According to the Futu Wealth APP, China securities co.,ltd. released research reports stating that the market has transitioned from the 'blitzkrieg' of the first stage of the bull market to the second stage of the bull market, which is now in a 'see-saw battle.' In the short term, it will present a pattern of fluctuations, but looking at the medium term, it is also a period of preparing for the layout of the third stage. The firm believes that the press conference held by the Ministry of Finance on Saturday clearly demonstrates the central government's strong willingness and ability to deleverage. However, the market still needs more confirmation on the relevant details. In the medium term, the trading recovery of domestic demand will become an important investment clue in the market, and investors can actively pay attention to it and position themselves when the market dips. Key industries to focus on in the near term include: internet plus-related, electric vehicles, banks, insurance, construction, electronics, machinery, non-ferrous metals, and more. Short-term focus areas: debt conversion (eco-friendly, AMC, etc.), Trump trades (tesla industry chain, etc.).

Main viewpoints of Zhongxin Jiandao are as follows:

The structural logic of the 'see-saw battle' stage. The first stage, the 'blitzkrieg,' came as fast as expected and went away quickly. This round of the bull market has entered the second stage, the 'see-saw battle.' During the 'see-saw battle' stage, indices are often dominated by fluctuations, some speculative funds tend to sell high and buy low, but the market will still have structural highlights. Institutional investors will focus on areas with strong fundamental trends. Looking at the medium term, the strategic significance of the second stage is also in positioning for the future main varieties of the third stage.

Financial clues are gradually becoming clearer, and the recovery of domestic demand can be expected. The firm believes that the 926 Political Bureau meeting clearly emphasizes full efforts to revitalize the economy and reverse the balance sheet deflation expectations. In the press conference held by the Ministry of Finance on Saturday morning, the central government's strong willingness and ability to deleverage were emphasized. Additionally, the focus of this meeting on supporting local government debt, the banking system, and the real estate market directly boosts the valuation of related industries and indirectly improves economic and profit expectations. Related industries include banks, real estate, insurance, construction, eco-friendly concepts, AMC platforms, as well as companies related to business, local governments, and platforms.

Focus on the impact of Trump leading in expanding domestic demand trade. Regarding the US presidential election, although overall polls support Harris leading Trump by 1.8 percentage points, Trump is currently leading in 6 out of 7 swing states. Therefore, attention should still be paid to the potential Trump trades. For A-shares, this means pressure on the industrial chain exporting to the USA, but the trade expansion of domestic demand is expected to heat up. Due to tesla's Musk's strong support for Trump, the theme of A-shares' tesla industry chain may also receive increased attention.

Position for the recovery of domestic demand trade at lower levels. Short-term focus on maintaining strong third-quarter performance stocks. 1) Consumption: breeding (recovering from losses), household appliances (domestic demand recovery), education; 2) Technology: optical modules, consumer electronics (supply chain), semiconductor equipment; 3) Manufacturing: autos, ships, tires, power grid equipment; 4) Cyclical: precious metals, a small increase in some chemical products (vitamins/TMA, etc.); 5) Stability: electrical utilities (hydropower); Pay attention to sectors with forthcoming bearish earnings but potential for reversal, focusing on CXO, military industry, innovative technology, power inverters. With the policy resolution for the balance sheet, banks and other industries are expected to undergo valuation restoration. In the medium to short term, further expectations for expanding domestic demand trades will gradually increase, and sectors like machinery, non-ferrous metals, and consumer industries can be positioned when the market is at a low level. Long-term strategic attention should be on the direction of new quality production forces.