Huatai Securities: Mid-term reevaluation of Chinese assets may still be ongoing

Huatai Securities pointed out that last week, the market rose first and then fell back, with risk aversion falling under external disturbances, and trading clues mainly driven by events. In general, the short term may enter a period of consolidation, with the index approaching the upper range of volatility, and the cost-effectiveness of strong stocks decreasing after a full performance, but the revaluation of Chinese assets in the medium term may still be ongoing; high trading congestion does not necessarily mean an immediate reversal, and strong industrial trends often accompany an increase in congestion levels, but currently, the short-term odds are low after the congestion levels rise in small caps, new consumption, healthcare, etc., and adjustments may present better entry opportunities. In terms of allocation, in the short term, it is advisable to switch within the dumbbell based on odds thinking, focusing on stable dividend stocks and defensive assets such as defense and precious metals, as well as technology stocks with relatively low congestion levels and industrial catalyzing prospects, while in the medium term, core assets such as A50, consumer goods, and finance should be considered.