AH shares opened lower and continued to decline, AI applications strengthened against the trend, the Hang Seng Index and the Tech Index fell over 1%, and new energy vehicle concept stocks declined

A-shares fluctuated lower in the morning, with the North Exchange 50 Index down over 2%. Sectors such as AI applications, semiconductor chips, CPO, and software development led the gains; while coal, batteries, titanium dioxide, and organic silicon sectors led the declines.

As of the midday close on November 18, A-shares saw the Shanghai Composite Index down 0.56%, the Shenzhen Component Index down 0.43%, and the ChiNext Index down 0.43%. The AI application sector surged against the trend, with nearly ten stocks including Fushi Holdings and Inspur Software hitting the daily limit. Semiconductor chip stocks rose, with Longxin Technology and Dawei Shares hitting the daily limit. On the downside, the battery sector fell, with Fengyuan Shares hitting the daily limit; local stocks in Fujian declined, with multiple stocks including Sanmu Group hitting the daily limit. Overall, more stocks fell than rose, with over 4,000 stocks in the Shanghai, Shenzhen, and Beijing markets in the red, and a total turnover of 1.29 trillion in the morning session. The following are the core indices:

The Shanghai Composite Index closed at 3949.83 points in the morning, down 0.56%.

The Shenzhen Component Index closed at 13145.00 points in the morning, down 0.43%.

The ChiNext Index closed at 3091.87 points in the morning, down 0.43%.

The CSI 300 closed at 4587.80 points in the morning, down 0.22%.

The STAR 50 closed at 1366.61 points in the morning, up 0.93%.

The CSI 500 closed at 7178.15 points in the morning, down 0.79%.

The CSI 1000 closed at 7466.41 points in the morning, down 0.75%.

In terms of news, there has been a flurry of positive news for AI applications. Yesterday, Alibaba officially announced the "Qianwen" project, with the public beta version of the Qianwen APP launched; before the end of the year, Warren Buffett has built a position in Google's parent company Alphabet; in software, Google's Gemini 3.0 large model will be released this week. China International Capital Corporation believes that the business model of AI applications is rapidly transitioning from concept validation to revenue closure, and the demand for AI applications is expanding rapidly.

China Galaxy Securities stated that it expects the year-end market to remain primarily in a fluctuating structure, and opportunities related to "anti-involution" and dividends may be worth watching. The A-share market's consolidation pattern continues, with rapid rotation between sectors. The previously high-performing technology sector is in a consolidation phase, with funds beginning to rotate towards themes such as lithium batteries and electrolytes. The consumer sector is also benefiting from favorable policies, but the sustainability of thematic performances remains insufficient. Meanwhile, as the year-end approaches, institutional allocations may tend to balance, preparing for next year's economic direction. It is expected that the year-end market will still be primarily in a fluctuating structure. During sector rotation, attention should be paid to opportunities related to "anti-involution" and dividends, while the technology theme should focus on the catalysts of sub-sector rebounds and industrial trends.

Hong Kong stocks fell, with the Hang Seng Index down 1.47% and the Tech Index down 1.67%. Tech stocks and gold stocks broadly declined, with new energy vehicle concept stocks also falling, XPeng down over 9%, and innovative drug concept stocks correcting. The semiconductor sector strengthened.

Most commodities fell at midday, with oils and fats leading the gains, while all precious metals declined.

The bond market mostly remained flat, with government bond futures closing in the morning. The 30-year main contract rose 0.01%, while the 10-year, 5-year, and 2-year main contracts remained flat 9:53

The A-share battery sector plummeted, with Shida Shenghua hitting the daily limit down. Huasheng Lithium Battery, Yishitong, Haike Xinyuan, Tianli Lithium Energy, and Xinzhoubang followed suit.

In terms of news, Shida Shenghua released a "Stock Trading Risk Warning Announcement" on November 14, stating that the company's stock price had deviated by more than 20% over three consecutive trading days on November 11, 12, and 13, with a short-term increase significantly higher than the market level. According to the relevant provisions of the "Shanghai Stock Exchange Trading Rules," this constitutes abnormal stock trading fluctuations. The company disclosed the "Announcement on Abnormal Stock Trading Fluctuations" (Announcement No.: 2025-073) on November 14, 2025. On November 14, 2025, the company's stock closed at the daily limit price, with a cumulative increase of approximately 43.29% over four consecutive trading days. Although the stock price has seen a significant short-term increase, there has been no major change in the company's fundamentals. Investors are advised to pay attention to investment risks and invest rationally.

9:34

Lithium mining stocks continued to be strong, with Jinyuan Co., Ltd. achieving two consecutive limit ups, Shengxin Lithium Energy rising over 8%, and Guocheng Mining, Dazhong Mining, Zhongkuang Resources, and Defang Nano all opening higher.

In terms of news, on November 16, Ganfeng Lithium Chairman Li Liangbin stated at an industry summit that if demand growth exceeds 30% next year, or even reaches 40%, supply will not be able to balance in the short term, and prices may break through RMB 150,000/ton or even RMB 200,000/ton.

9:31

Government bond futures opened, with the 30-year main contract up 0.09%, the 10-year main contract up 0.04%, the 5-year main contract up 0.02%, and the 2-year main contract basically flat.

9:27

The China Securities Convertible Bond Index opened down 0.02%. Guocheng Convertible Bond rose 3%, Dazhong Convertible Bond rose nearly 2%, Mingxin Convertible Bond, Shuiyang Convertible Bond, and Dongshi Convertible Bond rose over 1%; Chutian Convertible Bond and Lizhong Convertible Bond fell over 3%, and Zhongneng Convertible Bond fell over 2%.

9:25

The Shanghai Composite Index opened at 3962.44 points, down 0.24%.

The Shenzhen Component Index opened at 13161.70 points, down 0.31%.

The ChiNext Index opened at 3089.38 points, down 0.51%.

The CSI 300 opened at 4584.79 points, down 0.29%.

The STAR 50 opened at 1350.51 points, down 0.26%.

The CSI 500 opened at 7215.03 points, down 0.28% The CSI 1000 opened at 7508.53 points, down 0.19%.

9:21

The Hang Seng Index opened down 0.8%, and the Hang Seng TECH Index fell 1.25%. New energy vehicle concept stocks declined, with XPeng down over 7%, Nio down 3%, and Li Auto down over 2%; innovative drug concept stocks corrected. The energy storage and robotics sectors strengthened.

In news, Citigroup stated that considering the off-season for automobile sales in the first quarter of next year, it has lowered the target prices for XPeng's U.S. and Hong Kong stocks by more than 3%, but remains optimistic about the company's potential for diversified growth next year. The target price for the U.S. stock was lowered by 3.4% to $28.4; the target price for the Hong Kong stock was lowered by 3.7% to HKD 110.6.

9:15

The central parity rate of the RMB against the USD was reported at 7.0856, down 40 points; the previous trading day's central parity rate was 7.0816, the previous trading day's official closing price was 7.1048, and the night session closed at 7.1083.

9:00

Commodity futures opened, with lithium carbonate main contracts rising over 3%, and BR rubber rising over 1%. Coking coal fell over 3%, while coke and polysilicon fell over 2%. Shipping on the European route, methanol, Shanghai silver, Shanghai nickel, caustic soda, and pulp fell over 1%.

The FTSE China A50 Index futures fell 0.47% in early trading, after closing down 0.52% in the previous trading day's night session