According to a research report from Huatai Securities, the A-share market staged a rebound from its recent trough last week, largely driven by enhancements in both domestic and international liquidity conditions. Notably, there was a substantial net inflow of allocation funds, exemplified by broad-based ETFs. Concurrently, the U.S. inflation figures for November disappointed, fueling hopes for interest rate reductions. Moreover, the Bank of Japan implemented a dovish approach to raising interest rates, collectively fostering a conducive external environment. Huatai Securities maintains that, despite the current market phase being marred by uncertainties in fundamental expectations and a lull in policy and economic data releases, the anticipated spring rally next year remains a promising prospect following the preceding market corrections. Factors that could potentially expedite the subsequent market upswing include the repositioning of foreign capital post-Christmas, a flurry of preliminary annual report announcements in mid-January, and a possible reduction in the reserve requirement ratio in January. Regarding allocation strategies, Huatai Securities advises maintaining a stance geared towards the spring rally, with a focus on sectors showing promising growth trajectories, such as the AI ecosystem, batteries, non-ferrous metals, certain chemicals, the military sector, mass-market and service-oriented consumption. Additionally, it suggests moderately increasing allocations to thematic investment options and export chains that stand to benefit from seasonal trends.