Brokerage Morning Meeting Highlights | Post-holiday A-share confidence is expected to gradually recover, increase the allocation weight to domestic demand.

On September 30, the three major indices closed mixed. A-shares ended September with the main indices all posting monthly declines, showing an overall trend of adjustment on shrinking volume, with the ChiNext Index and Shenzhen Component Index falling more than 8% for the month, and the STAR 50 Index dropping more than 9%. Both the STAR Market and ChiNext indices recorded their largest single-quarter declines, with the STAR 50 Index plunging 30.7% in the third quarter. On the board, sectors such as pharmaceuticals, baijiu, agriculture, and real estate showed strong resilience; on the downside, components, semiconductors, and other sectors led the declines. As of close, the Shanghai Composite Index rose 0.31%, the Shenzhen Component Index fell 0.11%, and the ChiNext Index fell 0.23%. CICC believes that post-holiday A-share confidence is expected to gradually recover; KAIYUAN SECURITIES believes in continuing rebalancing and increasing the weight of domestic demand; East Money Information Securities believes in actively seizing opportunities and selecting structures. CICC: Post-holiday A-share confidence is expected to gradually recover During the A-share market closure, the decline in U.S. nonfarm payroll data led to cooling expectations for U.S. rate hikes, Hong Kong stocks first pulled back and then rebounded, and the Nasdaq continued to hit new highs. Combined with overseas market performance during the holiday, coupled with recent relatively stable domestic economic data, and with third-quarter earnings expected to provide some performance support, investor confidence post-holiday is expected to gradually improve, and A-shares may see a "good start." KAIYUAN SECURITIES: Continue rebalancing, increase the weight of domestic demand In the short term, crowding has clearly eased, and the baseline path remains "reboundhigh-volatility oscillation," so continue to grasp rebalancing opportunities brought by the broadening of the money-making effect. In terms of allocation: (1) Continue to focus on small and micro-cap stocks, with attention to the CSI 2000 and Wind Micro-Cap Stocks; (2) Technology currently has good soil for a rebound, and adhere to "favor large caps within small caps, emphasize upstream, domestic > overseas"; (3) For industry rebalancing, continue to focus on nonferrous metals, chemicals, pharmaceuticals, agriculture, and shipbuilding, while increasing attention to real estate and the real estate consumption chain; (4) Banks, utilities, power, and other high-dividend directions continue to have portfolio allocation value. In the medium term, the bull market logic has not yet been broken, but expectations for its slope need to be moderately lowered, and continue to seek the intersection of "secondary ignition within technology + domestic demand policy uplift + improvement in fundamentals of low-position industries." East Money Information Securities: Actively seize opportunities, select structures A-shares digested some risk factors before the holiday, the cost-effectiveness of high-quality assets is gradually emerging, and overseas factors during the holiday were overall positive. It is recommended to actively explore investment opportunities and carefully select structures. In terms of allocation, the overall preference is for style balance, with attention to valuation repair opportunities in high-quality blue chips, while selecting directions with relatively high overall win-rate and odds cost-effectiveness within growth. Recommended sectors to watch: banks, non-bank financials, coal, oil shipping, nonferrous metals, pharmaceuticals, etc.; in growth, carefully select structures such as domestic computing power, AI downstream, defense, and electrical equipment and new energy, etc.; in terms of themes, pay attention to commercial aerospace, etc. This article is reprinted from "Cailian Press," GMTEight editor: Chen Siyu.