Huatai Securities: In the second half of the year, we continue to be bullish on high dividend stocks represented by banks and insurance, as well as cyclical industries represented by metal new materials.

Huaxin Securities released its mid-term strategy for 2025, stating that loose liquidity will support the market from falling, but slow recovery of internal growth momentum and balancing of short- and long-term policies will constrain the market from rising rapidly. Profit forecasts for all A shares show that the second half of the year will likely establish a trend of improvement in profits since the bottom in 2024Q4, which could become an important force for the market to break through to the upside. In terms of industry allocation in the second half of the year, it is recommended to prioritize finance over growth over consumption over cyclical sectors; continued optimism is held for high-dividend industries represented by banks and insurance, as well as prosperous industries represented by metal new materials. The growth active theme is expected to rebound after an initial suppression.