Huatai Securities pointed out that during the holiday season, the surge in overseas-listed Chinese stocks had a notably positive effect on investor sentiment. However, the sudden emergence of geopolitical issues could potentially intensify market divergences prior to the holiday, thereby complicating the prediction of short-term market trends. Despite these uncertainties, Huatai Securities maintains that the disturbances stemming from capital flows and overseas geopolitical factors are likely to be transient emotional reactions and will not fundamentally alter the upward trajectory of the spring market rally.

Supported by the improvement in PMI data, ample market liquidity, and encouraging signals from the policy front, Huatai Securities anticipates a sustained continuation of the spring market rally. From a timing perspective, factors such as heightened investor sentiment, a sufficient capital supply, and favorable economic data are already well-known. Meanwhile, uncertainties like the performance validation of AI-related sectors, potential cuts in the reserve requirement ratio, and the subsequent evolution of geopolitical issues are expected to gradually clarify by late January.

Regarding allocation strategies, Huatai Securities suggests that thematic investing may slightly outperform high-dividend and growth-oriented investment strategies in the short term. Specific attention should be directed towards:

1. Themes driven by catalysts, including commercial aerospace, humanoid robots, domestic computing power, and the military industry;
2. Potential and cyclical high-dividend sectors, such as Hong Kong-listed consumer stocks, power, and the petroleum and petrochemical industries;
3. Growth-oriented sectors with bidirectional improvements in supply and demand, such as batteries, chemicals, and mass consumer goods.