A-share opening express | Shanghai Composite Index fell by 0.02%, precious metals and other sectors led the gains

The three major A-share stock indexes opened with mixed gains and losses, with the Shanghai Composite Index falling by 0.02% and the Growth Enterprise Index rising by 0.21%. On the market, precious metals, solid-state batteries, photovoltaic equipment and other sectors led the gains. Institutional Views on the Future Market: CITIC SEC: Diminish Market Volatility and Adjust Portfolio Structure Three market liquidity characteristics have been observed both domestically and overseas recently. Characteristic one: ETF fund flows are clearly differentiated, with broad-based decreases and industry/theme increases, A-share decreases and Hong Kong stock increases; Characteristic two: the market may be entering the final intensive redemption phase for active mutual fund products since 2021; Characteristic three: overseas high-debt fund rates and passive interest rate reduction pressure from central banks coexist. In terms of allocation strategy, it is recommended to diminish market volatility, adjust portfolio structure, and continue to focus on structural opportunities in consumer electronics, resources, innovative pharmaceuticals, chemicals, and gaming. China Securities Co., Ltd.: Bull Market Consolidation Period, Switching between High and Low Tracks is Normal From September 2nd to 4th, there was a three-day consecutive decline, marking the first consolidation period of the slow bull market. This is mainly due to the overheating of the market since the end of August, with significant funds concentrated in the TMT sector leading to a deterioration of the trading structure. On the other hand, positive factors such as important activities at the beginning of the month and expectations of a Fed rate cut have already been or are close to being realized, leading to a decrease in risk appetite. Based on statistics from 11 bull markets, we believe that in the background of a "slow bull" market, the index will experience a mild pullback and a longer consolidation period, showing a trend of oscillation and repair. During the consolidation period, dividend sectors with decreasing risk appetite should continue to be held as core positions. The current core logic of the AI computing power theme from the previous round has not been refuted, and attention should be focused on the track direction with previous lagging gains but still valid prosperity logic. Sinolink: Market is likely to enter a period of sideways volatility The current market volatility remains high, and based on past experience, to initiate a new round of trend-based upward movement or break through previous highs will require new catalysts. The probability of the market entering a period of sideways volatility is high. Attention should be paid to the opportunities in the subsequent market direction of power equipment and non-ferrous metals. Global pro-cyclical trading in the fourth quarter will be the catalyst for the subsequent market. For gold, which has reached a new high, its current price has slightly preempted real interest rates, and a new driving force can only be formed with a long-term expectation of rising inflation. Industrial goods and gold from inflation sources are equally important. After the gold price reaches a new high, gold stocks in this round, which are in a historically low valuation position, will have more elasticity than the gold price. The article is reprinted from "Tencent Select Stocks," GMTEight Editor: Xu Wenqiang.