Macquarie: Currently prefers H-shares more than A-shares. Recommends keeping an eye on stocks of BYD Company Limited (01211), ANTA SPORTS (02020), and HAIDILAO (06862).

Macquarie released a research report stating that unless trade negotiations or geopolitical relations break down, the inflow of funds into emerging markets in the next six months, coupled with improved liquidity in H-shares, will bring tailwinds; the A-share market may receive support as well, as the anti-inner cycle policies in the upstream industries drive a 20% year-on-year growth in industrial profits in August, and more sporadic stimulus measures for consumption may be introduced before the end of the year. The bank believes that the focus of the upcoming "Fifteen Five" plan is to strengthen social welfare, which is expected to attract structural funds into the stock market domestically, along with the possible implementation of reforms in family savings, insurance, and private pensions, potentially adding around 43 trillion yuan of potential investment to the stock market in the next decade, equivalent to 41% of the total market value of A-shares in the third quarter of this year. The bank currently prefers H-shares over A-shares, as quality rotation and IPOs will attract more investor attention to the Hong Kong stock market. However, the bank still sees promising performance for A-shares in the medium term, as policy reforms will drive fund inflows. In terms of sectors, the bank favors internet and consumer services, but will avoid the energy sector and stocks with low Beta and high yields. The bank has selected high Beta and high-quality stocks that are relatively lagging in price, including BYD Company Limited (01211), Wuliangye Yibin (000858.SZ), ANTA SPORTS (02020), and HAIDILAO (06862).