Core Viewpoint - The article discusses the current state of the market, highlighting that the most pessimistic expectations regarding tariffs have likely been priced in, and there are signs of potential recovery in the stock market following recent tariff announcements [4][10][12]. Group 1: Market Overview - As of April 2025, the Shanghai Composite Index closed at 3,279.03 points, down 1.7% from March, while the CSI 300 Index fell 3% to 3,770.57 points [7][9]. - The average daily trading volume in April was 5,153 billion yuan for the Shanghai market, a decrease of 13.5% compared to March [9]. - The highest and lowest points for the Shanghai Composite Index in April were 3,361.13 and 3,040.69, respectively, indicating a volatile month [7][9]. Group 2: Economic Data and Policy Expectations - The overall economy remains in a dormant state, with the total revenue growth for the A-share market continuing to show negative growth, although the decline is narrowing [5][15]. - In March 2025, broad fiscal revenue decreased by 1.7% year-on-year, while fiscal expenditure increased by 10.1%, indicating a potential for policy support to mitigate external demand risks [17]. Group 3: Market Sentiment and Risk Premium - The equity risk premium for the CSI 300 Index reached 7.03 at the end of April, exceeding the historical average by more than one standard deviation, suggesting a period of panic selling followed by gradual recovery [6][19]. - The number of stocks with a price increase of over 20% in April was 151, a decrease of 30% from the previous month, indicating a contraction in the market's profit-making effect, although it has not yet reached historical lows [20]. Group 4: Future Market Predictions - The Shanghai Composite Index is expected to maintain a volatile trading pattern, oscillating between established support and resistance levels [21]. - The CSI 300 Index has shown signs of recovery after a sharp decline, but faces significant resistance at the 60-day moving average [24].

Investment Rating - The industry investment rating is "Strong Buy" with an expected relative return of over 20% within six months [24]. Core Viewpoints - The market is currently in an upward trend, with the core observation being the market's profitability effect, which is currently at 1.40% and remains positive, indicating the potential for continued upward movement [2][3][7]. - The report recommends maintaining a stable position until the upcoming financial and inflation data is released, while also suggesting a focus on technology sectors, particularly AI+Healthcare, domestic computing power, and robotics [2][3][7]. Summary by Sections Market Overview - The Wind All A Index has shown a weekly increase of 2.43%, with small-cap stocks (CSI 2000) rising by 3.99%, mid-cap stocks (CSI 500) by 2.63%, and large-cap stocks (CSI 300) by 1.39% [8]. - The distance between the short-term (20-day) and long-term (120-day) moving averages has increased from 5.46% to 5.59%, indicating a continued upward trend [2][9]. Valuation Metrics - The overall PE of the Wind All A Index is at the 60th percentile, indicating a medium level, while the PB is at the 20th percentile, suggesting a lower valuation level [10]. - The report advises a 90% allocation in absolute return products based on the current market conditions [10]. Sector Allocation - The industry allocation model continues to recommend sectors that are in a turnaround phase, specifically the Hong Kong Stock Connect internet and battery-related industries [3][7]. - The TWO BETA model continues to favor technology sectors, with a focus on AI+Healthcare, domestic computing power, and robotics [3][7].