Market Overview - Global markets showed divergence this week with a cooling risk appetite; the Dow Jones increased by 1.05% while the Nasdaq fell by 1.62%, indicating a shift of funds away from overvalued growth stocks [1] - European stocks remained weak, while Asian markets, particularly in China, Japan, and South Korea, saw gains; Hong Kong stocks slightly declined by 0.42% [1] - In the commodity sector, oil prices decreased, while gold and copper prices strengthened [1] A-Share Market Dynamics - The A-share market exhibited structural fluctuations, with the ChiNext Index rising by 2.74% and the Sci-Tech 50 Index increasing by 1.72%, showcasing resilience in the technology growth sector; however, the CSI 300 and Shanghai Composite Index experienced slight declines [1] - Market turnover shrank, leading to a focus on small and mid-cap growth sectors amid a stock game [1] Sector Performance - Industry performance showed increasing divergence, with sectors such as telecommunications, military, and electronics leading gains driven by policy support; the telecommunications sector saw a rise of 6.27% [1] - Conversely, cyclical sectors like coal, oil and petrochemicals, and real estate experienced notable pullbacks [1] Policy Environment - The Central Economic Work Conference set the tone for "seeking progress while maintaining stability, improving quality and efficiency," emphasizing support for technological innovation and new productive forces, and mentioned the flexible use of interest rate cuts [1] - The expectation of interest rate cuts by the Federal Reserve also reinforced global liquidity easing [1] Outlook - Looking ahead to next week, the structural market trend in A-shares is expected to continue, supported by internal policy expectations and external liquidity conditions; the technology growth theme is likely to remain dominant, with continued attention on telecommunications, electronics, semiconductors, and military sectors [1] - Hong Kong stocks may benefit from improved liquidity and valuation advantages, with a potential recovery in technology and financial sectors [1] Investment Strategy - It is recommended to focus on sectors with clear industrial trends and strong policy support, such as AI computing power, domestic substitution, and high-end manufacturing, while avoiding chasing high valuations and emphasizing strategic positioning during pullbacks [1]