A shares continue to fluctuate at high levels. Institutions believe that the New Year market is promising.

Last week, the A-share market saw a rebound, with most major indexes closing higher. The market focus was mainly on the TMT sector, with the technology sector rebounding in an oversold background. However, looking at the overall market in November, A-shares showed a feature of high and low switching, with funds flowing from high valuation growth stocks to low valuation cyclical stocks and dividend assets, and defensive sectors becoming more attractive. With only one month left in 2025, this week's institutional strategy outlook report believes that various factors that have previously disrupted the market have gradually eased, and the volatility of the A-share market has declined. Overall, the market is optimistic about the economic fundamentals and equity market expectations for 2026, and risk appetite for funds may gradually increase, with the December year-end market ushering in a period of layout.