Huatai Securities: In September, the catalytic effect of industries intensified, and technology may still perform well.

Huatai Securities research report indicates that with the extension of the short-term tariff exemption period and expectations of a Fed rate cut, risk appetite is expected to continue to improve. The medium-term market may gradually shift towards being driven by fundamentals, despite a slight slowdown in non-financial performance in the first half of the year. Macro and medium-term data indicate a recovery in the economy. The valuation differentiation factor for all A shares has increased to a high level, with the TMT sector accounting for over 40% of trading volume. The sector rotation in the second half of the week reflects the need for capital to switch between high and low following rapid increases in the short term. In historical strong industry trend markets, the proportion of trading volume often increases, and in September, the industrial catalysis may still perform well in technology. In terms of allocation, continue to focus on strong directions such as AI, pharmaceuticals, anti-hollowing, and military industries, and allocate high to low, while also benefiting from the appreciation of the renminbi, relatively low valuations, and chips in consumption, non-banks, and new energy.