Huatai Securities' A-share strategy sees the market in a consolidation/recovery
phase; prior correction has relieved valuation and trading risk, raising the
odds of a pre-holiday rebound, but US jobs and PMI releases over the holiday
increase event risk. Positioning should favor high earnings visibility and
relatively fully digested valuations: within tech, prioritize optical
communications, PCB and select domestic compute leaders and cut exposure to
earnings-downgrade risk and pure-theme names. Also consider underallocated
chemicals and paper chains where price spreads have improved, and use
dividend-yielding assets as portfolio stabilizers. Ahead of the holiday keep
fundamentally strong core holdings, trim high-volatility trading positions;
stock selection matters more than gross exposure.
