A-share market opening express | A-share three major stock indexes collectively opened higher: the Shanghai Composite Index rose by 0.05%, with brain-machine interface, medical services and other sectors leading the gains.

A-shares three major stock indices collectively opened higher, with the Shanghai Composite Index up 0.05% and the ChiNext Index up 0.09%. In terms of the market, sectors such as brain-machine interface, medical services, and CRO concepts had the largest gains. Institutional Outlook: Industrial: Verification window for fundamental reversal from March to April next year Future focus on two key points in market interpretation: March to April next year: Verification window for fundamental reversal. On one hand, the details of US trade sanctions on China are gradually being finalized, and external disturbances are stabilizing. More importantly, at the beginning of March, the two sessions further clarify economic goals and incremental policy measures including the deficit rate to inject a "shot in the arm" into the market. After two quarters of counter-cyclical policy efforts, the 2024 annual report and the first quarter report in 2025 are expected to validate the improvement in corporate fundamentals, further strengthening market confidence. July/August 2025: Price correction+interim report economic verification window. If the first quarter reports of next year show no obvious improvement in fundamentals, the next observation point may have to wait until the second half of 2025. Odds perspective: Focus on new quality productivity and mergers and acquisitions. Key focus: 1. New quality productivity. The combination of long-term promotion of economic momentum switching and short-term policy support focus on AI, semiconductors, innovation in culture and science, Siasun Robot&Automation, and low-altitude economy. 2. Mergers and acquisitions. Focus on two core clues, one is the direction of hard technology and new quality productivity represented by TMT, defense, and pharmaceuticals, and the other is the potential industry integration direction led by central state-owned enterprises in securities, steel, and chemicals. Win rate perspective: Focus on domestic demand and advanced manufacturing industry with optimized supply structure. Huaxi: Continues to be optimistic about this year-end market trend and digs deep into the "new quality bull" theme Looking back at the A-share market trends since 2019, the A-share market currently has two important features: first, the monetary policy tone has shifted from "prudent" to "moderately loose" for the first time in many years; second, the supply and demand relationship in the stock market has improved significantly, with net reductions and IPO fundraising at recent lows. In the process of central interest rate reduction, insurance funds are expected to become an important source of incremental funds in the future. This is the most favorable support factor for this year-end market trend, during which the "new quality bull" theme is expected to be repeated. In terms of industry allocation, deep digging into core assets of the "new quality bull" theme, mainly including AI+, humanoid Siasun Robot & Automation, low-altitude economy, domestic substitution, etc. In terms of thematic investments, focus on mergers and acquisitions and market management themes (long-term undervalued central state-owned enterprises valuation repair). This article is reproduced from "Tencent Stock Selection". GMTEight Editor: Liu Xuan.