Group 1 - The report indicates that in the week from December 15 to December 19, 2025, overseas markets experienced more declines than gains, with slight valuation changes. The Asia-Pacific region saw a broad decline, led by South Korea, while the Eurozone and the UK saw increases. Notably, the Nikkei 225 and the Korean Composite Index fell by 2.61% and 3.52%, respectively, but their P/E ratios expanded by 0.92x and 2.57x, indicating downward revisions in earnings expectations [3][8]. - In the same week, A-shares showed narrow fluctuations with slight valuation expansion. The large-cap value stocks outperformed growth stocks, with large-cap value rising by 1.52% while large-cap growth fell by 1.39%. The report highlights that the valuation distribution is asymmetric, with significant P/E contractions in small-cap growth and the National Index 2000 [3][23]. - The report notes that the downstream consumer sector has a favorable valuation attractiveness. The communication sector has the highest valuation percentiles, with rolling 1-year, 3-year, and 5-year averages of 96.80%, 98.93%, and 99.36%, respectively. Other consumer sectors like social services and beauty care also show relatively high valuation attractiveness [3][26]. Group 2 - The report highlights that the new energy sector experienced a broad decline, with photovoltaic stocks leading the drop at -3.91%. However, sectors such as insurance and military industry performed well, indicating a divergence in sector performance. The report also notes that some industries, like artificial intelligence and new energy, saw significant P/E expansions despite falling stock prices, reflecting downward revisions in profit expectations [3][23]. - The report provides a detailed valuation comparison of various indices, indicating that the core broad-based indices (CSI 300, Shanghai Composite, and Wind All A) are all above the 75th percentile level since 2010. In contrast, other indices are positioned between the median and the 75th percentile [3][28]. - The report concludes that large-cap growth stocks have superior valuation attractiveness, with their P/E, P/B, and P/S ratios showing higher percentile rankings compared to small-cap value stocks, which have lower valuation attractiveness across multiple time frames [3][26].