According to Huatai Securities' analysis, at the macroeconomic level, external pressures eased last week as U.S.-Europe relations showed signs of improvement, and expectations for a Federal Reserve interest rate cut were fully adjusted. Meanwhile, domestic macroeconomic data remained steady, with high - frequency real estate data displaying signs of enhancement. Regarding capital flows, both foreign and southbound capital continued to pour in. In the fourth quarter, public equity holdings in Hong Kong stocks declined to 23%, substantially alleviating potential selling pressure. The pace of IPO fundraising and the expiration of share lock - up periods slowed down. The market sentiment index reverted to a neutral stance, with bullish expectations gaining momentum. It is anticipated that the market will sustain its rebound in the first quarter, with the emphasis on the extent of the rebound rather than its pace. For industry allocation, the recommendation is to concentrate on the AI industry chain (encompassing semiconductors and software) and innovative pharmaceutical sectors. Additionally, it is advisable to gradually accumulate high - quality consumer leader stocks and overweight the upstream and midstream sectors of the cyclical and power chains.