Brokerage Morning Meeting Highlights | The current upward trend of the index has not changed.

Yesterday, the market rose and fell back, with the Shanghai index leading the decline. The total turnover of the Shanghai and Shenzhen markets was 2.55 trillion yuan for the whole day, an increase of 43 billion yuan from the previous trading day. Overall, most stocks fell and few rose, with over 3700 stocks in the entire market declining. In terms of sectors, the pharmaceutical business, energy metals, Chinese medicine, and ST sectors were among the top gainers, while insurance, photolithography machines, military equipment, and multimodal AI sectors were among the top decliners. As of the close of yesterday, the Shanghai Composite Index fell by 1.39%, the Shenzhen Component Index fell by 0.65%, and the ChiNext Index fell by 0.07%. At today's morning meeting of securities firms, CICC suggested reducing allocation to safe assets and increasing allocation to risk assets; Huatai stated that bond conversion is strong, and they are optimistic about the revaluation of environmental protection and testing values; EB SECURITIES believes that the current upward trend in indices has not changed. CICC: Suggests reducing allocation to safe assets and increasing allocation to risk assets CICC pointed out that there have been significant changes in the global political and economic environment, and new trends in asset operations are emerging. CICC believes that the time has come to adjust asset allocation, and they recommend balancing asset allocation, increasing risk preference, reducing allocation to safe assets, and increasing allocation to risk assets. Because China's macro environment is different from that overseas, the path of rebalancing allocation is also different. Huatai: Bond conversion is strong, optimistic about the revaluation of environmental protection and testing values Huatai stated that the National People's Congress Standing Committee has approved the most extensive bond conversion measures in recent years, which will greatly improve the debt pressure and cash flow of local governments. The environmental protection sector has faced a double attack on fundamentals and valuations since 2020, mainly due to the negative impact of local government expenditure, high receivables, and slowing or declining revenue/profit growth. At this stage, it is often difficult for users to cover the actual costs, and most of the revenue of environmental protection companies comes directly or indirectly from central/local finance. Huatai predicts that under the bond conversion push, the long-standing issue of receivables in the industry is expected to significantly improve, thereby entering a positive cycle of cash flow, orders, and profits for sanitation, equipment, water, and some testing companies. EB SECURITIES: The current upward trend in indices has not changed EB SECURITIES stated that on November 12, the market rose and fell back, with indices across the board closing down. After a continuous rise in the market, some funds took profits, which was a major reason for the market adjustment; additionally, the strong US dollar index rose to a four-month high, prompting the depreciation of the RMB exchange rate, while the Hong Kong stock market led the decline, also dragging down the market. Looking ahead, profit-taking after a continuous rise is normal, and the current upward trend in indices has not changed. With the continuous improvement of the economy, the continuous introduction of favorable policies, and ample liquidity, the market is expected to continue its upward trend in a volatile manner. This article is reproduced from "Cai Lianshe." Editor: Xu Wenqiang.