Business strategy: After the A-share market reaches a new high, it is expected to transition to a volatile trend.

To prevent the risk of a rapid increase in leverage ratio, last week, the policy countercyclical adjustment was strengthened, the regulatory policy increased the financing margin ratio, some listed companies voluntarily issued abnormal announcement and suspended trading, the China Securities Regulatory Commission held a system work conference for 2026, emphasizing the crackdown on excessive speculation. The regulatory measures to cool down the market are in line with the outflow of ETF funds, promoting the rational return of market sentiment. Looking ahead, after reaching a new high in the previous period, A-shares are expected to enter a period of volatility. In late January, the sentiment around earnings disclosure will significantly heat up, and it is worth paying attention to the direction of exceeding expectations or the impact after the disclosure of earnings. Overall, in terms of style selection, it is recommended to focus on the growth of the overall market, and industry allocation mainly revolves around the spring movement and the layout of forward-looking cues before the annual report.