Business strategy: The December Producer Price Index (PPI) narrowed, with most chemical prices rising.

The investment strategy research report pointed out that the direction of improvement in sentiment this week is mainly in the areas of resource products, consumer services, and information technology. In the upstream resource products, metal and chemical prices mostly rose; in the midstream manufacturing sector, prices in the new energy industry chain mostly rose, with a narrowing growth rate in heavy truck sales volume on a three-month rolling basis in December. In the field of information technology, memory prices continued to rise, with a narrowing growth rate in sales volume of various excavators and loaders on a three-month rolling basis in January. In the consumer services sector, prices of pork and chicken rose, as did the prices of traditional Chinese medicine materials. The year-on-year growth rate of CPI expanded in December, while the decline in PPI continued to narrow. It is recommended to invest in sectors with higher or improving sentiment, such as non-ferrous metals, chemical industry, power equipment, animal husbandry, storage devices, and integrated circuits.