AH shares collectively declined, with the ChiNext dropping 0.8%. Fujian and military industry sectors led the gains, while the Science and Technology Index fell over 1%. Hong Kong's Starry Chain Group experienced a sharp crash

A-shares experienced a volatile adjustment, with the Shanghai Composite Index down 0.43%, the Shenzhen Component Index down 0.35%, and the ChiNext Index down 0.8%. Local stocks in Fujian, military industry, lithium mining, and AI applications led the gains; while precious metals, pharmaceuticals, photovoltaic equipment, and lab-grown diamonds led the declines. Hong Kong stocks fell, with the Hang Seng Index down 0.80% and the Hang Seng Tech Index down 1.19%. Airline stocks collectively declined, while the lithium mining sector surged against the trend, with XingTaiChain Group experiencing a sharp crash, with a decline exceeding 70% at one point. The bond market rose across the board, most commodities fell, and precious metals had the largest declines

Overall, the market is in a phase of digesting pressure and seeking a new balance in the morning. Funds are reallocating between high-dividend defensive stocks, regional policy themes, and oversold technology leaders.

On November 17th, the A-shares experienced fluctuations and adjustments, with the Shanghai Composite Index down 0.43%, the Shenzhen Component Index down 0.35%, and the ChiNext Index down 0.8%. Local stocks in Fujian, military industry, lithium mining, and AI applications led the gains; while precious metals, pharmaceuticals, photovoltaic equipment, and cultivated diamonds led the declines.

Specifically, local stocks in Fujian continued to strengthen, with nearly 20 stocks such as Sanmu Group and Pingtan Development hitting the daily limit, indicating that the enthusiasm for regional economic themes is entering a heated stage.

The lithium battery sector was repeatedly active, with companies like Shengxin Lithium Energy and Rongjie Co., Ltd. hitting the limit, continuing last week's strong performance. Although the leading company CATL opened lower due to shareholder reductions, the sector as a whole remained strong. On the news front, the price increase trend for lithium battery materials continues to spread, with a sharp rise in the price of thionyl chloride.

Military stocks surged during the session, with companies like Great Wall Military Industry and Aerospace Development hitting the limit. On the news front, important reminders from multiple departments including the Ministry of Foreign Affairs, the Ministry of Culture and Tourism, and the Ministry of Education advised against traveling to Japan recently, as Japan has openly made provocative statements, severely worsening the atmosphere of personnel exchanges between China and Japan. Dongxing Securities stated that Japan's provocations have intensified geopolitical uncertainties, which may become a significant hidden danger for "promoting national reunification." In the context of external threats to China's core interests, defense construction investment is expected to continue to increase, and planning goals are likely to accelerate, promoting further high-quality development of China's military industry.

The AI application concept strengthened, with multiple stocks such as 360 and XuanYa International hitting the limit. After adjustments, funds have once again flowed back into technology sectors with imaginative potential. Alibaba's "Qianwen" app has officially launched, injecting a new catalyst into the AI to C track.

On the downside, innovative drug concept stocks fell, with companies like Shutai Shen and Sinovac Biotech dropping over 6%. The following are the core index situations:

The Shanghai Composite Index closed at 3973.31 points in the morning, down 0.43%.

The Shenzhen Component Index closed at 13169.37 points in the morning, down 0.35%.

The ChiNext Index closed at 3086.67 points in the morning, down 0.80%.

The CSI 300 closed at 4596.15 points in the morning, down 0.69%.

The STAR 50 closed at 1351.31 points in the morning, down 0.73%.

The CSI 500 closed at 7220.73 points in the morning, down 0.20%.

The CSI 1000 closed at 7509.66 points in the morning, up 0.09%.

As the index fluctuates below 4000 points, the surge in Fujian stocks and the activity in lithium batteries and AI together outline the current market choice—funds are unwilling to exit but also dare not venture in, ultimately finding a temporary balance in regional themes and certain industrial trends.

On the news front, recently, CSRC Chairman Wu Qing emphasized that during the "14th Five-Year Plan" period, efforts should focus on making the market more resilient, more robust, with a more inclusive and attractive system, and higher quality and better value for listed companies. This points the way for the medium- and long-term development of the capital market Hong Kong stocks fell, with the Hang Seng Index down 0.80% and the Hang Seng Tech Index dropping 1.19%. Airline stocks collectively declined, while the lithium mining sector surged against the trend. Star Chain Group experienced a sharp crash, with a decline of over 70% at one point.

In terms of news, this morning, Star Chain Group announced that on November 14, 2025, the company received a letter from the Stock Exchange, notifying the company of its decision. After considering the information available to the Stock Exchange (including the company's submission), according to Article 13.24, the company failed to maintain sufficient operational levels and asset support of sufficient value for its operations, which allows its shares to continue listing. The trading of the company's shares will be suspended on November 26, 2025, according to Listing Rule 6.01(3), unless the company applies for a review of this decision under its rights in Chapter 2B.

The bond market rose across the board, with the 30-year main contract up 0.40%, the 10-year main contract up 0.08%, the 5-year main contract up 0.04%, and the 2-year main contract up 0.03%.

Most commodities fell at midday, with precious metals leading the declines, and most new energy materials also down.

11:28

The Hang Seng Tech Index fell over 1% during the day. Trip.com dropped nearly 5%, Lenovo fell nearly 4%, and XPeng and Baidu were down nearly 3%.

11:14

Lithium carbonate futures main contract rose over 8%, reported at 94,460 yuan/ton.

The shipping index (European line) main contract rose over 7%.

In terms of news, the lithium carbonate futures market is driven by increased supply and demand, along with a continuous decline in inventory, showing a strengthening trend.

On the supply side, there is a characteristic of "domestic production increase, import contraction." According to data from the General Administration of Customs, the import volume of lithium carbonate in September was 19,596.9 tons, a month-on-month decrease of 10.3%, while the export volume was 150.816 tons, a sharp decrease of 59.12%; CBC data shows that in October, domestic lithium carbonate production was 51,530 tons, a month-on-month increase of 9.31%, but the operating rate was 43%, a month-on-month decrease of 5 percentage points, indicating that the release of domestic capacity is still constrained.

On the demand side, the peak season effect is significant, with demand for power and energy storage rising simultaneously. Data from the China Automotive Power Battery Industry Innovation Alliance shows that in October, the domestic power battery installation volume was 84.1 GWh, a month-on-month increase of 10.7% and a year-on-year increase of 42.1%, of which lithium iron phosphate batteries accounted for 67.5 GWh, or 80.3%. The terminal market is also strong, with October new energy vehicle production at 1.772 million units, a month-on-month growth of 9.59%; sales at 1.715 million units, a month-on-month growth of 6.12%; cumulative exports of 2.014 million units, a year-on-year increase of 90.36%; and the production of midstream electrolyte and lithium iron phosphate cathodes also increased month-on-month, effectively driving the demand for lithium carbonate procurement At the inventory level, there are clear signals of accelerated destocking and improved supply and demand. Data shows that in October, the monthly inventory of lithium carbonate was 84,234 tons, and this week, SMM's weekly inventory was 120,472 tons, including 28,270 tons at smelters, 48,772 tons at cathode manufacturers, and 43,430 tons at battery and trading companies, indicating a downward trend across the entire industry chain. Additionally, this week's weekly inventory of lithium carbonate was 120,500 tons, a decrease of 3,481 tons from the previous week, with the destocking pace accelerating and increased activity in the spot market.

Chen Sijia, a researcher at Ruida Futures, stated that the fundamentals of lithium carbonate are in a situation of dual growth in supply and demand, with good demand growth and expectations driving continuous declines in industry inventory. Although high operating rates at domestic lithium salt plants and increased export volumes from Chile will bring about an increase in imports, the support from the demand side is clear, and lithium prices may be supported in the future, requiring attention to the pace of supply increases.

Sun Weidong, chief analyst at Dongzheng Futures, indicated that in the short term, lithium carbonate is supported by strong demand and accelerated destocking, maintaining high-level fluctuations in the market. However, the spot market has shown signs of fatigue, with inventory accumulation in the trading sector and reduced terminal purchases. Additionally, a weakening power market next year may be reflected in December's demand, and mid-term attention should be paid to the weakening of demand on a month-on-month basis and market changes after the resumption of mining operations becomes clearer.