According to the Securities Times app, China Securities Co., Ltd. released a research report stating that although the short-term market is still trending sideways, when the USD, US Treasury bonds, and exchange rates stabilize and approach the December policy meeting, the market is expected to stabilize and launch a year-end rally at any time, suggesting a low position should be taken. Current high risk appetite marginally corrected at high levels, economic policy expectations are slowly recovering, and market styles will change marginally, with funds tending from small and mid caps to thematic stocks, ETFs, and the return of heavyweight and large-mid cap stocks. Focus on the expansion of domestic demand, new quality production capabilities, supply optimization expectations, such as converting bonds into equity and asset revaluation, "two highs and two news" directions. Focus on the A500 index and market cap management,Mergerrestructuring and other thematic.

Main viewpoints of Zhongxin Jiandao are as follows:

Last week, the market experienced some shaking and retracement, with increasing market divergences.

From the perspective of domestic fundamentals, October economic data has been successively released. Despite initial improvements in real estate and consumer sectors under a series of policy deployments, the market remains cautiously optimistic about economic recovery, expecting more substantial domestic demand policies to be implemented. On the other hand, external concerns are fermenting, with the market continuing to worry about the timely and effective hedging of tariff impacts and escalating challenges in US-China relations. Meanwhile, the strength of the US dollar and high US bond rates are also causing volatility in the RMB to USD exchange rate and even to loose expectations. Finally, the market widely observes the phenomenon of regulatory norms being applied to speculative trends driven by retail investors and excessive speculation in low-quality themes.

External factors are a secondary contradiction in the A-share market, not to mention the specific impact of the policies of the new American president's team, which needs to be formally evaluated after the policies are officially enacted. If necessary, there is still ample room for the effective hedging of domestic policies.

Although the recent decline in speculative themes has seemingly weakened the partial profitability of the market, the policy tone remains loose. This week, the official version of the "Listed Companies Supervision Guideline No. 10 - Market Value Management" has been implemented, increasing the flexibility in handling abnormal stock price movements by listed companies. In the medium term, this is also conducive to investors further leaning towards value investing rationally. With the medium-term bull market logic not being disrupted, even if risk appetite marginally falls, it is expected to remain at a relatively high level.

Furthermore, October's M2 and other financial data performed better than expected, and the expectations for interest rate cuts and reserve requirement cuts persist, with liquidity expected to remain ample. There are signs of improvement in the fundamentals, which are expected to continue to slowly recover. Additionally, there are incremental policy expectations still to come. Although there is a lag between policy efforts and fundamental confirmation, markets often lead fundamentals. Based on statements from relevant ministry leaders, apart from the earlier debt restructuring arrangements, important meetings in December are expected to further clarify the expansion of support for real estate, capital markets, "two heavy and two new," technological innovation, livelihoods, and other areas.

Therefore, although the short-term market may need some consolidation and volatility, the overall medium-term upward trend in the market remains unchanged. Considering the catalyst timing of the policy meetings and the liquidity environment, the market is expected to interpret a year-end market rally. In the short term, institutions are generally focusing first on when the Renminbi exchange rate stabilizes against the US dollar, then the focus will shift to expectations for the policy deployment in December. Investors can position themselves on dips, prepare for the year-end market movements, and when the US dollar, US treasuries, and exchange rates stabilize, particularly nearing the December policy meeting, the market is expected to stabilize and rise at any time.

Currently, with the marginal correction of the high risk appetite in the market and the slow recovery of economic and policy expectations, market styles will correspondingly show marginal changes.

The investment trend favors value growth over small and medium-sized plate thematic investments. Capital is marginally shifting from small and medium-sized plate stocks to ETFs, weighty stocks, and large-mid cap index stocks. In the medium term, the focus is on directions benefiting from key policy focuses, with room for improvement in valuations and profit expectations, including: debt restructuring and asset revaluation (real estate, construction, eco-friendly concepts, local government spending-related chains, city commercial banks, non-bank financial institutions, etc.), internal demand expansion directions (consumer electronics, machinery, autos, domestically produced medical devices, etc.), new quality productivity directions (vehicle-road-cloud, low-altitude economy, independent controllable, etc.), and supply optimization expectations (steel, building materials, photovoltaics, etc.)

Focus on the A500 index.

Focus on the themes of market value management and mergers and acquisitions.