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Core Viewpoint - The article discusses the current market dynamics in China, highlighting a significant shift in investment styles between traditional sectors (referred to as "old stocks") and technology sectors (referred to as "new stocks") as investors navigate between high growth and certainty [4][10]. Market Performance - In the last trading day of October, technology stocks showed high growth in earnings, while traditional sectors like liquor faced significant declines, yet the market reacted oppositely [3][4]. - The market is experiencing a critical style battle, with funds oscillating between high-growth technology stocks and more stable traditional stocks [4][10]. Historical Context - The article traces the historical shifts in investment styles, noting that "old stocks" have previously been "new stocks" during different market cycles, indicating a cyclical nature of investment preferences [9][10]. - Past instances of style switching occurred in 2009, 2014, and 2017, where traditional sectors outperformed technology stocks after periods of high growth in the latter [12][14]. Factors Influencing Style Switching - Key factors driving these transitions include macroeconomic conditions, industry cycles, capital market rotations, and changes in market participant structures [9][10]. - The current market is characterized by a peak in technology stock valuations, with the ChiNext index and the STAR 50 index showing significant year-to-date gains [20][21]. Current Market Signals - The article identifies three signals indicating a potential style switch: extreme valuation disparities, high concentration in technology sector investments, and the need for fundamental shifts or policy changes to support traditional stocks [20][26]. - Recent market trends show a rebound in traditional sectors like coal and steel, suggesting a possible shift in investor sentiment [29][30]. Investment Strategy Outlook - Investment firms are likely to adopt a balanced approach, maintaining a core focus on technology while exploring opportunities in traditional sectors with strong fundamentals [31][32]. - The market is expected to experience volatility in the short term, with potential for a style switch as investors reassess their positions [31][32].