Shanghai Composite Index is striving for the 4000 points mark, institutions predict that the style will tend to balance at the end of the year.

Since November, the Shanghai Composite Index has been fluctuating around the 4000 point level, with rotation between sectors and within sectors accelerating significantly. Main themes such as AI, new energy, natural resources, and consumer goods have all shown some performance, but the sustainability of the uptrend is relatively limited. According to brokerage research reports, the recent wide fluctuations in the A-share market are mainly affected by internal and external factors. On one hand, the risk preference in overseas markets has cooled rapidly, which has had a certain impact on the A-share market; on the other hand, the Shanghai Composite Index has encountered temporary resistance at the 4000 point level, and there is still a need for valuation digestion in sectors that have accumulated large gains in the previous period. Looking ahead, institutions believe that the market will continue to maintain a range-bound pattern in the short term, and the phase of market style rebalancing may continue for several months. From a longer-term perspective, sectors such as TMT and advanced manufacturing representing technology growth are still expected to lead the index breakthrough.