CITIC Construction Investment: A-shares may enter a new round of sideways adjustment, pay attention to main trends and style changes.

CITIC Securities believes that in late October, market sentiment is high, A-shares are already at a relatively high position, and may face a period of positive news vacuum in the future, the market may face a new round of sideways adjustment, and it is recommended that investors hold off on increasing their positions. The main themes and styles of A-shares may also switch. The third quarter fund reports show that the electronic industry allocation ratio exceeds 25%, the innovation sector exceeds 40%, and the growth style exceeds 60%, all at the highest level since 2010, which may trigger structural adjustments. In addition, from the perspective of seasonal effects, profit-taking tends to favor value styles at the end of the year. In November, three major clues are favored: 1. Macroeconomic clues: Focus on new energy and non-banking financial sectors; 2. Year-end reallocation: At the year-end, pay attention to industries and sectors with the smallest increase in the first 10 months and low fund allocation ratios, such as coal, petrochemicals, utilities, food and beverage, transportation, etc.; 3. Short-term switching: In the short term, pay attention to media, beauty care, and automotive industries which had the biggest decline in October, limited rise and fall throughout the year, and low fund allocation ratios.