Xin Lang Cai Jing·2025-11-05 05:15Core Viewpoint - The A-share market showed resilience with a strong performance in the new energy sector, particularly the battery sector, which is experiencing significant inflows and positive market sentiment [1][5]. Market Performance - On November 5, the A-share market opened lower but quickly rebounded, with the Shanghai Composite Index turning positive. The Battery 50 ETF (159796) rose over 2% during the morning session, attracting substantial capital inflows, including a net subscription of 80 million units [1][3]. - The top ten constituent stocks of the Battery 50 ETF mostly saw gains, with EVE Energy rising over 5% and Sungrow Power Supply increasing over 3% [3]. Supporting Factors - Three key factors are supporting the strength of the A-share market: 1. The China Warehouse Index for October 2025 rose to 50.6%, an increase of 1 percentage point from the previous month. 2. The central bank is conducting a 700 billion yuan reverse repurchase operation with a three-month term. 3. The market continues to see a rhythm of dividends and thematic plays [4]. Sector Analysis - The battery sector is poised for a new cycle driven by multiple catalysts from policy, demand, and technology [5]. - According to Zhongyuan Securities, the industry's outlook remains positive, with the importance of new energy vehicles and lithium batteries increasing. The demand for energy storage lithium batteries is expected to grow faster than that for power batteries [6]. - CITIC Securities highlights a recovery in the energy storage market, with domestic energy storage reaching an economic inflection point and projected new installations of 300 GWh next year [6]. - Shengan Securities notes advancements in all-solid-state battery technology, which is expected to see significant breakthroughs and commercialization [6]. Investment Strategy - The complexity of the battery sector suggests that investors may benefit from index investments to capture the historical opportunities in the sector. The Battery 50 ETF (159796) is highlighted for its high exposure to energy storage (26%) and solid-state battery technology (42%) [7][9]. - The ETF is noted for its leading scale and lowest fee structure among similar products, with a management fee of only 0.15% per year [10].