Lithium' Travels All Over The World! What Are The Impacts of The New Strain?

Last week (November 22-November 26), the Shanghai Composite Index rose 0.10%, the Shenzhen Component Index rose 0.17%, and the ChiNext Index 1.46%. When the broader market fluctuated, the plate rotation accelerated significantly. The non-ferrous metals, steel and other cyclical sectors "returned" again, and the wine and resource sectors continued to rebound; rare earth permanent magnets, scarce resources, lithium batteries, and UHV were among the top gainers. Metaverse, semiconductors, sub-new stocks, and major health sectors were rapidly rotating. Among them, photovoltaics, pig industry, online games, and semiconductor equipment were among the top decliners.

In terms of funds, in the past week, the transaction amount of northbound funds reached 492.286 billion yuan, and the net purchase was 5.71 billion yuan. Industries such as textiles and garments, communications, and non-bank finance are most favored by northbound funds.

However, affected by the mutant COVID-19 Omi Keron last Friday, global financial markets experienced shocks. Guotai Junan pointed out that overall, the risk of this round of mutant viruses still needs to be dynamically observed, but given the domestic prevention and control experience and the historical interpretation of the epidemic, there is no need for excessive panic to impact the capital market. Centaline Securities pointed out that the Shanghai Stock Exchange Index is currently in a relatively balanced operation trend, and it is not easy for the stock index to get out of the market in the future. It still depends on external stimulus. In the phase of relatively calm policy, investors can pay attention to some thematic sectors. Transactional investment opportunities. At the same time, Huaan Securities stated that the layout of the transitional period will become the main keynote in the coming year. While maintaining a balance, the allocation will gradually shift to growth. In the fourth quarter, the left side grinds the bottom, and the transition to next year is superimposed, and it should once again be biased towards the growth track.