Core Viewpoint - The current A-share market is in the high position of "Bull Market 1.0," with insufficient long-term cost-effectiveness in the technology sector and logical breaks in the cyclical market. Conditions for the initiation of Bull Market 2.0 are not yet complete [1] Group 1: Market Conditions - The A-share AI industry chain is in a state of "long-term low cost-effectiveness" similar to previous years in various sectors, indicating a high-level consolidation phase followed by an adjustment phase [2] - The high-level consolidation phase typically lasts at a quarterly level, and adjustments are triggered by mid-level disturbances in the industry trend, but this does not signify the end of the industry trend [2] Group 2: Cyclical Market Analysis - The recent cyclical market is characterized by short-term price increases and expectations of PPI turning positive by mid-2026, but there is significant divergence regarding the pace of PPI improvement [3] - The cyclical market is approaching a differentiation phase as cost-effectiveness decreases, and the sustainability of price increases becomes more critical [3] Group 3: Future Challenges - By spring 2026, the A-share market may face three major challenges: the technology sector's long-term low cost-effectiveness, a critical verification period for demand, and immature conditions for the transition to Bull Market 2.0 [4][5] - The market is expected to experience a two-stage bull market, with the first stage being the structural bull market in 2025 and a potential peak in spring 2026 [4][6] Group 4: Investment Opportunities - In the current high-level consolidation phase, the focus should be on Alpha opportunities in both cyclical and technology sectors, with an emphasis on sectors with favorable supply-demand dynamics and high dividend yields [7] - Short-term opportunities in technology growth are expected to arise from small rebounds, particularly in sectors with new catalysts or significant industry space, such as energy storage and innovative pharmaceuticals [7]