CSI 300 Falls 1.08%
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This week, the A-share market continued its upward trend, with overall market sentiment remaining favorable. Investors are advised to focus on structural opportunities. The SSE Index(000001) dipped slightly by 0.18% but remains above key moving averages, just 1.08% away from its 52-week high—indicating a resilient consolidation pattern within a strong uptrend. Trading volume was 2.87% below its 50-day moving average.The CSI 300(000300) declined by 1.08%, facing pressure near short-term moving averages, reflecting increased volatility among large-cap blue-chip stocks. The Shenzhen Index(399001)fell 1.4%, while the ChiNext(399006) dropped sharply by 3.01%, underscoring notable adjustment pressure in growth-oriented sectors. Meanwhile, the Hang Seng Index(HSI) rose 1.26%, consolidating near its year-to-date highs with relatively ample liquidity in the Hong Kong market. In the U.S., the Nasdaq Composite(0NDQC) slipped 0.58%, while the S & P 500 Index(0S&P5) edged up modestly by 0.13%.
On the macroeconomic front, U.S. EIA crude oil inventories surged to 6.413 million barrels—far exceeding the market forecast of 1.96 million barrels—signaling sustained global oil supply abundance and downward pressure on near-term oil prices. Bitcoin broke below the $100,000 mark, highlighting ongoing downside risks in high-beta assets. U.S. equities face tightening liquidity conditions and potential forced liquidation risks from major short positions. Moody’s chief economist noted that AI’s contribution to U.S. economic growth remains limited, with a high probability of recession in 2026. Given the Federal Reserve’s constrained policy space, expectations for rate cuts remain low. Investors should closely monitor shifts in U.S. Treasury yields and dollar liquidity, which significantly influence global capital flows.
Domestically, both policy signals and economic data have been broadly positive. The People’s Bank of China’s Q3 Monetary Policy Implementation Report reaffirmed a stance of “moderately accommodative” policy to ensure reasonable and ample liquidity. By end-October, outstanding aggregate social financing grew 8.5% year-over-year, with loan rates remaining at historically low levels—evidence of healthy financial expansion and sufficient funding support for both the real economy and capital markets. October’s CPI turned positive after months of decline, signaling stabilization and recovery in consumer prices, aligning with medium- to long-term inflation targets.
On the investment side, the State Council released Measures to Further Promote Private Investment, complemented by 13 concrete initiatives to remove barriers to private capital deployment. These measures are expected to effectively unlock private investment and drive sustained expansion in emerging industries and infrastructure. The National Development and Reform Commission (NDRC) has now recommended 105 REITs projects, projected to catalyze over RMB 1 trillion in total investment—potentially accelerating capitalization in infrastructure and urban renewal sectors.
In technology and energy transition, the National Energy Administration emphasized active integration between new energy and emerging industries. Joint guidelines from two key ministries target the completion of a new power system—capable of accommodating a high share of renewable energy—by 2035. This long-term roadmap will benefit the entire value chain of photovoltaics, energy storage, wind power, and power equipment. The Secretary-General of the China Photovoltaic Industry Association highlighted rationalized industry competition and supportive policies, which favor high-quality firms in securing long-term orders and sustainable earnings growth. Additionally, significant progress in domestic 6G R&D underscores strengthening investor confidence in next-generation technologies, providing fundamental support for related tech sectors.
Sector rotation this week saw clear capital concentration into top-performing segments. Diversified Operations(G9900IG.CN) surged 9.87%, driven by improved profitability among service-oriented conglomerates and growing market interest in diversified business models. Bldg-Wood Prds(G2400IG.CN) rose 6.53%, supported by demand from existing-home renovations, home decoration, and rising upgrade-driven consumption. Leisure-Lodging(G7011IG.CN) gained 6.31%, reflecting a clear recovery trend in consumer-facing services. Overall, capital allocation continues to favor policy-backed themes, consumption upgrading, and multi-service business models, resulting in pronounced structural divergence across sectors.
The TOP33 portfolio faced broad pressure this week, posting an average decline of 1.64%, with only 12 gainers versus 21 decliners. The top performer was Tibet Huayu Mining ‘A'(601020), surging 19.72%. It belongs to the Mining–Metal Ores sector and boasts an O’Neil Score of 85, EPS Rating of 99, RS Rating of 95, Acc/Dis Rating of A+, and an industry strength rank of 5—well within the preferred top-40 range. The company operates two producing mines (Zhaxikang and Lawu) and holds overseas projects, with ore processing capacity leading regional peers. Its strategic expansion along the Belt and Road Initiative reinforces a clear earnings trajectory and growth logic. This week’s performance exemplifies how high-quality names in top-ranked industries can demonstrate resilience and capture structural upside even amid market headwinds.
In summary, market leadership remains concentrated in policy-driven structural themes and high-conviction stocks with strong institutional interest. Investors are encouraged to prioritize stocks with high O’Neil Scores, strong relative strength (RS Ratings), and industry strength ranks in the top 40. Combining these metrics with favorable Accumulation/Distribution Ratings (C or better) can help identify near-term trading opportunities. Additionally, watch for potential rotation into energy, photovoltaics, energy storage, and housing-related services.
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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on November 14, 2025