CITIC Securities: The market environment for the upcoming interim report season will be characterized by a downturn in risk appetite and weak fundamentals.

CITIC Securities stated that overall, the market environment for the upcoming interim reporting season is leaning towards wind falling and fundamentals weakening. The first recommendation is still the North American AI hardware supply chain, which can still be participated in after the sector's pullback. It is advisable to pay attention to industries with good interim performance, relatively reasonable valuation, or relatively thorough position clearance. Combining the feedback from industry analysts at CITIC Securities Research Department, we have identified sectors with good interim performance and strong certainty including wind power, gaming, pets, minor metals, rare earth, and securities; from the perspective of position clearance, some sectors in new energy have fallen into a reasonable valuation range, such as lithium battery equipment, lithium batteries, and solar inverters; there are also some new technology hotspots, such as solid-state batteries and solar stacked batteries, which may have unclear long-term prospects, but have relatively good short-term position structures and can also be considered as a current configuration choice. In addition, it is relatively safe to allocate funds to banks that continue to attract capital inflows.