Broker Morning Meeting Highlights | Pullback Creates Intervention Opportunities

Yesterday, the market fluctuated and adjusted all day, with all three major indexes falling by more than 2%, and the Science and Technology Innovation 50 Index falling by more than 3%. The trading volume of the Shanghai and Shenzhen stock markets was 2.58 trillion, a decrease of 250.8 billion from the previous trading day. In terms of market performance, over 4600 stocks declined, with 123 of them hitting the limit down. Looking at sectors, the liquor concept was active, with Gansu Huangtai Wine-Marketing Industry hitting the limit up for three consecutive days, Jinhui Liquor hitting 2 consecutive limits in 3 days, and Sichuan Swellfun reaching the limit up. The electric power equipment sector strengthened against the trend, with multiple stocks such as Qingdao Hanhe Cable, GuangZhou BaiYun Electric Equipment, San Bian Science & Technology, and Baoding Tianwei Baobian Electric hitting the limit up. On the downside, non-ferrous metals, oil and gas, chemicals, coal, and semiconductor sectors performed poorly. The non-ferrous metals sector suffered a heavy blow, with multiple stocks such as Sichuan Gold, Chifeng Jilong Gold Mining, Tongling Nonferrous Metals Group, and Western Mining hitting the limit down. The storage chip concept plummeted, with GigaDevice Semiconductor Inc. and Ucap Cloud Information Technology Co., Ltd. hitting the limit down. At the close, the Shanghai Composite Index fell by 2.48%, the Shenzhen Component Index fell by 2.69%, and the ChiNext Index fell by 2.46%. At today's brokerage morning meeting, Huatai believes that the correction creates entry opportunities; Zhongtai believes in focusing on the systemic expansion theme; Guotou Securities believes that the style switch still needs to be observed. Huatai: Correction creates entry opportunities Both A-shares and Hong Kong stocks fell significantly yesterday. "Wash trading" last Friday triggered a global risk off for risky assets, and on Monday it triggered some liquidity pressure, reflected in the overall decline in commodities and Asian stock markets. This adjustment is more technical and emotional. In the medium term, China's assets face a trend of good liquidity and fundamentals remain unchanged. Once technical indicators stabilize, they are expected to resume an upward trend. Zhongtai: Focus on systemic expansion themes The core recommendation direction is the bulk commodity-related sectors with strong and upward demand certainty. It includes benefit varieties from geopolitical turmoil (precious metals), new energy metals such as copper and aluminum; critical varieties for military expansion and computing power (rare earths); energy storage, lithium batteries; long-term energy replacement varieties (photovoltaics, nuclear power, space computing centers). Caution should be exercised or avoided in the direction of weak demand elasticity and insufficient logic continuity of consumer-related varieties. It includes black series related to real estate, consumer demand, pigs, high-end liquor, and luxury goods, or more rebound demand. Guotou Securities: Observing the style switch Whether there will be a style switch or a high-to-low switch around the Spring Festival is a topic worth exploring. The leading performers before the Spring Festival were global pricing resources + technology + outbound equipment, while the laggards were domestic inflation chains and banks, corresponding to the "farewell to deflation chain." There will be some catalyzing factors around "farewell to deflation" after the Spring Festival, such as expectations for policies after the Spring Festival. Currently, the evaluation is: the controversy lies in the elasticity and space for CPI and PPI to continue rising in 2026. Our consistent view is that the essence of truly bidding farewell to deflation in 2026 is the easing of the turbulent political cycle and the economic cycle rebounding, such as the broad fiscal and monetary policies between China and the U.S. resonating under relatively low inventories, similar to the transition from the end of 2019 to 2020. So far, the data verification of this logic has not been seen, and is still in the tracking observation process. This article is reprinted from "CaiLian News", GMTEight editor: Xu Wenqiang.