CITIC Securities: Small-cap growth market is more resilient.

CITIC Construction Investment pointed out that after December 2023, due to the market being temporarily in a state of lack of confidence and tight liquidity balance, small-cap stocks will experience a downward correction, and the market style will shift back towards large caps and value stocks. Since January 2024, hot sectors such as AI and smart cars have repeatedly become active, driving the market style towards small caps and growth stocks. After May 2024, influenced by factors such as geopolitics and macroeconomics, market sentiment further declines, trading volume remains low, and the market style shifts towards large caps and value stocks, with large cap value styles showing resistance to the decline. At the beginning of the year, the market was boosted by concepts such as DeepSeek and humanoid robots, leading to market capital inflows and a shift towards small cap growth styles. In recent times, the market has warmed up, with the Shanghai Composite Index repeatedly hitting new highs and trading volume remaining high, making small cap growth in the market more resilient.