Huatai Securities: Divergent trading sentiment in funds, overall trend of A-shares may move upwards in the future.

Huatai Securities research report stated that in the first half of last week, the trading volume of A-shares increased to over 3 trillion, but in the second half of the week, the policy adjustment intensity increased in a counter-cyclical manner, leading to a pullback in the A-share market. The following observations are provided: 1) Funds sentiment is differentiated, with leveraged funds and ETFs with high individual holdings still net inflowing into the market, with financing activity still above 11%, but ETFs with high institutional holdings saw a significant net inflow, with the ETFs with high holdings by China Investment Corporation seeing a net outflow of about 135.1 billion yuan; 2) In addition, considering the performance of market trading volume, we statistically analyze the market performance after the surge in trading volume of A-shares. We believe that after a surge in trading volume, short-term market sentiment is still high, leading to volatile market trends. If there are catalysts in terms of fundamentals and liquidity in the future, the overall trend of A-shares may turn upwards. Focusing on industries, industries that continue to rise after a surge in trading volume are mostly market mainlines with fundamental verification.