Huatai Securities A-share strategy: A repair window may emerge after the holiday.

Huatai Securities released an A-share strategy report stating that in the week before the holiday, the market continued to trade in a shrinking range, with high-low switching continuing in terms of structure. Innovative drugs, real estate, and banks were relatively favored, while communications and semiconductors were still digesting crowding. Incremental information during the holiday was generally positive: domestically, the September manufacturing PMI returned to expansion territory, holiday consumption data was stable in aggregate with structural divergence, and on the policy side, fiscal interest subsidies for first-home mortgages were implemented; overseas, under "weak nonfarm payrolls," stocks rose while bonds lagged, and the Nasdaq 100 hit a new high. Combined with the post-long-holiday calendar effect, A-shares had already seen a relatively obvious correction before the holiday, earnings expectations are stable, and a volume-driven rebound is expected after the holiday. However, under high oil prices, the global upward trend in interest rates still weighs on the denominator side. It is recommended to avoid pure theme stocks and high-valuation names, and continue to rebalance along earnings, low crowding, and low volatility.