Market Overview - The A-share market saw all three major indices rise, with the Shanghai Composite Index and Shenzhen Component Index reaching new highs for the year, indicating a bullish trend [1][2] - The market's overall performance is still considered modest compared to previous bull markets, suggesting potential for further gains [1][4] Lithium Sector - The lithium sector experienced a significant surge due to the expiration of mining licenses for projects under CATL, leading to a collective rally in lithium stocks [2] - The potential suspension of multiple lithium mines in Jiangxi could impact monthly supply by approximately 7,000 to 8,000 tons of lithium carbonate equivalent, driving prices higher [2] - Futures contracts for lithium carbonate saw a broad increase, primarily driven by supply concerns linked to the CATL mining project [2] Investment Sentiment - Current market conditions are compared to 2013, but with more supportive policies and liquidity, leading to expectations of better performance [3] - Increased household savings and a low public fund equity position indicate a growing willingness to invest in the stock market [3][4] - The margin trading balance in the A-share market reached a 10-year high, reflecting a rising risk appetite among individual investors [4] Sector Recommendations - Short-term recommendations include focusing on sectors with strong performance trends and improving earnings, such as non-bank financials, chemical pharmaceuticals, and electric equipment [6] - Mid-term focus should shift to cyclical and consumer sectors as economic fundamentals improve, including basic chemicals, steel, and consumer goods [6]