: A-share market returns to volatility. The time to increase allocation of dividend stocks has come.

The Sino-Canadian Fund released its weekly A-share review, stating that trading sentiment in the A-share market declined last week. From a fundamental perspective, domestic demand is still weak, and policy expectations have surged again. From a fund perspective, Northbound data has now been changed to quarterly publication. Other new funds, margin financing, and ETF data all fell on a weekly basis, particularly margin data saw its first weekly decline since October, indicating a possible change in market sentiment. The characteristics of market fluctuations are expected to continue, and in terms of industry, it is recommended to increase allocation in defensive dividend-based industries in the short term. It is now a good time to increase allocation in dividend-oriented stocks amidst market volatility. Last week, as the market adjusted with further developments in the Trump administration and trading factors, active funds and institutional funds were pulling each other back and forth. Market hotspots rotated quickly, and the volatile market continued (with decreasing trading volume, observing whether the volume can stabilize around 1.5 trillion). The Sino-Canadian Fund stated that in terms of policy expectations, it is advisable to take a longer-term view, as uncertainties in international politics and economics have increased since Trump took office, and there is room for fiscal actions, making it more reasonable to have a wait-and-see approach towards relevant US policies. The current suggestion is to observe the market bottoming out situation and policy expectations, retaining a certain position for position replenishment and reallocation. If there is a panic-driven decline, it is recommended to increase allocation towards catalytic directions. The Sino-Canadian Fund recommends short-term allocation in themed areas like infrastructure, distressed market value management, construction and real estate chain, banks, and utilities dividend targets. (It is highly probable that there will be short-term high success rates in the staged market, and in the medium to long term, observing the balance sheet and cash flow statement repair of distressed net asset value companies will determine if they can truly reevaluate their valuations). For most aggressive targets, focus on finding those in low positions with good certainty and strong emotional aspects. The Sino-Canadian Fund believes that the relaxation of regulatory oversight may spawn a new small-cap growth market, which needs to be closely monitored. Focusing on A-shares in the technology sector (catalytic certainty is highest, relatively less influenced by policy, thematic opportunities continue to emerge, positioning can still be done after a decline, looking for targets with fundamental support and high probability of future catalysts, coping with their high volatility, short-term focus on Tesla chain, Huawei chain, low altitude and self-controllable directions, and pro-cyclical flexible targets. If adjustment amplitude is relatively large in the short term, it is recommended to increase allocation. Compared to sectors like technology, the odds are higher. Allocations can be distributed according to the risk bias in real estate chains, consumer sectors, and lower odds-related distressed debt themes) advanced manufacturing, and pharmaceuticals (looking for targets in industries such as new energy that benefit from reduced supply pressure and approaching economic turning points, observing whether the Trump administration will bring about oversold opportunities) related targets.