Huajin Securities: Short-term spring market continues, A shares maintain a trend of oscillation and strength.

Huajin Securities stated that the short-term spring market rally is continuing, with A-shares maintaining a oscillating upward trend. Short-term economic and profit growth are still in a weak recovery trend. Firstly, short-term economic growth is still showing a weak recovery trend. Secondly, short-term profit growth may continue to be in a rising cycle: firstly, short-term PPI growth rate year-on-year may continue to rise; secondly, A-share profits continue to maintain a trend of structural growth. Short-term liquidity remains loose. Firstly, short-term macro liquidity remains loose: firstly, the low level of the U.S. dollar index continues to fall further, with limited constraints on domestic liquidity easing from overseas; secondly, there may be further reserve requirement ratio and interest rate cuts domestically. Secondly, short-term stock market funds may continue to flow in quickly. Short-term risk appetite may continue to rise. Firstly, positive short-term policy expectations may further increase. Secondly, external short-term risks are relatively limited.