Huatai Securities: Within tech stocks, prioritize optical communications, PCBs, and select leading domestic computing power players.

Huatai Securities' A-share strategy notes that A-shares may currently be in a phase of range-bound repair. Given that the earlier correction has already released considerable valuation and trading risk, and historical patterns suggest a high probability of recovery after the pre-holiday pullback once trading resumes, the odds for holding positions through the holiday have improved this time around. However, as U.S. employment, PMI and other data may be released in concentrated fashion during the holiday, the focus of allocation should perhaps shift toward areas with higher earnings certainty and relatively sufficient valuation digestion: 1) Within technology, prioritize optical communications, PCB and certain domestic computing power leaders that have seen relatively sufficient valuation digestion and have high earnings visibility, reducing exposure to names facing earnings downgrades and pure-theme plays; 2) At the same time, pay attention to the chemicals and papermaking chains, which have relatively low allocation and improving price spreads, using dividend assets as a portfolio stabilizer. Before the holiday, it is advisable to retain core positions with strong fundamentals and appropriately compress high-volatility trading positions; the importance of position structure outweighs that of total position size.