According to a research report released by CITIC Securities, the market experienced heightened volatility last week, with widespread indices continuing their downward trend. Previously high-flying technology stocks, which had enjoyed substantial gains, underwent sharp corrections. This development not only dispelled short-term panic but also accelerated the rotation within the market. There was a notable cross-sector reallocation of existing capital, characterized by a distinct shift from high-valuation to low-valuation positions and an increased tendency towards style migration. Capital flowed out of high-flying small-cap stocks that lacked earnings support, redirecting towards high-dividend defensive sectors as well as undervalued consumer and medical stocks as investors sought risk aversion.

From a catalytic and timing perspective, the thematic fervor surrounding AI downstream applications, the Changxin industrial chain, securities firms, and the medicine and biology sector is poised to escalate. Taking into account the prevailing market environment, catalytic factors, and quantitative indicators, it is prudent to concentrate on these four major thematic directions.