According to the Investment Strategy Research Report, after the recent rapid decline in the market, many indicators of A-shares are close to the historical bottom: transactions have shrunk markedly, the turnover rate has fallen to close to the historical bottom level, medium- and long-term capital represented by ETFs have accelerated entry and market stabilization efforts have increased; the institutionalized characteristics of the market stabilization mechanism have been strengthened, and the policy base is gradually being consolidated; the market bottom is often leading the fundamentals. Currently, profit and PPI are still improving. In terms of external pressure, leverage in the Japanese and South Korean markets has clearly been removed, and overseas transmission risks are manageable; however, AI pricing for US stocks is shifting from “investment expansion” to “verification of return on capital,” compounded by high interest rates on US bonds and rising oil prices to reduce the room for easing. High interest rates still restrict valuations. Considering that the probability of a market rebound is high in the history after ETF volume bottoming out, the short term may be dominated by shocks and structural opportunities, it is recommended to maintain a balanced allocation and focus on important points in the next two weeks. The core ideas of the industry allocation for the next 3 to 6 months are: focus on molecular advantages during the high interest rate stage, and secondly look at whether the chip structure is healthy; give priority to technological breadth when interest rates decline; and wait for subsequent domestic policy relays before further spreading to domestic demand.

According to the Investment Strategy Research Report, after the recent rapid decline in the market, many indicators of A-shares are close to the historical bottom: transactions have shrunk markedly, the turnover rate has fallen to close to the historical bottom level, medium- and long-term capital represented by ETFs have accelerated entry and market stabilization efforts have increased; the institutionalized characteristics of the market stabilization mechanism have been strengthened, and the policy base is gradually being consolidated; the market bottom is often leading the fundamentals. Currently, profit and PPI are still improving. In terms of external pressure, leverage in the Japanese and South Korean markets has clearly been removed, and overseas transmission risks are manageable; however, AI pricing for US stocks is shifting from “investment expansion” to “verification of return on capital,” compounded by high interest rates on US bonds and rising oil prices to reduce the room for easing. High interest rates still restrict valuations. Considering that the probability of a market rebound is high in the history after ETF volume bottoming out, the short term may be dominated by shocks and structural opportunities, it is recommended to maintain a balanced allocation and focus on important points in the next two weeks. The core ideas of the industry allocation for the next 3 to 6 months are: focus on molecular advantages during the high interest rate stage, and secondly look at whether the chip structure is healthy; give priority to technological breadth when interest rates decline; and wait for subsequent domestic policy relays before further spreading to domestic demand.