Market Performance - The A-share market experienced a strong upward trend on November 13, with the Shanghai Composite Index rising by 0.73%, reaching a ten-year high, while the Shenzhen Component Index increased by 1.78% and the ChiNext Index rose by 2.55% [1][2] - The total trading volume in the Shanghai and Shenzhen markets was 2.04 trillion yuan, an increase of 969 billion yuan compared to the previous trading day, with nearly 4,000 stocks rising across the market [1][2] Sector Performance - The lithium battery industry chain saw a significant surge, with CATL (Contemporary Amperex Technology Co., Limited) rising over 7%. Other sectors such as photovoltaic inverters, chemicals, non-ferrous metals, and electrical grid also showed strong gains [2] - Specific stocks in the lithium battery sector, including Kangpeng Technology, Tianci Materials, and Enjie Co., saw nearly 30 stocks hitting the daily limit up [2] Capital Flow - Main capital inflows were observed in the battery, non-ferrous metals, and semiconductor sectors, while there were net outflows from electronic components, securities, and electric power sectors [4] - Notable net inflows included 2.655 billion yuan into CATL, 1.808 billion yuan into Zhaoyi Innovation, and 1.686 billion yuan into InvoTech [4] Institutional Insights - Dongguan Securities indicated that the market is at a critical point of style switching, with policy support and liquidity easing providing backing for the market trend [5] - Galaxy Securities noted that the mid-term dividend strength of banks remains strong, highlighting the ongoing value of the banking sector [5]

Market Performance - The three major A-share indices collectively rose, with the Shanghai Composite Index increasing by 0.73%, the Shenzhen Component Index by 1.78%, and the ChiNext Index by 2.55% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets reached 20,657 billion yuan, an increase of 1,009 billion yuan compared to the previous day [1] - Nearly 4,000 stocks in the market experienced gains [1] Sector Performance - The battery industry chain, non-ferrous metals, organic silicon, Fujian, storage chips, photovoltaic equipment, and liquid cooling server sectors saw significant gains [1] - Conversely, the oil and gas extraction and services, as well as the transportation and banking sectors, underperformed [1] Notable Stocks - The battery industry chain experienced a strong rally, particularly in the electrolyte segment, with stocks such as Haike Xinyuan, Huasheng Lithium Battery, and Enjie Co., Ltd. hitting the daily limit [1] - Contemporary Amperex Technology Co., Ltd. (CATL) saw a peak increase of 9% during the trading session [1] - The non-ferrous metals sector also performed well, with stocks like Xingye Silver Tin and Guocheng Mining reaching the daily limit [1] - Alibaba Cloud-related stocks rose towards the end of the trading session, with Data Port hitting the daily limit and other stocks like Hangang Co., Ltd. and Tongniu Information also gaining [1] - Other sectors such as storage chips, photovoltaic equipment, and organic silicon also experienced intraday surges [1] - On the downside, oil and gas stocks faced localized adjustments, with companies like Quanyou Co., China National Offshore Oil Corporation, and Tongyuan Petroleum seeing declines [1] - The banking sector also retreated, with stocks such as Chongqing Rural Commercial Bank, Changsha Bank, and Postal Savings Bank of China experiencing drops [1]

Core Insights - The Chinese battery industry is experiencing a clear recovery point after nearly two years of adjustment, driven by strong demand from energy storage systems and commercial electric vehicles, leading to a comprehensive upward cycle in the industry [1] Group 1: Market Demand - Domestic energy storage battery sales reached 211 GWh in the first nine months of 2025, a year-on-year increase of 66%, with exports doubling to 71 GWh, reflecting robust market demand [2] - The growth in domestic demand is attributed to policy optimizations, including the cancellation of mandatory storage policies and the introduction of local independent storage subsidy policies, enhancing project investment returns [2] - New overseas energy storage orders for Chinese battery manufacturers reached 215 GWh, a year-on-year increase of 132%, with Europe, the Middle East, and Australia being the main growth sources [2] Group 2: Commercial Vehicle Growth - The commercial vehicle market has emerged as a significant growth driver, with battery installation for commercial vehicles reaching 92 GWh, a year-on-year surge of 136%, increasing its share of total electric vehicle battery installations from 11% to 19% [3] - The electricization of commercial vehicles is driven by improved supply-side discipline and price recovery, with leading battery suppliers nearing full production capacity [3] Group 3: Supply and Pricing Dynamics - The supply-side landscape is improving, with leading battery suppliers' capacity utilization nearing saturation and second-tier suppliers recovering to 50%-70% utilization [3] - The improvement in supply-demand dynamics has led to price increases across the battery supply chain, with battery cell prices rising by 3-4%, lithium carbonate prices up 14%, and prices for lithium iron phosphate and ternary cathode materials increasing by 9% and 19%, respectively [4] - Analysts expect the upward price trend to continue into the fourth quarter and next year, benefiting leading companies like CATL, Yunnan Enjie, and Ruipu Lanjun [4]

Group 1 - A-shares opened lower but rebounded strongly in the morning session, with significant gains in the new energy sector, including a 20% increase in Shangneng Electric and over 17% in Xinzoubang and Tianhua New Energy [1] - The National Energy Administration recently issued guidelines promoting the integrated development of new energy, aiming for enhanced reliability and competitiveness in the sector by 2030 [1] - The guidelines emphasize the importance of reducing reliance on the power system through comprehensive integration and expanding non-electric utilization of new energy [1] Group 2 - The photovoltaic ETF (159857) tracks the CSI Photovoltaic Industry Index, which selects up to 50 representative listed companies involved in the photovoltaic industry chain [2] - The new materials ETF (159703) follows the CSI New Materials Theme Index, selecting 50 companies in advanced steel, non-ferrous metals, chemicals, and other key strategic materials [2]

Core Viewpoint - The chemical sector is experiencing a significant rally, with major stocks and ETFs showing substantial gains, driven by a surge in lithium hexafluorophosphate prices and a mismatch between supply and demand [1][3]. Group 1: Market Performance - New Zhuo Bang stock increased by over 17%, while Enjie and Tianci Materials reached their daily limit, and Multi Fluor rose by over 9% [1]. - Chemical ETFs, including Chemical ETF, Chemical Leader ETF, and Chemical 50 ETF, have all risen by over 3.5%, with year-to-date gains of 38% [1][2]. - The estimated scale of Chemical ETF is 2.922 billion, with a year-to-date increase of 38.88% [2]. Group 2: Price Dynamics - The price of lithium hexafluorophosphate has surged, with some market quotes reaching 150,000 yuan per ton, doubling from mid-October [2][3]. - Manufacturers are reluctant to sell, with some halting external quotes and requiring cash payments or prepayments from smaller clients [3]. Group 3: Industry Outlook - The core reason for the price surge is a supply-demand mismatch, with explosive growth in downstream demand and a contraction in supply due to the exit of many small enterprises [3]. - Chemical ETFs focus on key sectors within the chemical industry, including chemical raw materials (28.7%), chemical products (25.1%), and agricultural chemical products (23.4%) [3]. - Analysts suggest that core chemical assets are likely to see profit and valuation recovery, as prices are at a low point and leading companies have strong safety margins [4]. Group 4: Future Trends - The chemical industry is expected to experience a bottoming out of most sub-sectors, with potential upward trends in certain areas due to reduced capacity growth and government policies [4]. - There is a growing emphasis on new materials and domestic production in response to international trade tensions and foreign monopolies in high-end materials [4]. - The industry is anticipated to transition from a cash-consuming model to one that generates significant cash flow, enhancing potential dividend yields [5].

Core Viewpoint - The solid-state battery sector is experiencing significant growth, driven by unexpected demand, leading to substantial stock price increases among key companies in the battery industry [1] Group 1: Market Performance - As of November 13, major companies such as Upstream Electric, New Energy, and Yiwei Lithium Energy saw stock price increases of over 10%, with Upstream Electric hitting a 20% limit up [1] - The Battery ETF (561910) surged by 6.62%, reaching a nearly three-year high with a half-day trading volume of 434 million yuan, surpassing the previous day's total [1] - The year-to-date increase of the Battery ETF's underlying index, the CSI Battery Theme Index, stands at 73.44% [1] Group 2: Demand and Growth Projections - Dongwu Securities' analyst, Yuan Qiaoyan, highlighted that the primary driver of the current battery price surge is demand exceeding expectations [1] - Future projections indicate that the industry could see a growth rate of 25%-30% due to multiple drivers, including energy storage, power batteries, and AI data centers [1] - Leading companies are currently valued at a price-to-earnings ratio of only 20 times their expected earnings for next year, suggesting significant potential for upward valuation adjustments [1] Group 3: ETF Composition and Trading Activity - The Battery ETF (561910) has seen a remarkable 634.89% increase in its share volume this year, with an average daily trading volume exceeding 150 million yuan [1] - The ETF's composition includes nearly 40% solid-state battery materials and about 60% energy storage, covering leading companies in solid-state battery materials, packaging, and equipment [1] - The ETF encompasses the entire battery industry chain, including power, energy storage, and consumer electronics sectors [1]

Group 1 - Lithium battery industry stocks surged significantly on October 13, with Huasheng Lithium Battery hitting a 20% limit up and reaching a new high, while Haike New Energy and Taihe Technology rose over 17%, also achieving new highs [1] - From October 14 to November 10, lithium carbonate futures prices have continuously increased, with a total increase of 20% [1] - The production enthusiasm in the lithium iron phosphate industry is high, with leading material manufacturers operating at full or even over capacity, indicating a strong supply-demand dynamic that is expected to continue until the end of the year [1] Group 2 - By the first half of 2025, large-scale battery cells are expected to achieve full production and sales, with leading manufacturers' capacity utilization rates generally exceeding 80%, and some nearing 90% [1] - The independent energy storage demand in China is rapidly exploding after the cancellation of mandatory storage, with an expected annual growth rate of 30%-40% [1] - The demand for electrolytes has rapidly increased, with a cumulative production of 1.47 million tons from January to September, a year-on-year increase of 43.67%, and the annual total is expected to exceed 2 million tons [1] Group 3 - The price of lithium iron phosphate has recovered from a low of 70,000-80,000 yuan/ton in 2023-2024 to the current level of 100,000-110,000 yuan/ton, although still below the 2022 peak [2] - From January to September 2025, the production of lithium iron phosphate is expected to grow by 23.9% year-on-year, with rapid overall production expansion [2] - The negative electrode sector is experiencing a significant upward shift in price levels compared to the low points of 2019-2020, driven by rapid recovery in downstream demand starting September 2025 [2]

Core Viewpoint - The chemical sector is experiencing a strong surge driven by price increases in lithium battery materials, with significant capital inflows into chemical ETFs over the past three days, totaling 9.61 billion yuan [1] Group 1: Chemical Sector Performance - The chemical sector's recent performance is attributed to four main factors: 1. The Producer Price Index (PPI) has turned positive for the first time this year, with a month-on-month increase of 0.1% in October, while the Consumer Price Index (CPI) has also shown a slight increase [1] 2. The photovoltaic industry is focusing on self-discipline and reducing excess capacity, which is expected to stabilize the market [1] 3. Lithium battery material companies are experiencing a supply-demand mismatch due to increased storage demand and cautious expansion after a previous downturn, leading to rising prices [1] 4. Phosphate chemical products are benefiting from the positive outlook in lithium battery demand, with related companies performing well [2] Group 2: Market Indicators - As of November 13, 2025, the CSI Sub-Industry Chemical Theme Index has risen by 2.66%, with significant gains in individual stocks such as Xinzhou Bang (16.21%) and Tian Ci Materials (9.02%) [3] - The chemical ETF has increased by 2.48%, reflecting the overall performance of the chemical sector [3] Group 3: Major Stocks - The top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index account for 44.83% of the index, including Wan Hua Chemical and Tian Ci Materials [4]

Group 1 - The chemical sector continues to show strong performance, with the Chemical ETF (516020) rising by 1.97% as of the latest report, reaching a peak intraday increase of 2.1% [1][2] - Lithium battery stocks have surged, with notable gains from companies such as Lianhong Xinke, which hit the daily limit, and others like Xinzhou Bang and Tianci Materials, which rose by over 15% and 9% respectively [1][2] - The price of lithium hexafluorophosphate has skyrocketed, with some market quotes reaching 150,000 CNY per ton, doubling since mid-October due to a mismatch between supply and demand [2][3] Group 2 - The price increase of lithium hexafluorophosphate is affecting the electrolyte segment, creating a positive feedback loop within the industry, with a short-term expectation of a tight supply-demand balance [3] - As of November 12, the Chemical ETF (516020) has a price-to-book ratio of 2.41, indicating a relatively low valuation compared to the past decade, suggesting a favorable long-term investment opportunity [3] - Looking ahead, the basic chemical sector is expected to see an upward trend starting in 2026, driven by improved domestic and external demand, alongside a reduction in capital expenditure growth since June 2025 [4] Group 3 - The Chemical ETF (516020) tracks the CSI segmented chemical industry index, covering various sub-sectors, with nearly 50% of its holdings in large-cap stocks like Wanhua Chemical and Salt Lake Co., allowing investors to capitalize on strong market leaders [4] - Investors can also consider the Chemical ETF linked funds (Class A 012537/Class C 012538) for exposure to the chemical sector [4]

Core Viewpoint - The A-share market experienced a collective rise, with the New Energy Vehicle ETF (515030) leading the gains, reflecting positive sentiment in the sector driven by advancements in battery technology and infrastructure [1] Industry Summary - As of November 13, the New Energy Vehicle ETF (515030) surged by 3.14%, with a trading volume of 57.43 million yuan, indicating strong investor interest [1] - Key stocks within the ETF, such as Xinzhou Bang, Tianhua New Energy, and others, saw significant increases, with Xinzhou Bang rising over 16% [1] - The 2025 World Power Battery Conference held on November 12 highlighted advancements in solid-state battery technology, with CATL's chairman stating that the company is at the forefront of research and industrialization globally [1] - CATL's battery swapping system is designed to be compatible with solid-state batteries, enhancing its market position [1] - The Chocolate Battery Swapping Alliance has established a presence in over 40 cities across China, with plans to build 1,000 battery swapping stations by the end of the year [1] - Long-term growth prospects for Chinese lithium battery companies are optimistic, supported by their leading production capacity and advanced technology in the global market [1] Company Summary - The New Energy Vehicle ETF (515030) is currently the largest themed ETF in the market, tracking the CSI New Energy Vehicle Index (399976) [1] - The ETF includes stocks from companies involved in lithium batteries, charging stations, and new energy vehicles, with battery-related stocks accounting for 51.9% of its composition [1]