Galaxy Securities: A-share drastic fluctuations are not a trend reversal, the medium and long-term positive trend remains unchanged.

Galaxy Securities research report indicates that the sharp fluctuations in A-shares are not a trend reversal, but a concentration of short-term emotions under the pressure of external factors. The medium to long-term market trend remains positive, and the market will gradually shift from "emotion-driven" to "fundamental-driven", presenting a pattern of "oscillating digestion, increasing momentum, and structural focus". Firstly, the policy side continues to exert force, and policy dividends during the two sessions will be concentrated, providing clear direction for the market. Secondly, the foundation of domestic economic recovery is gradually solidifying, and corporate profits are expected to continue to improve, providing fundamental support for the market. Thirdly, current A-share valuations are still at reasonable levels, long-term funds are gradually entering the market, and the market's medium to long-term positive trend is clear. In terms of investment opportunities, it is recommended to focus on: - The first theme, short-term certainty, price increases, and hedging. - The second theme, improvement in supply and demand patterns, industry profit recovery logic, and dividend assets with a safe margin of valuation, such as basic chemicals, steel, building materials, and finance sectors. - The third theme, the transformation of the underlying logic of the domestic economy towards new quality production forces, with a focus on storage, computing power, consumer electronics, communication equipment, communication services, semiconductors, and defense industries. Additionally, for the consumer sector, it is recommended to focus on sectors with strong domestic and external demand expectations, such as light industry, textiles and apparel, household appliances, and agriculture.