China Securities Co., Ltd.: Short-term dividends are advantageous, the market is quietly waiting for a buying opportunity.

China Securities Co., Ltd. released a research report stating that the market's reaction to tariff numbers has faded, with focus shifting to domestic demand policies. The micro-fundamental support remains strong, providing powerful support to the market's bottom line and limiting downside risks. From the perspective of fund preferences, the value style of the broader market is more advantageous. In the short term, focus will be on dividends and domestic demand, while in the medium term, investors should wait for market entry points and consider positioning in new consumption, autonomous controllable, AI, Siasun Robot&Automation, among others. Key industries to watch include banks, utilities, transportation, social services, retail, beauty care, food and beverage, agriculture, forestry, animal husbandry and fisheries. The Federal Reserve warned of inflation risks, prompting a certain degree of recovery in the A-shares market. Federal Reserve Chairman Powell issued a strong warning about the impact of President Trump's tariff policies, leading to a further cooling of market expectations for a Fed rate cut. Compared to two weeks ago, the probability of the Fed maintaining interest rates in May has increased from 66.7% to 86.8%, while the chances of rate cuts in June and July have decreased. With the market's reaction to tariff numbers fading, the A-shares market has seen some degree of recovery, with industries like retail, real estate, and social services leading the way. Policies are being implemented one after another, and June-July could be a crucial period. Due to strong economic data in March and the first quarter, it is expected that the April Political Bureau meeting will prioritize stability. However, there are still some structural problems facing the macroeconomic recovery, and the possibility of preemptive policy action cannot be ruled out. It is expected that monetary policy will take the lead in April-May, with fiscal policy gaining more traction in May-June. The 90-day exemption period for retaliatory tariffs, the Fed interest rate meeting, and the Political Bureau meeting in July could be decisive points. Fundamental support remains strong, with limited downside risks in the market. The micro-fundamental support remains strong, providing a solid foundation for the market, with a preference for value style stocks. This week, stock ETFs saw an inflow of 35 billion yuan; by April 20, the total loan limit announced by listed companies reached 23.85 billion yuan, the highest level since the establishment of the repurchase and re-loan tools. The long-term investment pilot by insurance funds is also accelerating, with the approved pilot scale increasing from 50 billion to 162 billion yuan, potentially bringing long-term stable growth to the market. In the short term, focus on dividends and domestic demand, and wait for the right time to enter the market. 1) In the short term, focus on dividends and domestic demand, with high dividend low valuation sectors providing a safety cushion amid ongoing trade tensions. The ability to create stable returns for shareholders will become increasingly scarce in the new environment as the emphasis on internal circulation accelerates. Opportunities in consumer services expansion and quality improvement should also be considered. 2) In the medium term, wait for the right market entry points, and position yourself in new consumption and other domestic growth points, as well as in autonomous controllable, AI, Siasun Robot&Automation technology themes. Considering the current market conditions, one of the necessary conditions for growth style dominance is an increase in trading activity, so investors may need to wait for a return of market sentiment and more catalysts from the industry.