CITIC Securities Strategy: Continue to adhere to China's advantage in manufacturing, actively search for varieties with supply and demand gaps.

According to the CITIC Securities research report, the current period of extreme clustering since 2007 ranks second in terms of duration. After the clustering market ends, outperformance often occurs in industries with fundamental logic but are not popular, rather than sectors that are seen as opposite to the popular sectors. If an industry is heavily attracted to AI hardware, there is a high probability that it also has flaws. For the market, the focus should be on the return of fundamental pricing funds and the continued rise in prices of energy-commodity products after the volatility of commodities decreases. At that time, the market will begin to reflect the real economic impact caused by the pricing deadlock, with continued price increases due to supply and demand gaps and unexpectedly high profits becoming the core clues. Domestically, supply-side policies such as "energy conservation and carbon reduction" and the "carbon peaking evaluation method" should not be ignored. The recent release of these two key documents reflects the urgent need to accelerate energy conservation and carbon reduction in a complex global geopolitical environment. In terms of allocation, it is recommended to continue to adhere to China's advantageous manufacturing sector and actively seek out varieties with supply and demand gaps.