Core Insights - The A-share market opened high and maintained a high-level fluctuation, with a slight increase in trading volume. The communication sector led the gains, while technology sectors such as batteries, robotics, and circuit boards experienced a general rebound [6][10]. Market Performance - The Shanghai Composite Index rose by 0.63%, the Shenzhen Component Index increased by 0.98%, the ChiNext Index surged by 1.98%, the SSE 50 Index gained 0.24%, the CSI 300 Index rose by 0.53%, the STAR 50 Index increased by 0.35%, and the CSI 1000 Index rose by 0.75%. The total market turnover was 1.75 trillion yuan, with 4,064 stocks rising [10][10]. Sector Performance - On October 20, 2025, within the primary sectors of A-shares, the telecommunications sector led with a gain of 3.15%, followed by coal (+2.96%), power and new energy equipment (+1.53%), and transportation (+1.40%). Conversely, sectors such as metal materials and mining (-0.99%), agricultural products (-0.87%), and banking (-0.13%) saw declines. Notably, concepts like cultivated diamonds (+13.43%), superhard materials (+9.59%), optical modules (+5.07%), and lithium battery electrolytes (+4.75%) led the gains, while gold jewelry, rare earths, nickel ore, and feed concepts declined [10][10]. Market Drivers - The market's upward movement was attributed to a temporary alleviation of overseas uncertainties, with a rebound in hard technology sectors. Notable gains were seen in computing hardware stocks such as optical modules and optical communications. A leading humanoid robot company secured a significant order exceeding 100 million yuan, boosting the robotics sector. Additionally, coal entered its seasonal peak, attracting capital inflows into defensive sectors like coal and natural gas. The emergence of the world's largest cultivated diamond in Henan also spurred a surge in related stocks [10][10]. Future Outlook - The report maintains a bullish outlook on the Chinese stock market, particularly for October, anticipating favorable policies following the 20th Central Committee's Fourth Plenary Session. The report supports the views outlined in previous strategies, emphasizing that the key macroeconomic theme for 2025 is "the liquidity of monetary policy." It expects a gradual recovery in the fundamentals, predicting a bullish market trend, drawing parallels with bull markets in 1999, 2014, and 2019 [10][10]. Investment Strategy - The report suggests focusing on the technology sector and value-oriented sectors that are gradually recovering. Specific areas of interest include: 1. Technology growth sectors, particularly "double innovation" and the Hang Seng Technology Index, with attention to lithium batteries, military industry, and Hong Kong internet stocks. 2. Value sectors, particularly those with consecutive increases in revenue growth and gross margins over the past two quarters, including fiberglass, cement, paper, fine chemicals, oil services, and medical services. 3. In the medium to long term, attention should be given to the non-bank sector within a slow bull market context [10][10].