Market Overview On Friday (November 21), the A-share market opened lower and experienced wide fluctuations. After a low opening, the indices declined in early trading, with the Shanghai Composite Index finding support near 3,841 points. In the afternoon, the market remained volatile. Sectors such as shipbuilding, cultural media, and software development performed relatively well, while batteries, energy metals, photovoltaic equipment, and fertilizers underperformed. The Shanghai Composite Index exhibited a broad oscillation pattern throughout the day. The ChiNext Index also declined, underperforming the main board.
Outlook and Investment Recommendations The A-share market showed a downward trend with significant volatility on Friday. The Shanghai Composite Index stabilized near 3,841 points after an early dip, while sectors like shipbuilding, cultural media, and software development outperformed. Conversely, batteries, energy metals, photovoltaic equipment, and fertilizers lagged. Currently, the average P/E ratios of the Shanghai Composite and ChiNext indices stand at 16.14x and 47.93x, respectively—above the three-year median—making them suitable for medium- to long-term positioning. Trading volume reached 1.98 trillion yuan on Friday, also above the three-year median.
The A-share market is in a consolidation phase, preparing for next year’s opportunities. The Shanghai Composite Index is likely to stabilize around 4,000 points, with sector rotation continuing between cyclical and tech stocks. October’s financial data indicates a sustained shift in household asset allocation toward financial assets, providing incremental capital for the market. In the near term, steady consolidation is expected. Investors are advised to maintain reasonable positions, avoid chasing rallies or panic selling, and closely monitor macroeconomic data, overseas liquidity shifts, and policy developments to adjust strategies accordingly. Short-term opportunities may arise in shipbuilding, cultural media, banking, and software development.
Risk Warnings: - Unexpected overseas recession impacting domestic economic recovery. - Slower-than-expected domestic policy or economic recovery. - Macroeconomic disruptions beyond expectations. - Unexpected policy shifts. - Changes in international relations affecting economic conditions. - Tighter-than-expected overseas liquidity conditions. - Increased volatility in global markets.
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