Xin Lang Zheng Quan·2025-04-07 04:33Group 1 - The core viewpoint is that the recent implementation of "reciprocal tariffs" by the Trump administration, which includes a 34% tariff on Chinese imports effective April 9, has led to significant market volatility and a strong response from China, which announced a similar 34% tariff on U.S. goods starting April 10 [1][2] - The A-share market's significant fluctuations are attributed to China's unexpected countermeasures and the sharp decline in overseas markets, which has created a global panic [1][2] - The potential for a market rebound exists, as the current downturn may be overly pessimistic, especially considering the upcoming U.S. midterm elections in November 2024, which could pressure Trump to reconsider further tariff increases [2] Group 2 - Investors are advised to focus on cyclical sectors, such as infrastructure, real estate, and consumer recovery, due to their low valuations and smoother domestic demand expansion [2] - If China engages in counter-cyclical measures, such as leveraging in real estate and city investment, it could lead to a more certain improvement in fundamentals, attracting foreign capital back [2] - The core logic for this year emphasizes domestic demand expansion, which is seen as beneficial for stock assets, suggesting a preference for equities over bonds due to limited room for declines in ten-year treasury yields [2]