Core Insights - The report emphasizes that while short-term market sentiment may lead to a balanced style shift, the long-term perspective should focus on relative prosperity as the core factor driving market dynamics [1][3] - The A-share market's five styles have reached a state of equilibrium, prompting considerations for the next extreme direction, particularly in the technology sector's prosperity diffusion and identifying clues for valuation recovery in low-position stocks [1][3] Market Review - In the past week, the market experienced a style shift with funds moving from technology to consumption and cyclical sectors. From November 10 to 14, 2025, the A-share market showed an overall adjustment trend, with all three major indices declining, while the consumer sector strengthened and technology growth stocks faced adjustments [4][14] - The Consumer Price Index (CPI) turned positive year-on-year in October, coinciding with the upcoming consumption peak season in Q4, leading to a rebound in the consumer sector, particularly in textiles, retail, and beauty care industries [4][14] Style Dynamics - The report analyzes the current extreme positions, crowding levels, and style index trends in the A-share market. Since November, the trading theme has become unclear, with styles transitioning from extreme growth to a more balanced state between cyclical and consumption sectors. The crowding level in the growth style remains above 90%, indicating a high position [5][18] - The industry rotation has accelerated since November, with dividend and low-valuation styles gaining prominence. This shift is attributed to the cooling of the technology theme and a decline in market risk appetite, prompting funds to move from high-valuation technology stocks to low-valuation dividend stocks [6][23] Risk Premium Analysis - The report indicates that the current equity risk premium (ERP) for the CSI 300 index is near its 10-year average, suggesting that the market valuation is at a historical medium level. The ERP increased slightly from 5.19% on November 7 to 5.21% on November 14, reflecting a return to normal compensation for excess returns over risk-free assets [7][27] Leverage and Internal Differentiation - Since November, the financing balance as a percentage of the total A-share market value has decreased, with the TMT sector's financing balance share declining while the electric new energy sector's share has risen. This indicates a new direction for growth prosperity diffusion [8][31] Market Themes and Drivers - The report identifies recent market themes driven by prosperity diffusion, regional policy benefits, and style shifts. The top 20 concept sectors with significant gains since November include lithium batteries, chemicals, cross-strait integration, and Hainan Free Trade Zone-related themes. The lithium battery sector is entering a new prosperity cycle, positively impacting upstream materials and driving the phosphate chemical market [9][34]