EB SECURITIES: A-share market is still in a bull market, but short-term or wide fluctuations may occur.

EB Securities released a research report stating that the overall direction of the A-share market may still be in a bull market, but in the short term, it may enter a wide-ranging consolidation phase. Compared to previous bull markets, the current index still has significant room for growth, but under the guidance of the government's policy towards a "slow bull market", the duration of the bull market may be more important than the extent of the increase. However, in the short term, the market may lack strong catalysts, and combined with the fact that some investors may adopt a more cautious approach towards the end of the year, the stock market may mainly consolidate in the short term. Key points from EB Securities: - The performance of the A-share and Hong Kong stock markets in November fluctuated. - In November, the main A-share indexes generally declined, with the technology innovation 50 index experiencing the largest decrease of 7.1%, while the Shanghai 50 index had the smallest decrease of 1.3%. - The Hong Kong stock market also showed fluctuating trends in November, influenced by factors such as expectations of Fed interest rate cuts and concerns about AI bubbles. Regarding the A-share market, EB Securities believes that the market is still in a bull market, but may experience wide-ranging consolidation in the short term. In the short term, the market may lack strong catalysts, and investors' behavior towards the end of the year may be more cautious, leading to a consolidation trend in the stock market. In terms of allocation, EB Securities suggests focusing on defensive and consumer sectors in the short term, and continuing to focus on the TMT and advanced manufacturing sectors in the medium term. In a fluctuating market, sectors that have been stagnant in the previous period may perform better, such as high-dividend and consumer sectors. In the medium term, with liquidity driving the market, the TMT sector may become the main focus, and in the current context, advanced manufacturing is worth paying attention to. For the Hong Kong stock market, EB Securities recommends a "dumbbell" allocation strategy, with a focus on technology growth and high-dividend strategies. They suggest keeping an eye on concepts related to autonomous controllable, semiconductor, and high-end manufacturing industries, as well as internet technology companies with independent growth prospects. Additionally, they recommend continuing to pay attention to high-dividend, low-volatility strategies in sectors such as communications, utilities, and banking, as these strategies can provide stable income. Risks include unexpected policy changes and events that pose higher risks than expected.