According to the CICC research report, investors showed differences in expectations during the “New Year's Eve” phase due to recent changes in A-shares. In the short term, the phased impact of internal and external factors on A-shares may be nearing its end. Currently, the liquidity environment is still relaxed until the first quarter of next year, and the “deposit migration” trend of residents is expected to continue in the context of low interest rates and scarce assets. The early correction of the index has provided investors with a good opportunity to set up the “New Year's Eve” market due to low interest rates. In terms of allocation, the growth style is low, and the dividend style focuses on phased and structural opportunities. It is still recommended to focus on three main lines: 1) Booming growth: The field of AI technology has experienced 3 years of rapid development, and is expected to gradually enter the industrial application implementation stage next year. There are still opportunities at the level of computing power, optical modules, and cloud computing infrastructure, but it may be more in the domestic direction; the application side focuses on robots, consumer electronics, intelligent driving, and software applications. In addition, innovative drugs, energy storage, and solid-state batteries are also entering a boom cycle. 2) Breakthrough in external demand: Going overseas is still a definite growth opportunity. Combined with the trend of going overseas and exposure to the US, it is recommended to focus on global pricing resources such as household appliances, construction machinery, commercial buses, power grid equipment and games, and non-ferrous metals. 3) Cycle reversal: Based on the position of the production capacity cycle, it is recommended to focus on supply and demand issues close to an inflection point or policy support areas, and focus on chemicals, aquaculture, new energy, etc. The dividend sector has certain defensive properties, but it may still be phased and structured as an opportunity. It is recommended to select stocks from the bottom up from the perspective of high-quality free cash flow.

According to the CICC research report, investors showed differences in expectations during the “New Year's Eve” phase due to recent changes in A-shares. In the short term, the phased impact of internal and external factors on A-shares may be nearing its end. Currently, the liquidity environment is still relaxed until the first quarter of next year, and the “deposit migration” trend of residents is expected to continue in the context of low interest rates and scarce assets. The early correction of the index has provided investors with a good opportunity to set up the “New Year's Eve” market due to low interest rates. In terms of allocation, the growth style is low, and the dividend style focuses on phased and structural opportunities. It is still recommended to focus on three main lines: 1) Booming growth: The field of AI technology has experienced 3 years of rapid development, and is expected to gradually enter the industrial application implementation stage next year. There are still opportunities at the level of computing power, optical modules, and cloud computing infrastructure, but it may be more in the domestic direction; the application side focuses on robots, consumer electronics, intelligent driving, and software applications. In addition, innovative drugs, energy storage, and solid-state batteries are also entering a boom cycle. 2) Breakthrough in external demand: Going overseas is still a definite growth opportunity. Combined with the trend of going overseas and exposure to the US, it is recommended to focus on global pricing resources such as household appliances, construction machinery, commercial buses, power grid equipment and games, and non-ferrous metals. 3) Cycle reversal: Based on the position of the production capacity cycle, it is recommended to focus on supply and demand issues close to an inflection point or policy support areas, and focus on chemicals, aquaculture, new energy, etc. The dividend sector has certain defensive properties, but it may still be phased and structured as an opportunity. It is recommended to select stocks from the bottom up from the perspective of high-quality free cash flow.