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.

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.