Great Wall strategy: In the "stabilizing the bottom line" of the April Political Bureau, there may be an increase in the space for "internal circulation" of strength.

The Great Wall Strategy released a report stating that based on the aspects mentioned in the April Political Bureau meeting, it is relatively in line with market expectations and maintains a strong continuity with previous important domestic meetings. It still emphasizes bottom-line thinking, but the "bottom line" includes an "incremental" element. There is a relatively strong focus on technology and consumption. In terms of intensity and pace, it tends to be gradual rather than expecting a rapid market increase in the short term. Currently, there is no significant improvement in US-China relations, so we need to have policy tools ready to deal with potential risks. At the same time, we need to have a full understanding and focus on the current economy under pressure, focusing on stabilizing the economy while pushing for further technological breakthroughs to create new growth points in the economy. From an asset allocation perspective, it is still recommended to focus on dividend sectors, pay attention to the pricing rules of major asset categories in the economic cycle, and place emphasis on "hard technology" sub-sectors such as semiconductor equipment, AI chips, optical communications, and servers in the technology sector as future economic growth points. These sectors have both upward industrial trends and policy support, making them worth paying close attention to during their cost-effective showcase.