Summary of this issue

Key recommendations

Shanghai Stock Exchange: Listed companies’ disclosures should be reasonable, prudent and objective, and should not use market hot spots to speculate on concepts

China Association of Automobile Manufacturers: Automobile production of 11 key companies increased by 9.6% year-on-year in early and mid-November

Market Comments

Market Comments: The Shanghai Stock Exchange Index will fluctuate around 3,400 points, which may Focus on "procyclical" and Chinese manufacturing

Macro perspective: Economic recovery is expected to strengthen, procyclical nonferrous metals welcome opportunities

Securities industry: Comprehensive and deep reform of the capital market will be the core of the securities sector Driving factors, valuation awaits improvement

Futures Information

Metal energy: gold 386.38, up 2.36%; copper 54780, up 1.29%; rebar 3806, down 0.94%; rubber 14760, up 1.69%; PVC index 7305, down 0.14%; Zheng Chun 2288, down 0.26%; Shanghai Aluminum 15615, down 0.13%; Shanghai Nickel 121200, up 1.81%; Iron ore 848.5, flat; Coke 2373.5, down 1.17% ; Coking coal 1399.5, up 4.05%; crude oil 288.8, up 6.49%; Brent oil 47.82, up 4.34%;

Agricultural products: soybean oil 7510, down 1.80%; corn 2614, down 0.98%; palm oil 6576, down 0.09%; Zheng Cotton 14610, up 1.46%; Zheng Mai 2639, down 1.35%; White Sugar 5157, up 1.22%; Apple 7147, up 0.29%; Red Dates 9850, down 1.50%;

Exchange rate: EUR/USD 1.19, up 0.46%; USD/RMB 6.59, up 0.08%; USD/HKD 7.75, flat.

2. Key recommendations

1. Shanghai Stock Exchange: Listed companies’ disclosures should be reasonable, prudent and objective, and should not use market hot spots to hype concepts

Event: 2020 On November 24, 2019, the Shanghai Stock Exchange issued the "Guidelines No. 3 on the Application of Self-Regulatory Rules for Listed Companies - Classified Supervision of Information Disclosure" (hereinafter referred to as the "Guidelines"). This is another improvement and optimization made by the Shanghai Stock Exchange in the supervision method after summarizing the practical experience of supervision, proactively adapting to market needs, and following the information disclosure express train, industry-specific information disclosure supervision, and "getting to the bottom of" supervision. The Shanghai Stock Exchange will take classified supervision as an important starting point, thoroughly implement the State Council's "Opinions on Further Improving the Quality of Listed Companies" (hereinafter referred to as the "Opinions"), conscientiously practice the nine-character policy of "building systems, non-intervention, and zero tolerance", and in accordance with the China Securities Regulatory Commission unified deployment, give full play to the exchange's front-line supervision and self-discipline management responsibilities, and continue to improve regulatory efficiency.

Comment: With the improvement of the market system and the improvement of supervision level, the information disclosure of listed companies will be subject to more stringent supervision, the information disclosure of listed companies will be more standardized, and the effectiveness of the market will be improved. Great improvement. Investors should try to avoid short-term manipulation behaviors that rely solely on conceptual hype and lack the support of actual performance.

(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

2. China Automobile Association: Automobile production of 11 key enterprises increased by 9.6% year-on-year in early and mid-November

Event: Statistics from the China Association of Automobile Manufacturers, based on data reported by 11 key companies in the industry, show that in early to mid-November 2020, the automobile production of 11 key companies completed 1.612 million units, a year-on-year increase of 9.6%. Among them: the production of passenger vehicles was 1.379 million units, a year-on-year increase of 7.2%, and the production of commercial vehicles was 233,000 units, a year-on-year increase of 27.1%.

Comment: This year, the country has repeatedly introduced policies related to the automobile industry, including encouraging localities to loosen purchase restrictions and extend the period of subsidy policies. In addition, the domestic economic recovery momentum is obvious, which has formed a good positive boost to the production and sales of automobiles. At present, my country's per capita car ownership still has much room for improvement compared with developed countries. In the future, domestic car production and sales are expected to continue to be prosperous, which will deeply benefit related companies upstream and downstream of the industrial chain.

(Investment Consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

3. Market Comments

Market Comments: The Shanghai Stock Exchange Index will fluctuate around 3,400 points. Focus on "procyclical" and Chinese manufacturing

The major A-share indexes fluctuated slightly and fell back on Tuesday, with the Shanghai Stock Exchange Index falling back to the 3,400-point mark. In terms of industry sectors, non-ferrous metals, electrical transmission and distribution, coal mining and processing, and electronic components were among the top relative gainers, while gold, military industry, and seed industries were among the top relative losers. On the disk, the sectors are showing a healthy rotation performance, and the Shanghai Stock Index is expected to mainly fluctuate and digest around 3,400 points. In the volatile market, it is recommended that investors seize the opportunity of sector rotation. In the short term, they can focus on the rebound opportunities of technology stocks, and in the mid term, they can focus on procyclical stocks and Chinese manufacturing. Sectors you can focus on are: finance, real estate, photovoltaics, non-ferrous metals, electronic components, chemical industry and other sectors. There are risks in the stock market, so investment needs to be cautious.

(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)

Macro perspective: Economic recovery is expected to strengthen, and pro-cyclical opportunities are welcome

Events : The increase in economic recovery and inflation expectations is beneficial to non-ferrous metals, commodities that are procyclical and highly related to the macroeconomics. The marginal improvement in macroeconomic expectations has promoted the further rise in non-ferrous metal prices.

Comment: The steady growth of the domestic economy has supported the downstream consumer demand of the non-ferrous metal industry. Since November, LME copper prices, aluminum prices, and zinc prices have increased by 5.60%, 5.65%, and 6.06% respectively. As the smooth progress of vaccine research and development in the fourth quarter of this year and the first quarter of next year continues to strengthen the market's expectations for economic recovery, it will continue to drive the rise in nonferrous metal prices. It is recommended that relevant opportunities be actively seized in stages.

(Investment consultant Gu Zhixiong’s registered investment consultant certificate number: S02606611020066)

Securities industry: Comprehensive reform of the capital market will be the core driving factor for the securities sector, and valuations await improvement< /p>

Comprehensive reforms in the capital market will be the core driving factor for the securities sector, and brokerage stocks are expected to achieve double improvements in valuation and performance. At the individual stock level, leading securities companies have low valuations, stable performance, strong capital strength, and will benefit from policy tilts and increased industry concentration. They are suitable for long-term attention and holding. Among non-leading securities companies, it is recommended to pay attention to small and medium-sized enterprises with outstanding investment banks or wealth management capabilities. Brokerage dealers.

(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)