1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The market will remain volatile under the backdrop of declining liquidity. The three - dimensional timing framework continues to predict a volatile decline. The Shanghai - Shenzhen 300 index is in a slow - rising trend and oscillating within a channel, with strong upper resistance and lower support [1][7]. - The power grid equipment theme index has seen significant inflows. In the past week, there were large inflows into the power grid equipment theme, communication equipment theme, etc., while the innovation energy, state - owned enterprise digital economy, etc. had the most outflows [1][25]. - Industries recommended based on capital resonance are agriculture, forestry, animal husbandry and fishery, construction, electric power and public utilities, and petroleum and petrochemicals [2][31]. - The high - volatility and high - liquidity style is dominant this week, with the liquidity factor achieving positive returns. Among Alpha factors, reversal and cash - flow factors perform well. In large - cap stocks, factors such as profit growth and analyst expectations are dominant, while in small - cap stocks, R & D intensity and growth factors perform better [2][39]. 3. Summary According to the Directory 3.1 Quantitative Views 3.1.1 Timing Viewpoint Liquidity is on a downward trend, divergence is on an upward trend, and the prosperity has rebounded again (financial sector up, industrial sector down). The three - dimensional timing framework maintains a judgment of volatile decline. The Shanghai - Shenzhen 300 index is in a slow - rising trend and oscillating within a channel, with no sign of breaking through the range [1][7]. 3.1.2 Index Monitoring By calculating the overall subscription/redemption shares of ETF products for each index, it was found that the power grid equipment theme had the largest inflow ratio in the past week, month, and three - month periods. The innovation energy, state - owned enterprise digital economy, etc. had the most outflows in the past week. The hot - trend strategy for ETFs includes industries such as photovoltaic semiconductors, environmental protection and new energy, energy and chemicals, and power grid equipment [25]. 3.1.3 Capital Flow Resonance The margin trading funds had the largest net inflow of 6249 million yuan in the power equipment and new energy sector last week, and the large - order funds had the largest net inflow of 1323 million yuan in the banking sector. This week, the recommended industries are agriculture, forestry, animal husbandry and fishery, construction, electric power and public utilities, and petroleum and petrochemicals [2][31]. 3.2 Factor Tracking 3.2.1 Style Factors The market this week shows the characteristics of "momentum continuation, high volatility, and high liquidity". The volatility factor and the liquidity factor both achieved positive returns, and the momentum factor also had a positive return [39]. 3.2.2 Alpha Factors - **By Time**: Recently, the reversal and cash - flow factors have performed well. The short - term reversal factor had the best performance in the past month, with a long - position excess return of 1.16% [43]. - **By Index**: In large - cap indexes such as the Shanghai - Shenzhen 300, profit - growth and analyst - expectation factors are dominant. In small - cap indexes such as the CSI 1000, R & D intensity and growth factors perform better. As the market capitalization moves from the CSI 800 to the CSI 1000, the excess returns of most factors show an upward trend [45].