Huatai Securities released an A-share strategy report saying that the market continued to shrink and fluctuate in the week before the holiday season, and structural highs and lows continued to switch. Innovative pharmaceuticals, real estate, banks, etc. had a relative advantage, and telecommunications, semiconductors, etc. were still digesting the level of congestion. The overall incremental information during the holiday period was positive: on the domestic side, the manufacturing PMI returned to the expansion range in September, total holiday consumption data was stable and structurally fragmented, and financial interest rates on home loans were implemented at the policy end; on the overseas side, “weak non-agricultural” stocks were sluggish, and the NASDAQ reached a record high of 100. Combined with the post-holiday calendar effect, A-shares have been clearly adjusted before the holiday season. Profit expectations are stable, and the volume is expected to pick up after the holiday. However, the upward trend in global interest rates under high oil prices still suppresses the denominator side. It is recommended to avoid pure themes and high valuations, and continue to rebalance along profit, low congestion, and low volatility.

Huatai Securities released an A-share strategy report saying that the market continued to shrink and fluctuate in the week before the holiday season, and structural highs and lows continued. Innovative pharmaceuticals, real estate, banks, etc. had a relative advantage, and telecommunications, semiconductors, etc. were still digesting the congestion level. The overall incremental information during the holiday period was positive: on the domestic side, the manufacturing PMI returned to the expansion range in September, total holiday consumption data was stable and structurally fragmented, and financial interest rates on home loans were implemented at the policy end; on the overseas side, “weak non-agricultural” stocks were sluggish, and the NASDAQ reached a record high of 100. Combined with the post-holiday calendar effect, A-shares have been clearly adjusted before the holiday season. Profit expectations are stable, and volume is expected to pick up after the holiday. However, the upward trend in global interest rates under high oil prices still suppresses the denominator side. It is recommended to avoid pure themes and high valuations, and continue to rebalance along profit, low congestion, and low volatility.