Huatai Securities pointed out that last week, the A-shares continued to rebound with reduced volume. In terms of liquidity, the expectations for the Federal Reserve's interest rate cuts have warmed, and the effectiveness of domestic fundamental pricing has improved, leading to a better liquidity environment. The net outflow of active foreign capital has narrowed, ETF issuance and subscriptions have rebounded, and the adjustment of insurance risk factors may further open up space for insurance capital to allocate equity assets. In terms of prosperity, the recent improvement in TMT and upstream resource sectors is notable. Attention should be paid to clues from the AI chain, price increase chain, capital goods, consumer goods, and infrastructure chain. The "spring restlessness" may start earlier in mid to late December, suggesting a balanced allocation between growth and cyclical sectors. From a mid-term perspective, large financials and some high-cost-performance consumer sectors may still be the foundational choices for the revaluation of Chinese assets
