According to the A-share strategy research report by Huatai Securities, the current A-share market is likely experiencing a phase of oscillation, characterized by volatility and rebalancing. Institutional positioning in sectors that excelled in the early stages has not yet been fully absorbed, which restricts the further expansion of the main market trend. Nevertheless, improving prospects are gradually extending to a broader range of industries, indicating that structural opportunities persist. Therefore, when it comes to allocation strategy, it is prudent to avoid the pursuit of highly crowded sectors and instead, direct attention towards niche areas that exhibit 'allocation gaps.' Specifically, (1) within the AI industry chain, emphasis should be placed on segments like communication equipment, where stock prices are reasonably aligned with earnings expectations. Simultaneously, keep a watchful eye on sectors with improving prospects, such as AI power infrastructure, semiconductor materials, and equipment. Sectors with balanced pricing, such as copper connections and MLCCs (Multilayer Ceramic Chip Capacitors), await further catalysts to drive growth; (2) in non-technology sectors, sectors showing marginal improvement in prospects but limited stock price appreciation, such as shipping, batteries, construction machinery, and agriculture, warrant close monitoring; (3) the weak USD environment acts more as an external catalyst for structural market trends. Industries such as industrial metals (e.g., copper and aluminum), as well as innovative pharmaceuticals, which are in line with improving earnings prospects, deserve attention; (4) dividend assets should continue to form the bedrock of portfolios, with a preference for the banking and transportation sectors. Meanwhile, the allocation to coal can be moderately increased based on its improving prospects.