Guotai Haitong: In December, moderately lean towards growth, focusing on investing in technology sector funds.

Guotai Haitong released a research report stating that in November, the external geopolitical situation has become more complex, and A shares have experienced a temporary pullback. It is recommended that future fund allocations maintain a balanced style overall, slightly leaning towards growth, and focus on the stock selection and risk control capabilities of fund managers. Emphasis should be placed on investing in technology sector funds while also considering assets such as cyclicals and financials. From the perspective of asset allocation, it is advisable to allocate a certain portion to gold and US-related ETFs. Equity Funds: In November, the manufacturing PMI was 49.2%, up 0.2 percentage points from the previous month. The recent major achievements in the China-US economic and trade negotiations have improved China's foreign trade environment, providing support for PMI through the restoration of external demand. In the second to last week of November, the Chinese stock market weakened rapidly and experienced panic selling in a single day. However, in the last week of November, the stock market saw a recovery trend. Opportunities always arise during moments of panic, and the Chinese stock market is expected to gradually stabilize and begin a year-end rally, with plenty of room for growth. Thus, now is a good opportunity to increase holdings. Bullish on the technology growth theme, while keeping an eye on low-entry investment opportunities in major financial and consumer sectors. From a fund investment perspective, the market environment which provides structural investment opportunities in both value and growth styles since 2024 may continue. Therefore, it is recommended that future fund allocations maintain a balanced style overall, slightly leaning towards growth, and focus on the stock selection and risk control capabilities of fund managers. Emphasize investments in technology sector funds while also considering assets such as cyclicals and financials. In terms of selecting fund types, for value style funds, consider Southern Quality Preferred; for growth style funds, consider E Fund Environmental Protection Theme, Manulife Rich Wisdom Steady, for balanced and flexible funds, consider BODA Wealth Tai Preferred Selection, GF Multi-Factor; for thematic funds, consider Guotai Consumer Preferred, Huatai Baoxin Growth Preferred, Invesco China Quality Forever, Fortune New Emerging Industry; and for Hong Kong stock funds, consider Jiashi Hong Kong Advantage. Bond Funds: After this round of overselling, the bond market may enter a period of temporary pullback rebound. However, the strengthening may be limited compared to October. Due to macroeconomic support, it is still possible to participate in the resurgence of certain oversold bonds. It is recommended to continue practicing "enter quickly, exit quickly" and seize structural opportunities. From a fund investment perspective, it is suggested to focus on flexible duration interest rate bonds and reallocate products with high liquidity credit bonds. Additionally, as the equity market warms up, fixed income + funds also have certain allocation value. Varieties to consider include China Bank Pure Bond, Fortune Tianli Growth Bond, and China-Europe Enrichment. QDII and Commodity Funds: Firstly, the differentiated global sovereign credit and weakening of the US dollar credit have pushed central banks around the world to accelerate diversification of reserves. Gold's position relative to the US dollar/US bonds has improved, with global central banks and gold ETF supporting the price of gold. Therefore, from a long-term investment and hedge investment perspective, it is recommended to appropriately allocate to gold ETF. Secondly, in the context of AI industry development and expansion of capital expenditures by technology companies, it is expected that market expectations for US stocks in 2026 will be revised upwards, with the Federal Reserve's monetary policy potentially becoming looser. Overweight is suggested, but caution is needed due to short-term upward risks from intensified market expectations. Therefore, from the perspective of asset allocation, US stocks currently have a relatively high risk-reward ratio and tactical allocation value. For variety selection, consider E Fund Gold ETF, Huaxia Easy Rich Gold ETF, GF Nasdaq 100 ETF, Invesco Great Wall Nasdaq Technology ETF. Focus Funds: Equity Mixed Funds: Southern Quality Preferred, E Fund Environmental Protection Theme, BODA Wealth Tai Preferred Selection, GF Multi-Factor, Guotai Consumer Preferred, Huatai Baoxin Growth Preferred, Manulife Rich Wisdom Steady, Invesco China Quality Forever, Fortune New Emerging Industry, Jiashi Hong Kong Advantage. Open-end Bond Funds: China Bank Pure Bond, Fortune Tianli Growth Bond, China-Europe Enrichment. QDII and Commodity Funds: E Fund Gold ETF, Huaxia Easy Rich Gold ETF, GF Nasdaq 100 ETF, Invesco Great Wall Nasdaq Technology ETF.