CICC: The micro-trust style may still have structural opportunities in the future, but the strength and sustainability of its advantages may diminish.

The research report of Zhongjin Company stated that looking into the future, the micro-cap style may show marginal weakening advantages, while there still exist certain structural opportunities. Policy support for sci-tech small and micro enterprises will continue to provide a bottom for liquidity expectations, but the diffusion effect of mergers and acquisitions dividends may gradually weaken; although the loose liquidity environment favors high elasticity styles, funds may gradually shift towards profit differentiation, and investors will focus more on high-growth quality small and micro enterprises. The calendar effect shows that after May each year, the likelihood of market strength convergence is high, coupled with pressure from mid-year performance verification, a general rise in the market may be difficult to achieve. Although the current crowded signal of micro-caps has not been triggered, one should still beware of the temporary pullback caused by leveraged funds and emotional fluctuations. Overall, the micro-cap style may still have structural opportunities in the future, but the strength and sustainability of its advantages may decrease. The high elasticity style brings higher volatility, so one needs to be cautious of the diminishing calendar effect and style volatility, and it is recommended to focus on high-conviction quality main lines such as specialization, refinement, and innovation.