A recent research report from CITIC Securities highlights a significant market transition from a stock-centric to an incremental market dynamic since June. Despite robust performance and heightened volatility in A-share sectors favored by institutions, the manufacturing sector has lagged due to pricing pressures. The current anti-competitive trend aligns with the long-term vision of the 'Belt and Road' initiative, with incremental fund inflows anticipated to invigorate underperforming sectors. Furthermore, Hong Kong stocks are re-emerging as a valuation trough, intensifying allocation pressures. The trend towards expanding insurance funds' investment scope indicates that southbound funds may regain momentum. CITIC Securities recommends augmenting Hong Kong stock allocation at this juncture, while A-share sectors such as non-ferrous metals, AI hardware, innovative drugs, games, and the military industry are expected to continue rotating. The manufacturing sector, currently undervalued, is poised for a recovery fueled by incremental liquidity and supportive policies.