Technical Correction Continues for A-Shares and Hong Kong Stocks: Tech Stocks Under Pressure, High-Dividend Sectors Favored by Safe-Haven Funds

Social Media Factors (Xueqiu)

A-shares and Hong Kong stocks are undergoing technical correction; positive news (e.g., NVIDIA’s earnings report, securities firm restructuring) has shown a diminished effect [9].
Core adjustment logic: Digest profit-taking positions and chip exchange; need to wait for indicators like turnover (CSI All-Share Index target: 1.2-1.5 trillion yuan, current: 1.67 trillion yuan) and turnover rate (target: 1.5%, current:1.95%) to hit bottom [9].
Funds are rotating into high-dividend sectors like the Big Four banks; insurance funds are scrambling to buy bank stocks to gain medium-term dividends and state-owned asset revaluation benefits [9].
Before liquidity improves, the market may continue to fluctuate, with high risks of chasing gains or selling at losses [9].

Research Findings

November 21: A-shares adjusted sharply: Shanghai Composite Index closed down 2.45% to 3834.89 points, Shenzhen Component Index down3.41%, ChiNext Index down4.02%; tech stocks were the hardest hit, with the ChiNext AI ETF closing down4.83% [1,5].
Hong Kong stocks face global adjustment pressure; weekly trading volume and turnover rate have fallen below historical averages, and institutions expect valuation recovery in2026 [3].
NVIDIA (NVDA) Q3 revenue of $57.01 billion exceeded expectations, but failed to boost A-share tech stocks; instead, it triggered concerns about AI valuation bubbles [7,8].
Banking sector received large-scale fund accumulation: Bank of China (601988.SH) and Industrial and Commercial Bank of China (601398.SH) hit all-time highs; the sector as a whole trades below book value, and dividend yield is far higher than deposit rates [4].
Funds show a “high-to-low shift” feature: flowing from high-valued tech stocks to low-valued high-dividend sectors [1,4].

Synthesis

Alignments
: Xueqiu and research consistently confirm A/H shares’ technical correction, fund rotation to high-dividend sectors, NVIDIA’s earnings report having no boosting effect on tech stocks, and liquidity being a key variable.
Contradictions
: No substantive contradictions found; conclusions mutually confirm each other.
Impact
: Short-term investors should avoid chasing tech stocks; long-term investors can allocate to high-dividend sectors or wait for liquidity signals for tech stocks.

Risks & Opportunities

Risks
:
- Tech stocks face further correction risk due to AI bubble concerns [7,8].
- Hong Kong stocks face increased volatility due to global liquidity impacts [3].
- Short-term market fluctuation risk continues [1,6].
Opportunities
:
- High-dividend banking sector as a safe haven [4].
- Hong Kong stocks’ valuation recovery potential in2026 [3].
- Long-term growth opportunities for tech stocks (awaiting liquidity improvement) [1,5].

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