Huatai Securities A-share strategy: Volatility rises, layout in certainty sectors.

Huatai Securities A-share strategy pointed out that last week, the demand for some funds to cash in and the increasing proportion of turnover in small and medium-sized market cap stocks constituted the underlying color of the market's adjustment in the second half of the week. Currently, the market has entered a period of lack of guidance from calendar effects, and the visibility of both upside and downside risks is relatively low. "Top has resistance, bottom has support" may still be the benchmark operating status for the market in the short term. With the overseas tariffs fluctuating and domestic funding facing disturbances, market volatility may rebound. In terms of allocation, it is suggested to grasp the certainty in volatility. Firstly, under the expectation of a mild easing of Sino-US trade friction and no devaluation of the Renminbi, or even expectations of appreciation, focus on the large financial and consumer sectors. Secondly, the overall technology sector remains a medium-term theme, and opportunities can be sought to adjust positions accordingly.