Closing丨The three major indexes collectively rose, and the Chinese medicine sector rose in the afternoon

On November 17, the three major A-share indexes collectively rose. As of the close, the Shanghai Stock Exchange Index rose 0.11%, the Shenzhen Component Index rose 0.25%, and the ChiNext Index rose 0.43%.

Wind data shows that overall stocks rose more than they fell, with more than 3,700 stocks rising in the two cities.

On the market, sectors such as traditional Chinese medicine, advanced packaging, precious metals, auto parts, and industrial motherboards rose; sectors such as real estate services, computing power leasing, banks, and Huawei Shengteng fell.

Specifically, the traditional Chinese medicine sector rose in the afternoon. As of the close, Panlong Pharmaceutical, Jianmin Group, Mayinglong, Jiangzhong Pharmaceutical, etc. rose by more than 5%.

The advanced packaging sector performed actively, with Huahai Chengke, Zhongfu Circuit and other stocks hitting their daily limit, and Yishitong rose by more than 15%.

The computing power leasing sector made a correction, with Huina Technology, Stech, and Zitian Technology falling by more than 5%.

【Capital flows】

Wind data shows that northbound funds sold a net 2.859 billion yuan throughout the day, of which 2.048 billion yuan was sold on the Shanghai Stock Connect and 811 million yuan was sold on the Shenzhen Stock Connect.

Main funds continued to see net inflows into the automobile, electronics, media and other sectors at the end of the day, and net outflows from the banking, real estate, food and beverage and other sectors.

Looking specifically at individual stocks, Shengguang Group, Cambridge Technology, and Zhejiang Shibao received net inflows of 1.406 billion yuan, 848 million yuan, and 675 million yuan.

In terms of net outflows, Kweichow Moutai, Longgao Holdings, and Zhangjiang Hi-Tech were sold for 318 million yuan, 283 million yuan, and 267 million yuan respectively.

[Institutional Perspective]

Guosheng Securities:In the short term, the index’s turbulent consolidation may continue, and time is exchanged for space to digest the resistance in the 3080-3100 range above. The themes rotate quickly under the game of existing funds. The persistence and diffusion of hot spots on the market are average. The market may be affected by the absence of the main line and the early stage. The accumulation of rebound profits is likely to be consolidated, so focus on the support near 3030 points below. However, as the positive factors gradually come to fruition, the market’s mid-term rebound is still there, and the index’s volatile correction may be an opportunity to position individual stocks on dips. Strategically, it is recommended to focus on two main lines: 1. Low valuations, improved policy expectations, coupled with the fall in U.S. bond yields, and allocation opportunities for biomedicine (in the direction of innovative drugs); 2. High industry prosperity coupled with Tes Catalyzed by events such as the upcoming delivery of LaPica and the debut of Xiaomi’s new car, there are configuration opportunities in the direction of the automotive industry chain.

Guojin Securities:The general pattern of relatively loose coal supply and demand in 2023 has not changed. With coal prices declining, thermal power performance will see substantial improvements. It is recommended to pay attention to: leading companies with high-quality thermal power assets and active expansion of new energy power generation; actively assuming the task of ensuring supply within the province. A leading company that is expected to revalue its assets.

China Galaxy Securities: In the context of the continuous intensification of policies such as Digital China and the continuous promotion of new AI applications, the new infrastructure of the digital economy is expected to consolidate and help upgrade the computing power network, and the communications + new infrastructure sector is expected to be the first to be revised upward. The recovery of the optical network industry chain, which is the cornerstone of ICT, has catalyzed the further growth of demand for optical modules, temperature control and energy saving. 5G application of industrial Internet is also the focus of future policies and needs. High prosperity combined with low valuation is the key direction of stock selection.