Huatai Securities A-share strategy: Short-term recommendation is balanced allocation, waiting to absorb funds after the release of pressure from the crowded technology sector.

Huatai Securities research report shows that the market was volatile and differentiated last week, with the technology sector pulling back and funds rotating towards low position sectors. Trading concentration fell slightly, and some weak traditional industries from the previous period saw a rebound in the second half of the week. Currently, TMT turnover ratio remains high. It is recommended to continue observing the impact of the Federal Reserve's policy expectations, overseas tech stocks' deleveraging progress, industry progress, and the landing of large IPOs. In the short term, it is suggested to maintain a balanced allocation, wait for the release of pressure from crowded technology sectors, and consider reducing portfolio concentration. Directions to consider include: 1. Banking and other dividend-paying stocks benefiting from the repricing of macro risks; 2. Various industries such as metallurgical raw materials, minor metals, energy metals, maritime equipment, and commercial vehicles showing cost-effectiveness in terms of excess returns after first-quarter results compared to profit expectations.