Highlights of the securities morning meeting: Market focus on industries with capacity clearing, cyclical directions, and defensive sectors.

Yesterday, the market opened low and closed high, with the Sci-Tech Innovation 50 Index opening nearly 3% lower and surging over 1% in the afternoon to turn red. The turnover of the Shanghai and Shenzhen stock markets was 2.35 trillion, a decrease of 160.9 billion from the previous trading day. In terms of sectors, rare earth permanent magnet, non-ferrous metals, and semiconductor sectors performed well, while the automotive parts and gaming sectors saw declines. By the end of yesterday's trading, the Shanghai Composite Index was down 0.19%, the Shenzhen Component Index was down 0.93%, and the ChiNext Index was down 1.11%. At today's morning meeting of securities firms, Huatai pointed out that the market is focused on industries undergoing capacity clearing, pro-cyclical directions, and defensive sectors. China Securities Co., Ltd. stated that with strengthened controls on rare earth exports, they continue to see investment opportunities in strategic metals. Galaxy Securities proposed focusing on the weak recovery of the food and beverage industry during National Day and Mid-Autumn Festival, and paying attention to third-quarter performance. Huatai: Market focuses on industries undergoing capacity clearing, pro-cyclical directions, and defensive sectors Huatai pointed out that after the holiday, the market showed volatility, with trading enthusiasm still strong and trading funds being the main source of incremental funds. The number of investors participating in trading has increased, and retail investors and margin financing funds have turned to net inflows, with the average daily filing of private equity funds still at a high level since July. The volatility may mainly come from new public offering of mutual funds, with the scale of new public offerings falling due to seasonal fluctuations last week. With the rise in mutual fund net asset value, the new public offering of mutual funds may still be on an upward trend. In terms of allocation, investors' demand for TMT, mainly based on overseas computing power chains, has increased, and the market is focused on industries undergoing capacity clearing, pro-cyclical directions, and defensive sectors. China Securities Co., Ltd.: Strengthened controls on rare earth exports, continue to see investment opportunities in strategic metals China Securities Co., Ltd. stated that in terms of antimony, exports have not been released yet, and as an important military metal, the strategic value of antimony is highlighted in the backdrop of big-power games. For tungsten, the export of tungsten trioxide continued to recover in August, approaching the monthly export volume before controls, while ammonium paratungstate (APT) exports fell sharply again, and exports have not yet normalized. The second batch quotas of tungsten ores have not been revealed yet and may be directly allocated to production enterprises, similar to the situation in rare earths, highlighting the strategic position of strategic metals. Although the price of tungsten ore has risen rapidly and then slightly retreated, the tight supply and demand situation has not undergone a substantial reversal, and the long-term upward movement of the central price of tungsten ore and its strategic investment value are promising. In terms of molybdenum, the total tender volume of molybdenum iron and steel in China in the first nine months was 118,600 tons (a cumulative year-on-year increase of 6.1%), fully demonstrating the continuous acceleration of China's manufacturing transformation and upgrading from the raw material side. Although mines in Inner Mongolia and other places have resumed production recently, the increase in ore supply is still not significant, and signals of market stabilization and bottoming out are gradually becoming clear. Galaxy Securities: Weak recovery of food and beverage industry during National Day and Mid-Autumn Festival, focus on third-quarter performance Galaxy Securities stated that the food and beverage index in September showed relatively weak performance compared to the broader market, with various sub-sectors experiencing adjustment phases. Looking ahead to October, the market will focus on third-quarter performance, with attention on related high-quality stocks and sectors. Looking ahead to the fourth quarter, with the expectation of the transmission from PPI improvement to CPI improvement, it is recommended to focus on the pro-cyclical direction of supply clearance and valuation bottom. In the medium to long term, it is still recommended to focus on three main themes: 1) growth stocks in new categories and new channels; 2) sectors with relatively stable demand and improved competitive landscape; 3) sectors with cyclical recovery.