The A-share market showed an upward trend this week (November 24–28), with trading volume remaining above 1.5 trillion yuan. The Shanghai Composite Index rose 1.4% to close at 3,888.60 points, while the Shenzhen Component Index gained 3.56%. The ChiNext Index outperformed with a 4.54% increase, marking the highest weekly gain among major A-share indices.
Most sectors under the Shenwan industry classification posted gains. The communications sector led with an 8.7% surge, followed by electronics (+6.05%). Other strong performers included diversified industries, media, and light manufacturing, all rising over 4%. Social services, machinery, power equipment, and retail also advanced, each climbing more than 3%.
In terms of capital flows, net outflows from A-shares totaled 27.04 billion yuan this week. Sectors like computers, media, defense, pharmaceuticals, and non-bank finance saw outflows exceeding 3 billion yuan each. Conversely, electronics, communications, and automobiles attracted net inflows of over 1 billion yuan.
**Market Sentiment and Positioning** A recent survey involving 2,700 participants revealed mixed sentiment. While 22% of respondents increased their positions this week, 19% reduced exposure, and 6% liquidated holdings. About 53% maintained their current positions.
Full-capacity and zero-capacity allocations each declined by 2 percentage points to 37% and 5%, respectively. Meanwhile, mid-range positioning (50%–100%) rose 3 percentage points to 31%.
**Profitability and Outlook** Only 48% of investors reported profits this week, with 40% seeing gains under 10% and 8% exceeding 10%. Losses were reported by 52%, including 35% with declines below 10%, 10% between 10%–20%, and 8% over 20%.
Opinions on next week’s trajectory were divided: 36% expect sideways movement below 4,000 points, while 35% predict a breakout above 4,000 with sustained growth. Another 16% foresee a temporary breach of 4,000 before a pullback—bringing total bullishness to 50%.
Long-term optimism persists, with 42% forecasting the Shanghai Composite at 4,000 points and 37% targeting 5,000. Risk perception varied: 54% view the market as moderately risky, 15% as high-risk, and 24% as low-risk.
**Tech Sector in Focus** Investor confidence in tech surged 13 percentage points to 47%, making it the most favored sector for next week. In contrast, defense and new energy saw declines of 5 and 4 percentage points, respectively.
Regulatory support is strengthening, as highlighted at a recent inter-ministerial meeting on tech finance. Authorities emphasized advancing policies to foster innovation-driven growth in 2025.
Analysts note that November’s tech sector correction reflects shifting risk appetite but recommend seizing opportunities amid high industry momentum. Macroeconomic policies aimed at boosting domestic demand remain another key theme.
*Investment carries risks; decisions should be based on independent analysis.*
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