On November 15th, the China Securities Regulatory Commission officially issued the "Guidance No. 10 for Listed Company Supervision - Market Cap Management," which sets special requirements for companies in major index components to establish market cap management systems and for long-term companies with low valuations to disclose their valuation enhancement plans.

Citic Securities' research reports state that counter-cyclical adjustments and policies supporting the stock market are continuously strengthened, remaining bullish on investment opportunities in the chemical sector, and suggest paying attention to:

1) Beneficial symbols from central enterprise reforms and market cap management;

2) Capacity expansion varieties with cost advantages;

3) High-quality growth companies with marginal changes in the industry;

4) Directions of technological innovation.

According to gtja's research reports, looking ahead to the fourth quarter of 2024 and the next two years, in the short term, although the "golden September and silver October" peak season for the basic chemical sector in 2024 is not strong, industries with rigid supply still show strong profitability resilience, such as MDI, titanium concentrate, phosphate rock, and trichlorosucrose.

In the medium to long term, the basic chemical sector is expected to gradually emerge from the cyclical bottom by 2025, starting a moderate recovery. gtja recommends leading blue-chip companies with cost advantages and high-quality enterprises with growth trends.

Chemical industry segmented related industry chain companies:

Sinopec corp (00386), sinopec seg (02386), shanghai pechem (00338), l & m chemical (00746), yip's chemical (00408), china sanjiang (02198), tsaker ne (01986), china risun gp (01907), tiande chemical (00609), etc.