CITIC Securities: It is recommended to continue layout around the three directions of quality improvement of traditional manufacturing industry, overseas expansion of Chinese enterprises, and edge AI.

CITIC Securities research report stated that although the index is at the same 4000 points level, the current index quality is significantly better than that of the same period in 2015, and the valuation level is significantly lower than at that time. Therefore, there is no need to excessively focus on the index itself. With the end of the Fourth Plenary Session, the achievement of phase one in the China-US trade talks, and the completion of the third quarter reports, looking ahead, there are still structural opportunities. Timing is of limited importance, and it is recommended to continue focusing on upgrading traditional manufacturing, Chinese companies going global, and AI development at the edge. In the short term, attention can be paid to several stage-wise oversold rebound clues that may appear after the release of the third quarter reports.