Ltd., Chengxin Lithium Group, Fulin Precision, and Ganfeng Lithium Group also rising. In the real estate sector, the gains increased in the afternoon, with companies like 5i5j Holding Group, Shenzhen SDG Service, Shenzhen Special Economic Zone Real Estate & Properties, and China Vanke Co., Ltd. rising. There was also activity in the computing power hardware stocks, with SHENZHEN JOVE ENTERPRISE LIMITED hitting the daily limit, and Optowide Technologies rising over 8% to reach a new high. In terms of declines, sectors like tourism, hotels, pre-packaged meals, and dairy products continued to weaken; AI e-commerce, film and television media, and education applications also saw declines. Most military stocks were in the red, pharmaceutical stocks were lackluster, and sectors like coal, oilfield services, and power equipment were relatively weak. As for specific stocks, Cowealth Medical China resumed trading and hit the daily limit again, recording 13 consecutive days of growth with a cumulative increase of over 290%. The company clarified that there was no additional positive information and they had no undisclosed news. They were not able to confirm whether hitting the limit again after resumption would trigger a second suspension. Regarding the speculation about the role of company names in stock price movements, the staff member refrained from commenting. Looking ahead, Huatai stated that considering the elasticity of A-share profits, policy directions, and overseas trends, the market's breakthrough momentum may still need to accumulate. From a sector perspective, there is still room for short-term interpretation of the logic behind the rebound in low-priced sectors. In terms of individual stocks, 1453 stocks in both markets rose, while 3850 fell, and 148 remained unchanged. There were 49 stocks that hit the daily limit and 25 stocks that hit the lower limit. At the close, the Shanghai Composite Index fell by 0.40% to 3931.05 points, with a turnover of 711.4 billion RMB; the Shenzhen Component Index fell by 0.76% to 12980.82 points, with a turnover of 996.9 billion RMB. The ChiNext Index fell by 1.12% to 3042.34 points. Capital Flow Today, major funds focused on chip-related industries, banks, and communication equipment sectors. The top stocks in terms of net inflows included Founder Technology Group, Shanghai Dazhong Public Utilities, and Xinyisheng. News Overview 1. Trump plans to launch the "Genesis Mission" program to advance the development of AI in the United States According to a report from Bloomberg cited by Global Times, a U.S. Department of Energy official disclosed on the 19th that U.S. President Trump plans to sign an executive order at the White House next week to launch a program called the "Genesis Mission," aimed at advancing the development of artificial intelligence in the United States. The program may include instructions for national laboratories to do more work in AI technology and involve public-private partnerships. 2. Resumption followed by another limit-up! Cowealth Medical China soared nearly 300% in 15 days, company responds After a 3-day trading suspension check, Cowealth Medical China resumed trading on November 20 and was once again sought after by investors, hitting the daily limit. As of now, the stock is at 26.18 RMB per share. Within 15 trading days, it has hit the limit-up 13 times, with a cumulative increase of 291.92%. The company stated that there was no additional positive information and no undisclosed news. Regarding the possibility of a second suspension triggered by hitting the limit again after resumption, the company was not able to provide a clear answer. As for the widely debated theory of "investing based on company names," the staff member did not comment. 3. November LPR quotes: 5-year and 1-year rates remain unchanged The loan market quoted interest rates (LPR) for November were as follows: LPR for maturities of 5 years and above is 3.5%, unchanged from the previous month. The 1-year LPR is 3%, also unchanged. Experts believe that considering the effective implementation of new policy financial instruments, a 500-billion structural limit, and significant projects during the "15th Five-Year Plan," the pressure on achieving the 5% GDP growth target for the whole year is manageable. With a steady and moderate rise in prices, there is minimal need for a significant tightening of monetary policy in the short term. Market Prediction 1. Guotai Junan Securities: The market is still on a positive trajectory in the medium and long term, focus on technology and supplementary directions The A-share market continues its consolidation pattern, with rapid rotation between sectors. The technology sector, which had seen significant gains previously, is now in a consolidation phase, and funds are starting to move towards themes like lithium batteries and electrolytes. The consumer sector is also benefiting from policy support, but the sustainability of these themes remains questionable. As the year-end approaches, institutional allocation may become more balanced as they prepare for the economic direction in the coming year. The year-end market is expected to be dominated by a consolidation structure, and the signals for positive improvements in the fund's liquidity are likely to continue. With clear progress in the implementation of subsequent policies and the expected rise in prices, thematic logic of non-competition sectors is apparent, and the technology theme focuses on the catalyzation of supplementary and industrial trends. 2. Shenwan Hongyuan Group: Currently in the high zone of "Bull Market 1.0" phase The current market is in the high zone of the "Bull Market 1.0" phase, so be prepared for high-level oscillating markets. Based on short-term cost-effectiveness, focus on small-scale oscillations: technology growth, with insufficient long-term cost-effectiveness but high short-term cost-effectiveness; cyclical, still in the low valuation area in the long term, but lacking short-term cost-effectiveness. Institutional investors have been repositioning and reducing their investment styles, indicating that the overall market and technology growth have limited room for adjustments in the short term. We believe that there is still a rebound opportunity for technology growth before the spring of 2026. We believe that the technological structural bull market in 2025 is part of the Bull Market 1.0 phase, with the possibility of a temporary high point in the spring of 2026. The trend of the technology industry needs to wait for a new round of fermentation. Referring to the historical experience of the mobile Internet, there is typically a 3-4 quarter gap between two waves of industry trends. 3. Huatai: The momentum for breakthroughs may still need to accumulate, and the crowding in the AI industry chain has fallen to a low level The recent A-share market has been slightly fluctuating, with an increasing number of investors adopting a wait-and-see approach. The market is watching for when the "main uptrend" will occur. Considering the elasticity of A-share profits, policy directions, and overseas trends, the momentum for market breakthroughs may still need to accumulate. Looking ahead, investors can focus on three main themes: first, the crowding in the AI industry chain has dropped to a low level since July, so look for undervalued targets in areas like Horizons Technology, domestic computing power, AI edge, and applications; second, sectors like engineering machinery, textile manufacturing, photovoltaic equipment, general equipment, railways, highways, building materials, and mass consumption have potential for improved performance; and third, within the lithium battery industry chain, consider focusing on less crowded directions like fluoride chemical. This article was originally published on Tencent Stock Selection and edited by GMTEight: Liu Jiayin.