#2024.10.28 Morning Market Strategy# Last Friday, the index rebounded with positive market feedback, especially in the photovoltaic sector which led the gains.

Over the weekend, topics like mergers and acquisitions (M&A), the Beijing Stock Exchange, semiconductors, photovoltaics, and the low-altitude economy were widely discussed, with M&A receiving particularly strong positive stimulus.

After all, the benchmark effect of Shuangcheng Pharmaceutical has already been established, and several high-position stocks in the market also overlap with M&A concepts. This direction is expected to continue gaining momentum this week.

This week's outlook:

The index is expected to remain volatile, with major directional choices awaiting the outcome of November's key events.

Sector rotation is anticipated; avoid chasing sectors that surge on daily news.

Now, let’s look at specific themes and stocks:

1. Mergers & Acquisitions (M&A)

M&A was the most hyped topic over the weekend, with speculation sheets circulating everywhere as the market scoured stocks with M&A potential.

Changshan North Ming confirmed an asset swap. Last Friday, institutional investor Liulu bought 400 million yuan worth of shares on the Dragon & Tiger List. However, some view this as negative, as the market had previously speculated about Huawei-related business injections. Instead, Changshan North Ming spun off its textile business and introduced new energy and smart city operations, leading to mixed interpretations.

For M&A, the most promising directions are capacity reduction, state-owned enterprises, brokerages, and STAR Market restructurings.

2. Low-Altitude Economy

Positive news for the low-altitude economy over the weekend included:

👉 XPeng AeroHT’s flying car factory commenced construction, targeting 10,000 units annual capacity;

👉 Wuxi, Jiangsu, signed 72 key low-altitude economy projects totaling 30.2 billion yuan in investment;

👉 The 2024 China (Yangtze River Delta) Low-Altitude Economy Expo will be held in Nanjing from November 1–3.

The low-altitude industry is a trillion-yuan market with strong policy support and rapid implementation. As a flagship of new productive forces, this sector remains worth watching.