China Securities Co., Ltd.: The spring market is expected to continue after the Spring Festival, it is recommended to hold onto stocks during the festival.

China Securities Co., Ltd. issued a research report stating that the recent spring stock market in A-shares has experienced a phase of adjustment, with internal factors dominating and external factors catalyzing. The internal factors include active cooling down and a wave of sell-offs in broad-based ETFs; external factors include political actions by Trump, the change of leadership in the Federal Reserve, geopolitical conflicts in Iran, and the downturn in global tech stocks due to new tools introduced by Anthropic. The current external disturbances have not had a substantial impact on the fundamental industrial base in China, and the concentrated cooling operation has ended, with market sentiment fully released and adjustments being relatively in place. The spring market is expected to continue after the Spring Festival, and it is recommended to hold stocks during the holidays. Looking at the subsequent industry allocations, focus should be on AI computing power, chemicals, power equipment and energy storage; themes can be based on signals from local meetings, with a forward-looking layout for potential catalyst sectors at the national level meetings. Are external disturbances causing concerns? In last week's strategic thoughts on "Gold and Silver Tremors, Style Transition," China Securities Co., Ltd. clearly stated that "the short-term market faces downward pressure, but the adjustment space for the entire A share index is limited, and it is expected to stabilize before the Spring Festival, ushering in a new round of upward trends before and after the Spring Festival." This week, the market continues the trend of cooling sentiment and declining indices, with industry rotations accelerating, entering a phase of adjustment in the spring market, with external disturbance factors intensifying. In the past couple of weeks, global market trends have been volatile and divergent, with fluctuations in major asset classes. Under the linkage of AI, crypto assets, and precious metals, market concerns about the continuity of the spring market have arisen, and investors are watching how the intensified external disturbances may affect A-shares. China Securities Co., Ltd. believes that the recent adjustment in the A-share market is driven by the internal factors of active cooling and external factors such as the change in the leadership of the Federal Reserve, the situation in Iran, and the decreasing preference for overseas AI sectors. However, due to the weak correlation between A-shares and global markets, the short-term external disturbances are not enough to have a long-term impact on A-shares. Considering that the active cooling control has basically ended, seasonal factors like the Spring Festival and the Two Sessions, China Securities Co., Ltd. sees this adjustment as temporary. With the current sentiment well cooled down, it is expected that the spring market will continue after the holidays, and it is recommended to position oneself opportunistically before the Spring Festival and hold stocks during the holidays. Looking at market performance, global major stock indices are showing a trend of fluctuation and divergence, with industry rotations picking up pace in A-shares, while major asset classes may be volatile but do not affect overall liquidity. In the past month, there have been significant differences in the performance of global stock markets. Previously hot sectors in A-shares such as non-ferrous metals, media, electronics, and communications have seen a pullback, with some resilient...