Brokerage Morning Meeting Highlights | Focus on the mid-term main line in configuration, emphasizing safety margin.

Last Friday, the market experienced a volatile adjustment, with the Shanghai Composite falling more than 2% and the ChiNext Index falling more than 4%. The turnover of the Shanghai and Shenzhen stock markets was 1.97 trillion yuan, an increase of 257.5 billion yuan from the previous trading day. In terms of sectors, the shipping sector, AI applications, and other sectors saw the biggest gains, while the battery, silicon energy, and lithium mining sectors saw the biggest declines. By the close of last Friday, the Shanghai Composite fell 2.45%, the Shenzhen Component Index fell 3.41%, and the ChiNext Index fell 4.02%. At today's securities morning meeting, Huatai pointed out that in terms of allocation, it is important to focus on the medium-term main line and pay attention to safety margin; CITIC SEC stated that the issuance of offshore central bills by the central bank in Hong Kong is helpful in stabilizing the offshore RMB exchange rate; Zhongtai indicated that this round of "anti-compaction" policy may focus more on key areas with global "rare earth-like" characteristics. Huatai: Allocation should focus on medium-term main line, pay attention to safety margin Huatai pointed out that recently, debates over AI narratives, some liquidity tightening, and geopolitical disturbances have increased the market's volatility. Huatai believes that the current market adjustment has begun to have a sense of space, and the corresponding strong support may be present around the central position of the market in late September, followed by improvements in overseas liquidity expectations, reduced domestic funding pressures, and further digestion of market sentiment. The trend environment may be healthier. In terms of allocation, the current market valuation is close to the "reasonable" center, and if there is an over-adjustment, positions can be moderately increased, focusing on the medium-term main line and paying attention to safety margin. It is important to focus on low-end domestic consumption, domestic computing power, innovative drugs, etc., and continue to hold large financial institutions to reduce volatility. CITIC SEC: Central bank's issuance of offshore central bills in Hong Kong helps stabilize offshore RMB exchange rate CITIC SEC's chief economist Ming Ming stated that the offshore RMB has weakened recently. The central bank's issuance of offshore central bills at this time can tighten offshore RMB liquidity, increase short selling costs, suppress speculative trading, and stabilize the offshore RMB exchange rate expectation to prevent the formation of a consensus for unilateral depreciation. Ming Ming also mentioned that although the Federal Reserve is in a rate-cutting cycle until 2025, the US dollar index has shown marginal appreciation since the third quarter. The central bank's maintenance of high issuance of offshore central bills is mainly based on three considerations: first, to meet the normal liquidity management needs and avoid excessive market fluctuations; second, to improve the offshore RMB bond market and enhance its international competitiveness; third, to guard against abnormal cross-border capital flows and maintain financial stability. Zhongtai: This round of "anti-compaction" policy may focus more on key areas with global "rare earth-like" characteristics Zhongtai stated that since 2024, industries such as photovoltaics, batteries, and automobiles have faced intensified low-price competition, attracting policy attention. "Anti-compaction" has gradually become institutionalized from sector initiative. This round of "anti-compaction" policy may focus more on key areas with global "rare earth-like" characteristics, which may have the following three characteristics: first, dominating capacity and technology in the global market, with "irreplaceability"; second, facing the real dilemma of disorderly expansion and low-price competition, threatening the healthy development of the industry; third, having long-term growth potential driven by external demand, and having the potential to evolve into a strategic tool or bargaining chip between countries. This article is reprinted from "Finance Network". GMTEight Editor: Xu Wenqiang.