Market Overview - The A-share market has shown a rebound after hitting a bottom, with all three major indices closing higher [1] - The trading volume in the Shanghai and Shenzhen markets reached 2.11 trillion, a decrease of 210.7 billion compared to the previous trading day [2] Sector Performance - There has been a noticeable rotation of market hotspots, with previously high-performing technology sectors undergoing adjustments, while lower-tier sectors such as coal, oil and petrochemicals, banking, and steel have shown strong performance, indicating defensive attributes [2] Nuclear Energy Technology - Thorium-based molten salt concept stocks performed strongly, with companies like Baose Co., Hailu Heavy Industry, and Lanshi Heavy Industry hitting the daily limit, while Guorui Technology and Changfu Co. also saw significant gains [3] - On November 1, the Chinese Academy of Sciences announced a significant breakthrough with the successful conversion of thorium-uranium nuclear fuel in a 2 MW thermal power liquid fuel thorium-based molten salt experimental reactor located in Gansu Wuwei, marking China's transition from follower to leader in nuclear energy technology [3] - The thorium molten salt reactor is recognized as a star player in next-generation nuclear energy technology, offering inherent safety, abundant fuel sources, and cleaner environmental characteristics, providing a potential solution to global energy crises and climate change [3] Industry Chain Analysis - **Upstream Resources and Materials**: Key players include Baogang Group, which controls approximately 77.3% of China's thorium resource reserves, and companies like Shangda Co. and Hualing Steel that provide critical materials for reactors [4] - **Equipment and Components**: Major manufacturers include Shanghai Electric and Dongfang Electric, involved in the development of core equipment for molten salt reactors [5] - **Downstream Construction and Application**: Shanghai Construction Group is responsible for the infrastructure projects related to the experimental reactor [5] Future Outlook - The thorium molten salt reactor technology is expected to undergo several stages, including research and demonstration reactors, with plans to establish a 100 MW demonstration project by 2035, indicating a long road ahead for large-scale commercialization and performance realization [6] Seasonal Market Trends - According to Guangfa Strategy, the A-share market exhibits seasonal characteristics, with a focus on "realities" from April to October and "expectations" from November to March of the following year [7] - After November, the influence of current fundamentals begins to weaken, prompting the market to explore undervalued sectors in preparation for the upcoming year [8] - The correlation between market movements in November and current fundamentals is the weakest, often exhibiting a negative correlation, characterized by "anti-fundamentals" and "forward speculation" [9] Investment Strategies - Three potential strategies include: 1. Initial positioning in low-valued sectors with expected profit recovery, such as consumer electronics, with further investments as industry trends clarify [10] 2. Continuing to focus on currently high-performing sectors like coal, oil and petrochemicals, and public utilities without overreacting to year-end style changes [10] 3. Identifying short-term opportunities in sectors stimulated by favorable news events, such as various upcoming industry conferences and forums [10]