CITIC Securities: After breaking through 3600 points, increase allocation to Hankou and increase allocation to Kechuang, while continuing to rotate around the non-ferrous and other sectors.

CITIC Securities research report indicates that the market has recently exhibited typical characteristics of a bull market. CITIC Securities has compiled the answers to 5 questions that investors have been asking frequently. 1. Where is the recent incremental capital coming from? Initially, CITIC Securities observed a widespread and general inflow of institutional funds. As the market began to make money, it was found that retail investors were also accelerating their entry, and with the heat of the market and the reinforcement of the anti-internal circulation narrative logic, some conservative funds may also be passively adjusting their positions. 2. How long does a bull market with a deviation between fundamentals and liquidity usually last? Historical analysis shows that since 2010, a bull market with a deviation between fundamentals and liquidity typically does not last more than 4 months. Whether this current bull market can evolve into a longer-lasting comprehensive bull market depends on the subsequent improvement in fundamentals. 3. Which undervalued stocks can participate in the rally under the anti-internal circulation narrative? In this round of rally against internal circulation, simply copying the sustainability of the upstream price increases in 2021 may be limited, but there are still some undervalued cyclical manufacturing stocks with low valuation and low attention in the market, and the report provides a systematic summary. 4. Will the Sci-Tech Innovation Board (STAR Market) see a rebound after the World Artificial Intelligence Conference? CITIC Securities believes that the 2025 World Artificial Intelligence Conference is expected to catalyze various sub-sectors, and with the continuous advancement of the STAR Market's "1+6" policy and financial support policies related to technological innovation, the STAR Market, which has been stagnating since April this year, is expected to see a rebound. 5. What should our strategy be after breaking through 3600 points? Increase allocation to growth stocks and Sci-Tech Innovation Board stocks, while continuing to rotate at the industry level around non-ferrous metals, communications, innovative drugs, defense industry, and gaming.