[China Galaxy Securities: Short-Term Market Volatility May Increase, Focus on Structural Investment Opportunities] A research report from China Galaxy Securities suggests that the A-share market has entered a period of "volatile" activity since the second half of December 2025. Firstly, overseas uncertainties have subsided, with the Federal Reserve's interest rate meeting and the Bank of Japan's interest rate hike decisions being implemented. Secondly, the appreciation of the RMB exchange rate has strengthened the attractiveness of RMB assets, creating conditions for a recovery in market risk appetite. Thirdly, intensive catalysts at the industry and policy levels have driven thematic rotation and upward movement. Systematic policy deployments in areas such as commercial aerospace have attracted precise investment. Driven by multiple positive factors, the momentum of capital inflows has increased, with the A500 ETF experiencing rapid capital inflows, insurance funds supporting new premium income entering the market during the "opening red" period, and the balance of margin trading and securities lending continuing to grow, exceeding 2.6 trillion yuan. The report recommends focusing on "two main lines + two auxiliary lines." The first main line focuses on the rotational upward opportunities in the technology innovation and growth sectors, with key areas of the "15th Five-Year Plan" such as artificial intelligence, androids, new energy, controlled nuclear fusion, quantum technology, and aerospace worthy of attention. The second main theme is the moderate implementation of anti-involution policies, with a clear path for profit recovery in the manufacturing and resource sectors. Key sectors to watch include non-ferrous metals, basic chemicals, and power equipment.
