CITIC Securities: A-shares are still in a bull market, with the pullback providing a good opportunity for allocation.

CITIC Securities Research Report stated that in the short term, A-shares continue to face some resistance while exceeding expectations, with factors such as weaker-than-expected PPI, expiration of the tariff easing agreement, and the completion of valuation adjustments leading to decreased trading volume. However, A-shares are still in a bull market continuation, with the pullback providing a good opportunity for allocation. Currently, overseas marginal improvements, changes in personnel at the Federal Reserve increasing market expectations of interest rate cuts, and a weakening trend of the US dollar are favorable for emerging market stocks, with Hong Kong stocks benefiting relatively more. Under policy signals, measures against overwork culture and broad credit support are expected to facilitate a moderate rebound in prices. Industry rotations have accelerated recently, and it is recommended to focus on low positions in new emerging sectors. Key industries to pay attention to include defense military industry, AI computing power, semiconductors, humanoid robots, non-ferrous metals, transportation, securities firms, and innovative pharmaceuticals.