Huajin Securities: A-shares will continue to fluctuate and build a bottom in November; balance allocations between technology and CKH HOLDINGS low-valuation blue chips.

Huajin Securities released a research report stating that, looking back at history, the A-share market's November trend is mainly driven by factors such as policy and external events, fundamentals, and liquidity. At present, policy and external events in November may be relatively positive, and the economy and earnings may recover and rebound. Liquidity may remain accommodative. A-shares may continue to fluctuate and build a bottom in November, and the long-term slow bull trend remains unchanged. In terms of industry allocation, it is recommended to balance allocations in November between some technology and CKH HOLDINGS low-valuation blue chips. The main views of Huajin Securities are as follows: Looking back at history, the A-share market's November trend is mainly driven by factors such as policy and external events, fundamentals, and liquidity. (1) Since 2010, the Shanghai Composite Index has shown a mainly fluctuating performance in November each year, rising in 9 of 16 times and falling in 7. (2) The A-share market's November trend is mainly driven by factors such as policy and external events, fundamentals, and liquidity. First, policy and external events are the core factors affecting the A-share market's November trend: first, positive policy or external events may lead the Shanghai Composite Index to rise in November; second, policy tightening or negative external events may lead A-shares to weaken in November. Second, fundamentals are also an important factor affecting the A-share market's November trend: first, a rebound in economic indicators such as property sales or consumption growth may lead the Shanghai Composite Index to rise in November; second, better earnings growth in the following year may also lead the Shanghai Composite Index to rise in November. Third, liquidity also has a certain impact on A-share performance in November. At present, A-shares may continue to fluctuate and build a bottom in November. (1) Policy and external events in November may be relatively positive. First, policy in November may still be relatively positive. Second, external risks in November may still be limited: first, after the U.S. midterm elections, the U.S.-Iran conflict may further escalate; second, China-U.S. relations may remain stable in November. (2) The economy and earnings may recover and rebound in November. First, the economy may continue to recover modestly from a low level in November: first, property investment may remain weak in November, while growth in manufacturing investment and infrastructure investment may stabilize and recover somewhat; second, exports may continue to maintain relatively high year-on-year growth in November; finally, consumption growth may continue to stabilize and recover somewhat in November. Second, corporate earnings may continue to be in an upward trend in November. (3) Liquidity may remain accommodative in November. First, macro liquidity may remain accommodative in November: first, the Federal Reserve may find it difficult to raise rates consecutively in the short term; second, the domestic central bank may continue to increase fund injection in November. Second, stock market fund inflows may improve marginally in November. In November, the CKH HOLDINGS consumption style may be relatively favored, and the large-cap and small-cap styles may be relatively balanced. (1) In November, the CKH HOLDINGS consumption style may be relatively favored. First, looking back at history, the CKH HOLDINGS consumption style was relatively favored in November: from 2010 to 2025, among the 16 years, growth ranked first in November gains in 5 years and consumption in 4 years. Second, from the current perspective, the CKH HOLDINGS consumption style may be relatively favored in November this year: first, in November, growth industries are seeing improving prosperity, policy support, and accommodative liquidity; second, in November, consumption support policies may be continuously implemented, and amid low market sentiment, institutional fund allocation may favor stable consumption industries. (2) In November, the large-cap and small-cap styles may be relatively balanced. First, looking back at history, ultra-large caps and small and mid-caps were relatively favored in November: from 2010 to 2025, among the 16 years, ultra-large caps ranked first in gains in 6 years, small caps in 5 years, and micro caps in 3 years. Second, looking at this year, the large-cap and small-cap styles may be relatively balanced in November: first, liquidity may remain accommodative in November, which is favorable to the small and mid-cap style; second, technology growth may continue to be highly prosperous in November, which is favorable to the small and mid-cap style; third, the directions of policy support in November remain technology and consumption, which are favorable to small and mid-caps and large caps, respectively; fourth, domestic market sentiment is relatively weak in November, which may be favorable to the large-cap style. November industry allocation: It is recommended to balance allocations in oversold technology and CKH HOLDINGS low-valuation blue chips and other industries. (1) In November, some technology and CKH HOLDINGS consumption and other industries may be relatively favored. First, looking back at history, industries with improving prosperity and policy support performed relatively well in November. Second, from the current perspective, some technology and CKH HOLDINGS consumption industries may perform relatively well in November this year. (2) Among current growth secondary industries, semiconductors, other electronics, communications equipment and others have relatively high valuation cost-effectiveness. (3) It is recommended to allocate on dips in November: first, pharmaceuticals (AI drug discovery), Siasun Robot&Automation, media (AI applications, games), computers (AI applications), defense (commercial aerospace), electronics (semiconductors, AI hardware), communications (AI hardware), nonferrous metals, electrical equipment and new energy (AI power) and others with upward policy and industry trends; second, low-valuation blue-chip industries such as consumption, petrochemicals, power, and coal. Risk warning: Historical experience may not necessarily apply in the future, policy changes may exceed expectations, and economic recovery may fall short of expectations.