The performance of A-share indices is mixed, with lithium mining stocks leading the gains. The main contract for lithium carbonate futures has broken through 100,000 yuan/ton. Hong Kong stocks opened high but fell, while energy stocks strengthened against the trend

The performance of A-share indices is mixed, with the ChiNext rising and then falling back to 0.12%. The differentiation between the yellow and white second-tier stocks is evident, and the micro-cap stock index has dropped over 2%. Sectors such as shipbuilding, insurance, aquaculture, and precious metals are leading the gains; while sectors like Hainan Free Trade Zone, film and television media, gas, and real estate are leading the declines.

As of the midday close on November 19, the A-share market saw the Shanghai Composite Index down 0.04%, the Shenzhen Component Index down 0.32%, and the ChiNext up 0.12%. Specifically, the military industry sector performed actively, with Yaguang Technology and Yaxing Anchor Chain hitting the daily limit. The aquaculture sector surged, with Kaichuang International and Zhongshui Fisheries also hitting the limit. Financial stocks such as insurance and banks strengthened, with Bank of China rising nearly 3% to a new high. Lithium mining stocks rebounded again, led by Jinyuan Co., with Shengxin Lithium Energy, Dazhong Mining, Zhongmin Resources, and Rongjie Co. all following suit. On the news front, lithium carbonate futures main contracts rose 5% during the day, breaking through 100,000 yuan/ton. The price increase trend for lithium battery materials continues to propagate, with recent "long-term agreements" and "locked orders" in the lithium battery supply chain. On the downside, the Hainan sector declined, with Hainan Haiyao hitting the daily limit; the Fujian sector continued to adjust, with Sanmu Group also hitting the limit. Individual stocks showed a general downward trend, with over 4,500 stocks in the Shanghai, Shenzhen, and Beijing markets in the red, and the morning trading volume reached 1.12 trillion yuan. Here is the core index information:

The Shanghai Composite Index closed at 3938.29 points in the morning, down 0.04%.

The Shenzhen Component Index closed at 13038.33 points in the morning, down 0.32%.

The ChiNext Index closed at 3072.79 points in the morning, up 0.12%.

The CSI 300 closed at 4577.77 points in the morning, up 0.21%.

The STAR 50 closed at 1343.15 points in the morning, down 1.09%.

The CSI 500 closed at 7096.06 points in the morning, down 0.77%.

The CSI 1000 closed at 7358.27 points in the morning, down 1.21%.

On the news front, Shenwan Hongyuan believes that the current valuation of the AI industry chain is in a long-term low cost-performance area, similar to the ChiNext in 2014, food and beverage in 2018, and new energy in 2021. Historically, it usually requires undergoing an adjustment of "doubtful bull market level" before continuing the industrial trend. A comprehensive bull market restart requires the resonance of four major conditions: clearing of midstream manufacturing supply by 2026, verification of the "policy bottom" triggering economic cycle improvement, deepening of residents' asset allocation towards equities, and enhancement of China's global influence.

Shengxin Lithium Energy (002240.SZ) announced that the company plans to sign a "2026-2030 Cooperation Framework Agreement" with Huayou Holding Group regarding lithium salt product business cooperation, with Huayou Holding Group expected to purchase 221,400 tons of lithium salt products from the company during the period from 2026 to 2030. This transaction constitutes a related party transaction and is subject to approval by the company's shareholders' meeting. This agreement will not affect the company's operating performance for the current year, and the impact on the company's future operating performance will be determined based on the specific agreements signed later and their implementation. With the rapid development of the global new energy vehicle and energy storage industries, the market demand for lithium products continues to grow, providing the company with significant market space and development opportunities As a leading lithium salt production company, the firm actively expands and consolidates high-quality downstream customers, continuously enhancing its market competitiveness. The company has signed a "2026-2030 Cooperation Framework Agreement" with Huayou Holding Group, which is beneficial for the expansion of the company's lithium salt business, strengthens the long-term stable strategic partnership with high-quality customers, enhances the stability and sustainability of the company's future operations, and boosts market competitiveness, aligning with the company's business development strategy.

Hong Kong stocks opened high but fell, with the Hang Seng Index down 0.45% and the Hang Seng TECH Index dropping 0.98%, while the energy sector performed strongly against the trend.

In the bond market, government bond futures fell across the board at midday, with the 30-year main contract down 0.31%, the 10-year main contract down 0.07%, the 5-year main contract down 0.04%, and the 2-year main contract down 0.02%.

In commodities, commodity futures were mixed at midday, with new energy materials leading the gains, lithium carbonate rising by 4.31%; all precious metals increased, with Shanghai silver up 1.06%. The main contract for lithium carbonate futures broke through 100,000 yuan/ton, the first time since June 2024, with an intraday increase of nearly 6%.

10:32

The main contract for lithium carbonate futures broke through 100,000 yuan/ton, the first time since June 2024, with an intraday increase of nearly 6%.

In news, Su Xin, an analyst at Shanghai Steel Union, stated in an interview with the Shanghai Securities Journal that the recent rise in lithium carbonate prices is driven by an explosion of orders in the domestic and international energy storage markets. As a result, battery and iron lithium material companies have continued to strengthen their production schedules.

9:50

The continuous main contract for lithium carbonate rose 5% to 99,340.00 yuan/ton during the day.

In news, CITIC Construction Investment stated that strong demand has led to a monthly-level shortage and destocking of lithium carbonate. According to Mysteel data, the monthly supply of lithium carbonate in November is about 115,000 tons, while demand is 128,000 tons, resulting in a shortage of about 13,000 tons, with the market continuing to destock. Meanwhile, off-season consumption is not weak, and order support can continue into next year. Currently, the supply-demand conflict for lithium carbonate has shifted from supply pressure to demand-driven. In the medium to long term, the sustained strength of energy storage demand will lead to a price increase across the entire lithium battery industry chain, and the fundamental supply-demand situation for lithium carbonate will also improve significantly. Static forecasts indicate that global lithium resource supply will reach 2.089 million tons in 2026, with consumption at 2.004 million tons. Without considering the cathode segment and traders' restocking scenarios, the surplus will only be 85,000 tons, narrowing compared to 2025. Considering the industry's restocking, a structural shortage will occur in 2026, with lithium prices shifting from supply pressure to demand-driven upward movement.

9:47

Xiaomi's stock once fell over 6% during the session, but the decline has narrowed to 3.5%. Previously, Xiaomi announced its financial report, with total revenue in the third quarter falling short of market expectations, leading Citigroup to lower its target price

9:30

Government bond futures opened, with the 30-year main contract down 0.12%, the 10-year main contract down 0.01%, the 5-year main contract down 0.01%, and the 2-year main contract basically flat.

9:29

The aquaculture sector opened with gains, with Zhongshui Fisheries hitting a 4-day limit up, and companies like Kaichuang International, Dongfang Ocean, Zhangzidao, and Dahu Co. all opening higher.

9:25

The Shanghai Composite Index opened at 3937.92 points, down 0.05%.

The Shenzhen Component Index opened at 13071.94 points, down 0.07%.

The ChiNext Index opened at 3065.16 points, down 0.13%.

The CSI 300 opened at 4568.04 points, down 0.00%.

The STAR Market 50 opened at 1355.13 points, down 0.21%.

The CSI 500 opened at 7141.26 points, down 0.14%.

The CSI 1000 opened at 7438.14 points, down 0.13%.

9:22

Baidu opened up over 2%, after announcing its financial report, with Citigroup raising its target price. XPeng, Midea, and NetEase rose over 1%. Xiaomi fell nearly 2%, after announcing its financial report.

The Hang Seng Index opened up 0.09%, and the Hang Seng TECH Index rose 0.37%.

In terms of news, thanks to strong growth in its automotive business, Xiaomi Group's third-quarter profit surged 80% year-on-year to a record high, but revenue growth fell short of market expectations; revenue from mobile phones and home appliances declined, indicating that after more than a year of vigorous advancement in the "people, car, home all-ecosystem" strategy, at least two of the company's three lines are facing certain growth bottlenecks.

Investment bank Citigroup's research report stated that Xiaomi's adjusted net profit for the third quarter exceeded Citigroup's expectations, mainly due to non-operating income meeting estimates, and gross margins exceeding expectations due to strong performance in the Internet of Things, Internet, and electric vehicle businesses, although operating expenses were higher than expected. Notably, the electric vehicle and other new businesses achieved an operating profit of 700 million RMB in the third quarter, compared to a loss of 300 million RMB in the second quarter, meeting estimates. The target price was lowered to HKD 50, maintaining a "buy" rating 9:15

The central parity rate of the RMB against the USD is reported at 7.0872, down 16 points; the previous trading day's central parity rate was 7.0856, and the official closing price of the previous trading day was 7.1125, while the night session closed at 7.1074.

9:00

Commodity futures opened, with the main contract for palm oil rising nearly 2% and crude oil up 1%. Soda ash and double-coated paper fell over 2%, while coking coal and coke dropped over 1%.

FTSE China A50 index futures rose 0.07% at the start, with the previous trading day's night session closing up 0.08%