Brokerage Morning Meeting Highlights | The New Year's market has already started, and the market is expected to confirm its direction before the holiday.

Last Friday, the market rose and then fell back, with the Shanghai Composite Index slightly up by 0.1%, recording 8 consecutive gains. The trading volume of the Shanghai and Shenzhen stock markets was 2.16 trillion yuan, an increase of 235.7 billion yuan from the previous trading day. In terms of market trends, there was rapid rotation of hotspots, with over 3400 stocks falling across the entire market. In terms of sectors, the commercial aerospace concept saw another outbreak, the lithium battery industry chain strengthened, and the Hainan free trade concept saw repeated activity. On the downside, the paper, liquor, and mining hardware sectors saw the biggest declines. By the close, the Shanghai Composite Index rose by 0.1%, the Shenzhen Component Index rose by 0.54%, and the ChiNext Index rose by 0.14%. During today's morning meeting of securities firms, East Money Information Securities believes that the concept of "price increase" is expected to further ferment; China Securities Co., Ltd. stated that the year-end market has already started; Guosheng believes that the market is expected to confirm its direction before the holiday. East Money Information Securities: The concept of "price increase" is expected to further ferment Recently, the Shanghai Composite Index has seen "eight consecutive gains", with active themes showing characteristics of a spring rally to a certain extent. On the other hand, looking at the recent market trends, the rotation of industries is high, showing that funds have not formed a clear consensus on the leading prosperous themes. If this round of market rally is to be sustainable and far-reaching, the mid-term thematic focus is indispensable, but the most significant change in fundamentals may not be on the demand side, but on profitability. Although there have been limited changes on the demand side recently, the price rally driven by liquidity and supply-side changes has quietly spread across various industries, accompanied by rising prices of various resources and the implementation of policies to prevent downward pressure on the midstream and downstream sectors. As a result, the concept of "price increase" is expected to further ferment. China Securities Co., Ltd.: The year-end market has already started The year-end market rally has been driven by three major expectations: under the unanimous optimistic expectations of institutional investors, the spring rally next year is expected to start early; the adjustment of overseas AI models has ended, the strategic focus of the US is shifting westward, overseas liquidity and risks continue to improve; and recently, there have been numerous industry policies and events announced during the 14th Five-Year Plan period, leading to high expectations among investors. In terms of industry allocation for the year-end market rally, the focus is on the catalysts of the non-ferrous metals and AI computing power industries, with the commercial aerospace sector still leading the market, while secondary hotspot themes include the Hainan Free Trade Zone, controllable nuclear fusion, and humanoid Siasun Robot & Automation. Guosheng: The market is expected to confirm its direction before the holiday Last week, the market fluctuated upward, with the Shanghai Composite Index closing up by 1.88% for the week. In this context, the SME 100, electronics, machinery, and non-banking sectors saw daily-level gains. At present, the main reasons for the ongoing market adjustment are as follows: 1. Currently, only the Shanghai Composite Index and the STAR 50 have confirmed daily-level declines in the size indices. Historically, other size indices are likely to follow suit in confirming daily-level declines; 2. The SSE 50, CSI 300, CSI 500, ChiNext Index, and SZSE Component Index have already stopped reaching new highs, with a double top pattern emerging, indicating a high probability of future declines; 3. Although there are currently 14 industries in a state of daily-level decline, half of the industries are still in a state of daily-level growth, with the non-ferrous metals, oil and petrochemicals, chemicals, building materials, light industry, electrical equipment, and new energy sectors all in a state of over-rise. However, as the SME 100, non-banks, electronics, and telecommunications sectors have recently reconfirmed their daily-level gains, and the Shanghai Composite Index is on the verge of confirming a daily-level increase, the market is expected to confirm its direction before the holiday; for medium-term investors, it is still possible to counter-cyclically position themselves. This article is reprinted from "Cai Lianshe". GMTEight Editor: Jiang Yuanhua.