Core Viewpoints - The market may enter a phase of wide fluctuations, with major indices showing mixed performance in September. The current market still holds certain value based on equity risk premium, supported by a continuous "profit-making effect" that attracts short-term capital inflows. Individual investors are still in the process of entering the market, and there may be an increase in participation through funds and wealth management products in the future, although the inflow rate of medium to long-term capital may slow down, it remains a stabilizer for the market [4][5]. - Corporate earnings are still stabilizing, with the economic recovery in the third quarter progressing relatively slowly. However, some sectors have shown improvement, such as the cumulative year-on-year growth rate of industrial enterprise profits from January to August rebounding and a narrowing decline in the year-on-year PPI in August. Domestic exports are expected to remain resilient, and the sustainability of domestic demand improvement may exceed expectations. Overall, with policy support, A-share earnings are expected to see slight recovery in the fourth quarter, adding new momentum to the market [5][6]. - In a liquidity-driven market, TMT (Technology, Media, and Telecommunications) is likely to become a main line, with many catalysts present in this sector. If the market shifts to a fundamental-driven phase, advanced manufacturing should be a key focus. Additionally, if market fluctuations occur, attention should be paid to sectors that are lagging behind, such as high-dividend and consumer sectors [6][7]. Market Style and Industry Recommendations - The market is expected to rotate between "weak reality, strong sentiment" and "strong reality, strong sentiment," corresponding to the rotation of growth and balanced styles. In October, industry allocation should focus on electronics, power equipment, communications, media, and machinery equipment [7]. - Although the Hong Kong stock market has performed well this year, it still holds certain value. In addition to the inflow of southbound funds, a potential interest rate cut by the Federal Reserve may further enhance the external liquidity environment, leading to good performance of the index. Focus should be on Hong Kong stocks in the internet, automotive, and service consumption sectors [8].

Macro Analysis - In May, domestic prices continued to operate at low levels due to falling energy prices and weak investment demand, but prices for travel services, some consumer manufacturing, and high-tech products increased, indicating the acceleration of new momentum [1] - The CPI year-on-year growth rate is expected to remain low, with the recent increase in pig supply due to regulatory impacts leading to weaker pork prices, potentially creating new downward pressure [1] - PPI is anticipated to see a narrowing of the month-on-month decline as oil prices stabilize and trade conditions improve, with attention on the support from new policy financial tools for investment [1] Market Strategy - Most major asset classes rose this week, with WTI crude oil prices leading in gains and the US dollar index showing a notable decline [2] - The A-share broad indices all rose, with the ChiNext index showing the highest increase, while the Shanghai Composite Index had the lowest rise [2] - Most industries experienced gains, with telecommunications leading in growth and home appliances showing a decline [2] Company Research - The basic situation of property management remains stable, with Sunac Services (1516.HK) poised for independent development [3] - Sunac China’s recent offshore debt-to-equity swap plan received 82% support from bondholders, and the total sales amount for May was 4.9 billion yuan, a year-on-year increase of 128%, indicating strong performance [3] - The impact of related parties on Sunac Services is expected to be alleviated, with sufficient provisions for trade receivables impairment, allowing the company to potentially break free from real estate influences starting in 2025 and enter a stable growth trajectory [3] - Forecasted net profit for the parent company from 2025 to 2027 is 420 million, 520 million, and 620 million yuan, corresponding to PE ratios of 11, 9, and 8 times, maintaining an "Accumulate" rating [3]