Market Overview - A-shares experienced a collective decline on November 21, with the Shanghai Composite Index dropping by 2.45% to close at 3835 points, the Shenzhen Component down by 3.41%, and the ChiNext Index falling by 4.02% [1] - Market turnover significantly increased, with a total trading volume of 1.97 trillion yuan, up approximately 257.5 billion yuan from the previous trading day [1] Sector Performance - Defensive sectors such as media, home appliances, food and beverage, banking, and agriculture showed relatively smaller declines, while cyclical and technology sectors like non-ferrous metals, power equipment, basic chemicals, and electronics faced deeper adjustments [1] - The banking sector rebounded during the session, providing stability to the market, and dividend assets demonstrated defensive characteristics amid rising risk aversion [1] Influencing Factors - External liquidity concerns intensified as Federal Reserve officials expressed caution regarding a potential rate cut in December, leading to a rapid cooling of expectations for such a move and putting pressure on technology stocks sensitive to liquidity [1] - Divergence in market logic regarding the AI industry emerged, with investors worried about the sustainability of capital expenditures and eventual returns from U.S. AI giants, despite strong earnings from leading AI companies [1] - Event-driven factors, including stock index futures settlement and geopolitical tensions, amplified market volatility [2] Future Outlook - Morgan Asset Management views the current adjustment as a result of both internal and external factors, suggesting that the external factors acted as a trigger rather than the main issue for the A-share market [2] - The market has largely priced in the liquidity shock, with an 89% probability of the Federal Reserve maintaining interest rates in December, indicating that the negative sentiment around "no rate cut" has been largely absorbed [2] - A-shares are expected to maintain an independent logic, with no excessive capital expenditure issues similar to the U.S. AI sector, and the fundamentals of technological innovation and self-sufficiency remain solid [2] - Investment opportunities may arise in the following areas: undervalued quality companies in the technology sector, industries with policy support and improving fundamentals (such as photovoltaics and chemicals), and defensive dividend assets like banking and coal [2]

Investment Rating - The industry rating is "Recommended" [4] Core Insights & Investment Recommendations - The recent US-China trade negotiations in London have reached a principled framework, indicating substantial progress in managing differences and stabilizing economic relations, which may support global supply chain recovery [2][21] - OpenAI has launched the new o3-pro model, reducing its price by 80% and input/output costs by 87%, reflecting a shift towards efficiency optimization in large model technology and accelerating AI technology penetration into small and medium enterprises [2][21] - The report maintains a cautious optimism regarding trade negotiations and highlights AI as a key investment direction amid global macroeconomic volatility, emphasizing the importance of technological innovation and self-sufficiency for long-term development [3][22] Sub-industry Data Film Industry - The top three films by box office this week are "How to Train Your Dragon: The Hidden World" with 58.175 million yuan (25.6% market share), "Mission: Impossible 8" with 54.90 million yuan (24.2%), and "Time Son" with 28.366 million yuan (12.5%) [24][25] Gaming Industry - The top three iOS games by revenue are "Honor of Kings," "Peacekeeper Elite," and "Endless Winter," while the top three Android games by popularity are "Heart Town," "Sword Legend," and "My Leisure Time" [27][28] TV Series Industry - The top three TV series by broadcast index are "The Cang Hai Chuan," "Lin Jiang Xian," and "The Lychee of Chang'an," with indices of 85.3, 84.2, and 82.2 respectively [30][31] Variety Shows & Animation - The top variety show is "Ha Ha Ha Ha Season 5" with a broadcast index of 80.6, followed by "Run, Brother Season 9" and "Unlimited Exceeding Class Season 3" [32] - The top three animated shows by viewership index are "Cang Yuan Tu," "Xian Ni," and "Perfect World," with indices of 340.2, 225, and 222.5 respectively [34]

Group 1: Market Overview - The Hong Kong stock market saw a net inflow of 84.59 billion HKD from Northbound trading, with 72.68 billion HKD from Shanghai and 11.92 billion HKD from Shenzhen [1] - The most bought stocks included China Construction Bank (00939), China Mobile (00941), and the Tracker Fund of Hong Kong (02800) [1] - The most sold stocks were Tencent (00700), Xiaomi Group-W (01810), and CNOOC (00883) [1] Group 2: Stock Performance - Alibaba-W (09988) had a net inflow of 14.37 billion HKD, while Xiaomi Group-W (01810) experienced a net outflow of 2.59 billion HKD [2] - Tencent Holdings (00700) saw a net outflow of 6.20 billion HKD, while Meituan-W (03690) had a net inflow of 4.49 billion HKD [2] - China Construction Bank (00939) received a net inflow of 8.62 billion HKD, indicating strong interest in banking stocks [2][4] Group 3: Sector Insights - China Mobile (00941) received a net inflow of 8.12 billion HKD, supported by government initiatives to advance 5G-A and 6G technology [5] - The Tracker Fund of Hong Kong (02800) saw a net inflow of 7.97 billion HKD, with analysts optimistic about the Chinese economy and currency [5] - Pop Mart (09992) had a net inflow of 5.24 billion HKD, with Morgan Stanley raising sales and profit forecasts due to strong demand [6] Group 4: Clinical and Pharmaceutical Developments - Three-Sixty Pharmaceuticals (01530) received a net inflow of 4.01 billion HKD, with promising clinical trial results for its drug SSGJ-707 [7] - Semiconductor stocks like SMIC (00981) and Hua Hong Semiconductor (01347) also attracted net inflows, reflecting interest in the chip sector amid U.S. export restrictions [8]

Investment Rating - The industry rating is "Recommended" [5] Core Views & Investment Suggestions - Significant progress has been made in China-US tariff negotiations, leading to cautious optimism. The US will suspend 24% tariffs on Chinese goods for 90 days while retaining 10%, and China will reciprocate. This agreement signals a phase of easing tensions and may alleviate export chain pressures [2][22] - Three major food delivery platforms, including JD, Meituan, and Ele.me, have been summoned for discussions regarding fair competition practices. This regulatory action is expected to enhance service quality and industry standards [2][27] Market Overview - In the week of May 12-16, 2025, the Shanghai Composite Index rose by 0.76%, while the SW Media Index fell by 0.77%, ranking 29th among 31 industries [1][11] - The top-performing sub-industries included Internet services, broadcasting, and sports, with respective increases of 1.86%, 0.37%, and 0.1% [1][11] Investment Opportunities - The report suggests focusing on the following investment opportunities: 1. Hong Kong Internet leaders, which are expected to benefit from consumption promotion and employment stabilization 2. The gaming industry, which is likely to see growth due to policy incentives and technological advancements 3. The film and cultural tourism sectors, which may recover due to consumer policies stimulating demand [3][23] Industry Data - The top three films by box office revenue for the week were "Dumpling Queen" (31.914 million yuan), "Hunting Gold: Game" (27.856 million yuan), and "Life Opens the Door" (12.039 million yuan) [50][51] - The iOS game sales rankings were led by "Honor of Kings," "Peacekeeper Elite," and "Golden Shovel," while the Android rankings were topped by "Heartfelt Town," "My Leisure Time," and "Honkai: Star Rail" [52][53] - The top three TV dramas based on viewership index were "Bending the Waist," "Huai Shui Bamboo Pavilion," and "A Good Life" [56]

Investment Rating - Industry Rating: Recommended [5] Core Views & Investment Suggestions - Significant progress in China-US tariff negotiations, maintaining cautious optimism. The US will suspend 24% tariffs on Chinese goods for 90 days while retaining 10%, and China will reciprocate. This agreement signals a phase of easing tensions and may alleviate export chain pressures [2][24] - Three major food delivery platforms, including JD, Meituan, and Ele.me, were summoned for discussions to enforce fair competition and protect rider rights. This regulatory push is expected to enhance service quality and industry standards [2][30] Market Overview - In the week of May 12-16, 2025, the Shanghai Composite Index rose by 0.76%, the CSI 300 Index increased by 1.12%, and the ChiNext Index grew by 1.38%. The Hang Seng Index saw a 2.09% rise, while the SW Media Index fell by 0.77%, ranking 29th among 31 industries [1][12] Investment Opportunities - Focus on leading technology companies in China, particularly in the context of increasing domestic demand and technological innovation. Suggested sectors include: 1. Hong Kong internet leaders benefiting from consumption and employment stabilization 2. Gaming industry, with policy incentives boosting domestic demand and overseas expansion potential 3. Film and cultural tourism sectors, with consumption policies aiding cinema recovery [3][25] Industry Data - Top three films by box office for the week include "Dumpling Queen" with 31.914 million yuan, "Hunting Gold: Game" with 27.856 million yuan, and "Life Opens the Door" with 12.039 million yuan [4][57] - iOS game sales rankings are led by "Honor of Kings," "Peace Elite," and "Golden Shovel," while Android rankings feature "Heart Town," "My Leisure Time," and "Honkai: Star Rail" [4][61] - The top three TV dramas by broadcast index are "Bending the Waist," "Huai Shui Bamboo Pavilion," and "A Good Life" [4][64]