Preface

The brokerage firms have unveiled the stock picks for November, focusing mainly on sectors such as electronics, electric power equipment, and base metals. With companies like Tencent Holdings and Zijin Mining standing out, these stocks have garnered multiple recommendations from institutions.

Looking ahead to November, many brokerages expect a predominantly upward market trend. Key sectors likely to capture attention include technology and energy resources, although some brokerages anticipate minimal shifts in market style.

Lazy bag

Key highlights indicate brokerage analysts favor electronics, electric power equipment, and base metals for November. Lookout for sustained market growth. Recommendations encompass diverse and resilient sectors.

Main Body

During October, major indices experienced varying performances, with the Shanghai Composite and Beijing 50 Index rising by 1.85% and 3.54%, respectively, while the Growth Enterprise Market Index dropped by 1.56% and the STAR 50 Index fell over 5%. Notably, Guodun Quantum, recommended by East Money Securities, witnessed a tremendous surge of over 65% during October, proving to be the top-performing stock. Other high-performing stocks included Ronshine Culture and Jiabao Dragon, which saw significant gains following expert recommendations.

When examining brokerage stock portfolio performance for October, most experienced a collective pullback. Of over 40 brokerage firms listed on the Mishi app, only five reported positive returns, highlighting the challenging market conditions. Western Securities topped the list with a monthly return of 4.05%, followed by Ping An Securities and Great Wall Securities, which yielded respective returns of 3.16% and 2.09% last month.

Emerging stocks for November, as per recent brokerage disclosures, remain concentrated in the electronics, electric power equipment, and base metals sectors. Tencent Holdings, recommended by Guosen Securities and Guojin Securities, among others, takes the lead. Guojin Securities asserts that Tencent's AI-driven ecological system greatly enhances its core strengths while its optimized business structure significantly boosts profitability.

In the base metals domain, Zijin Mining is endorsed by firms like Guangda Securities, with a positive outlook anchored on its elasticity and realization against the rising prices of gold and copper. The market anticipates a positive revaluation with Zijin Gold International's listing. Other noteworthy entries in this sector include Luoyang Molybdenum and Yunlu Co., both of which garnered significant attention from analysts.

The electronics section witnesses a consistent rally, with Foxconn Industrial Internet, Hudian Stock, and Zhaoyi Innovation frequently recommended by analysts. Taipingyang Securities highlights Hudian Stock's prospects, citing the AI demand's surge in boosting its server switch business growth.

The electric power equipment sector, while not as concentrated, remains pivotal, with Tianci Materials receiving shared recommendations from two brokerages. Zhongyuan Securities emphasizes the price upticks in fluorine and electrolytic solutions, favoring Tianci Materials as an industry frontrunner.

Other stocks worthy of mention securing two or more analyst recommendations include Zhongji Xuchuang in the telecommunications sector, Haier Smart Home in appliances, and HN Cement in construction materials. Meanwhile, international companies like Alibaba-W and Gu Mian attract substantial attention in the Hong Kong market.

Looking towards November, most brokerages maintain an optimistic market outlook, citing robust support from technology and energy resource sectors. Zhongguo Yinhe Securities strategist Yang Chao observes a slight decline in risk appetite during October following geopolitical and macroeconomic concerns. As the 15th Five-Year Plan's advisory paper begins to guide investments, themes around technology independence, modern industrial systems, and national security will likely be focal points for November's investment narrative.

Zhongtai Securities' Xu Chi notes the market's strength apparent with limited downside risk in a structural bull environment, especially within the technology segment. The brokerage suggests focusing on non-crowded sub-segments within technology, such as Hong Kong's internet sphere and consumer electronics.

Donghai Securities expresses confidence in the continued certainty and sustainability of domestic equity assets, buttressed by a softened US-China trade tension and supportive monetary policies. November's key investment themes encompass technology, especially artificial intelligence, and significant trajectories within emerging industries outlined in the just-released 15th Five-Year Plan proposals. In sectors like base metals and electric power, there's an anticipated synergistic pull from strategic upswing in energy safety ventures.

Guosheng Securities' Yang Liu advises a balanced asset allocation strategy, balancing high-ranking assets and ensuring support through profitability validation; they recommend focusing on metals, lithium batteries, and storage sectors' potential in the context of observable economic trends.

Key Insights Table