Huatai Securities: There are signs of marginal slowing in the momentum of A-shares sentiment recovery.

Huatai Securities research report pointed out that under the dual drive of easing geopolitical conflicts and financial report disclosures, market sentiment quickly rebounded to the optimistic range. However, with recent statements by Powell at the Fed hearing leaning hawkish and the market profit effect not significantly spreading, there are signs of marginal slowdown in the momentum of A-share sentiment repair. In addition, we observed a certain divergence in funds in the telecommunications industry: 1) the proportion of rising stocks has significantly declined, and funds are "contracting" in this industry; 2) the over-allocated ratio of the telecommunications equipment industry has slightly turned negative, and fund divergence in this industry has increased, with thematic funds showing relatively low concerns about crowding, while overall industry allocation funds have reduced exposure. It is worth noting that divergence does not necessarily mean the end of the market's upward trend. Looking back, industries with industrial trends generally show a "" shape in stock price movements, with two peaks appearing during consensus accumulation periods and mid-term divergences. In terms of allocation, it is recommended to continue rotating within the clues of economic recovery, focusing on sectors in the new energy chain, export chain, and AI chain with relatively low overcrowding in the economic direction.