CITIC Construction Investment: Focus on sectors with stronger fundamental certainty, await the expectation calibration brought by the landing of internal and external uncertainties.

CITIC Construction Investment pointed out that the A-share market stabilized as a whole after a low opening this week, showing a certain resilience. The market is expected to see a rebound in the short term, but the upward space is limited, and the range-bound pattern may continue. The main reason is that the market is facing a certain degree of financial constraints, and investors have a strong wait-and-see attitude. Overseas liquidity expectations are fluctuating, but the threshold for violent interest rate hikes still exists. Overall, the A-share market is facing a complex internal and external environment, which may exert certain pressure on risk appetite. The market is expected to show a range-bound pattern with a "ceiling on top and a floor underneath". The core of the allocation strategy is short-term rebalancing, with moderate control of high volatility exposure. Focus should be on sub-sectors with stronger fundamental certainty in the business cycle, while waiting for expectations calibration brought about by internal and external uncertainties. Key industries to focus on include AI, non-ferrous metals, coal, non-banking financials, and new energy.