This week is a week packed with significant macroeconomic data. First, the financial data that the central bank should have released last week will be announced. On Tuesday evening, the United States will release the CPI data for October, and on Wednesday, China will announce economic data for October, including retail sales. On Wednesday evening, the U.S. will release the PPI data for October. In addition to these major macroeconomic data, the APEC Economic Leaders' Informal Meeting will be held in San Francisco, USA, from November 15th to 17th, which is an even more significant event. We have listed these events in our pre-market "Gudong Investment Research" and provided a brief analysis.

The driving force behind the global stock market rebound in the past two weeks was the peak and subsequent decline of the U.S. ten-year Treasury yield. However, the yield has now stabilized, and the market is waiting for new momentum, looking to see if this week's U.S. CPI data or the meeting between the Chinese and American leaders will bring any surprises.

For the A-share market, it has entered another period of low heavyweights and rapid sector rotation, a kind of "garbage time." Large funds are lying flat, while speculative capital is more active, and trading volume has significantly contracted.

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There are mainly two reasons for this: Fundamentally, exports and CPI in October were both lower than expected, and it is anticipated that data such as social financing and retail sales will not be strong either, indicating that domestic economic momentum remains insufficient. The economy weakened again in October, and there is no clear new policy expectation, leading to a lack of market confidence. From a capital perspective, Northbound capital has been selling for five consecutive trading days, and the A-share market is once again caught in a game of existing capital. Unfortunately, with insufficient incremental capital in the A-share market, foreign capital has the strongest marginal pricing power.

Although after last Friday's market close, the China Securities Regulatory Commission and the Shanghai and Shenzhen stock exchanges further strengthened the systems for IPOs and securities lending, these are all medium and long-term benefits and have little short-term impact. It must be said that this bear market is indeed forcing the management to deepen the reform of the capital market, which is beneficial for the medium and long-term healthy development of the capital market. In this sense, it can be considered a "blessing in disguise."

Today, after the A-shares opened higher, they experienced a dive, with foreign capital once selling off more than 3 billion. However, they rebounded at noon, and the selling by foreign capital narrowed, with all three major indices turning red. By the close, the Shanghai Composite Index rose by 0.25%, and the ChiNext Index rose by 0.20%. After the A-shares closed, the Hong Kong stocks surged at the end, with the Hang Seng Index closing up by 1.30%, and the Hang Seng Technology Index surging by 2.28%.

Looking at the industry breakdown, sectors such as national defense, military, computers, steel, telecommunications, and social services led the gains, while home appliances, beauty care, food and beverages, pharmaceuticals and biotechnology, and banking sectors led the declines, with Huawei's computing power and HarmonyOS performing the strongest.Here is the translation of the provided text into English:

Specifically, looking into the details:

Huawei HarmonyOS Concept Takes Off

On November 12, 2023, domestic media reported that recently, several internet companies including NetEase and Meituan have posted job openings related to the HarmonyOS system, accelerating the transformation towards the development of native HarmonyOS applications. Previously, there were reports that Android versions would no longer be compatible with HarmonyOS. According to statistics from professional institutions, from January to October 2023, the average monthly recruitment salary for HarmonyOS-related positions reached 17,537 yuan, exceeding the market average. Moreover, programmers who switch to HarmonyOS development-related work can see a salary increase of 30% to 50%.

Stimulated by this news, the Huawei HarmonyOS concept sector has exploded, with SoftPower Dynamics hitting the daily limit up. In addition, the better-than-expected OpenAI conference, NVIDIA's launch of a cut-down version of GPU, and other factors have stimulated the computing power sector, leading to significant gains in CPO, cloud computing, and other related sectors.

Photolithography Machine Concept Rises and Falls

The most discussed topics over the weekend were photolithography machines and the Chinese online application ReelShort. Recently, CITIC Construction Investment disclosed a report on the progress of the initial public offering and listing guidance work of Shanghai Micro Electronics. It is known that Shanghai Micro Electronics is positioned as a "market-oriented company with a national mission." Since the "Fifteenth Five-Year Plan," it has undertaken several national IC front-end photolithography machine development projects. Under the influence of special technologies, Shanghai Micro Electronics has become the only high-end photolithography machine supplier in the country capable of manufacturing a variety of products for different fields and product lines.

However, due to various rumors in the semiconductor sector last week, market expectations were high, and today the photolithography machine concept sector experienced a rise and fall, with West Long Science hitting the daily limit up.

Military Industry Soars at Midday

(Note: The translation provided is a direct and accurate representation of the original text, with no additional explanation or interpretation.)Today, during the midday trading session, the military industry sector saw a significant surge, with shares of AVIC Hongdu Aviation, Lei Ke Defense, and Zhenxin Technology hitting the upper limit. According to the perspective of Minsheng Securities: 2023 is a transitional year between old and new cycles, with the military industry currently in the middle of the "14th Five-Year Plan" and at the transition stage of a new round of market movements. After the mid-term adjustments, new batch procurements are about to commence, and the military industry may once again enter a phase of rapid growth. In October, some companies announced large contracts, which may indicate that orders are recovering and the situation is becoming increasingly clear.

Finally, the strength at the end of the Hong Kong stock market session is most likely due to Sino-American relations. The rumors we've heard suggest that there are favorable developments regarding tariffs. We will patiently wait for further catalysts. Given the scale of this situation, it is expected that some results will emerge.