CITIC Securities: Themes such as AI downstream, Changxin Industrial Chain, securities, and pharmaceuticals are expected to heat up.

According to a report from CITIC Securities, market volatility intensified last week, with broad-based indices weakening continuously. The high-tech themes with significant cumulative gains in the previous period experienced a concentrated and deep pullback. Short-term panic selling was concentrated, and the market rotation rhythm further accelerated. Existing funds began large-scale cross-sector and dual-direction portfolio adjustments within the industry, leading to a significant amplification in the shift of structural styles. Funds continued to flow significantly out of high-priced small-cap stocks lacking performance support, shifting towards defensive high-dividend stocks and low-priced consumer and pharmaceuticals for hedging. In terms of catalytic factors and timing, themes such as AI downstream, Changxin industrial chain, securities firms, and pharmaceutical biotech are expected to heat up. Taking into account the market environment, catalytic factors, and comprehensive quantitative indicators, it is recommended to focus on the above four major thematic directions.