Essence of Securities Morning Meeting | Small and Large Cap Styles May Show Transformation

Last Friday, the market fluctuated and rebounded, with the Shanghai Composite Index hitting a new high for the year, and the ChiNext Index leading the gains. The total turnover of the Shanghai and Shenzhen stock markets was 1.97 trillion yuan, an increase of 330.3 billion yuan from the previous trading day. In terms of sectors, the storage chip, CPO, and semiconductor sectors led the gains, while the coal and oil and gas sectors led the declines. As of last Friday's close, the Shanghai Composite Index rose by 0.71%, the Shenzhen Component Index rose by 2.02%, and the ChiNext Index rose by 3.57%. At today's brokerage morning meeting, Huatai released its A-share strategy, stating that allocation can moderately tilt towards a dumbbell type; China Securities Co., Ltd. pointed out that it is optimistic about the global resonance trend of energy storage remaining unchanged; CICC believes that there may be a shift in the large and small-cap styles. Huatai A-share strategy: allocation can moderately tilt towards a dumbbell type Huatai pointed out that recent A-shares have entered a phase of shrinking and fluctuating under the influence of macro uncertainties, with short-term market variables still existing. From the perspective of market sentiment indicators, quantitative and profit-effect indicators have fallen back to the neutral zone. However, considering that there is still a willingness for funds to "bottom fish," the extent of the investor sentiment decline may be relatively limited, and adjustments still present opportunities for allocation. Positions can moderately migrate towards dumbbell configuration, 1) driven by policy and trading factors, technology may still be the short-term market theme. Low-priced assets in the direction of Hang Seng Technology, A-share computing power, Siasun Robot & Automation may still be the main market allocation direction; 2) considering that the uncertainty of future Sino-US friction is still strong, defensive dividend sectors may still have allocation opportunities; 3) investors' expectations for the fundamentals of pro-cyclical consumer sectors are weak, risk digestion is relatively sufficient, and it is appropriate to position part of the consumption direction on the left. China Securities Co., Ltd.: optimistic about the global resonance trend of energy storage remaining unchanged China Securities Co., Ltd. pointed out that the market has shown signs of recovery, optimistic about the global resonance trend of energy storage remaining unchanged. The domestic energy storage sector has entered a period of economic turnaround, with investment extremely active, primarily driven by the marketization of new energy + capacity electricity prices. China Securities Co., Ltd. believes that the cumulative penetration rate of energy storage is still less than 10%, and it has raised the domestic new installed capacity to 300 GWh next year. The largest opportunity overseas comes from the demand for energy storage brought about by data centers, with leading companies already having a large number of orders. Energy storage will drive lithium battery demand with a growth rate of over 30% next year, corresponding to investment opportunities in materials, batteries, and integration. CICC: large and small-cap styles may show a shift CICC pointed out that looking ahead, there may be a shift in the large and small-cap styles, and the large-cap growth style is expected to dominate the medium term (3-6 months). The current macro background still supports emerging growth sectors, including the continued recovery of the macro economy, rapid industrial technological iteration, industrial policies emphasizing innovation, and continued encouragement of mergers, reorganizations, and IPO-related policies for sci-tech enterprises. At the same time, the proportion of large-cap emerging growth companies in the market has increased, balancing the impact on large and small-cap stocks more evenly than before. In terms of funds, the concentration of institutional investors' holdings in A-shares still has room to increase, and the proportion of institutional holdings in large-cap emerging growth styles is still expected to increase. This article is reproduced from "Cai Lianshe", edited by Liu Jiayin for GMTEight.