Guangfa Securities released a strategy research report stating that with the implementation of a series of policies this week including monetary, real estate, and capital markets, relying on the leading stocks to set the stage, the market sentiment has been initially stabilized. Next week is the last window period for listed companies to disclose their annual report expectations conditionally, similar to January 2019, as the final shoe drops with some annual report forecasts revealing negative surprises, the TMT and small and medium stocks with significant declines in recent months may also have good opportunities for rebound. Based on this logic, it is recommended to look for sectors that have had significant declines in the past (in the past 2-3 years or the recent quarter) and may have further changes in the future, such as hydrogen energy, AI, and satellites. The main points of Guangfa Securities are as follows: Under the stimulus of growth stabilization policies, there are signs of marginal warming in the market this week. However, this round is the only time since 2008 that funds have consistently operated at high positions in a weak market, which may indicate that it will be difficult to attract incremental funds from public funds. Historically, funds have reduced positions in response to each round of weak market conditions (2008/2010-2012/2015/2018), providing incremental funds for bottoming out rebounds and smoother transitions between bear and bull markets. However, this round is different, as funds have maintained high positions since 2022-2023, with the latest quarterly reports showing that funds are still maintaining high positions despite declines, making incremental funds limited. However, as the capital structure of the A-share market becomes more diversified, even with continuous high positions of public funds, there may still be opportunities for medium-level rebounds in the A-share market. Looking at the rebounds in April 2022 and October 2022, the former saw a 2-month rebound of 24.7% in the CSI All-A Index, while the latter saw a 3.5-month rebound of 15.1%. In both of these medium-level rebound periods, public funds maintained high equity positions, and the market rebounds were still considerable. The triggers for the rebounds all came from changes in fundamental expectations. Additionally, the quarterly reports of funds have many structural highlights. 1. After reducing positions for six consecutive quarters, new energy (excluding industry funds) is now back to underweight. Looking at historical typical industry trends, once the growth period is surpassed, positions typically face downward pressure, and over-positioning needs to return to neutral at least to see a bottom. From this perspective, the allocation of wind power and photovoltaics has returned to or is approaching neutrality, with internal structure differentiation in new energy vehicles. 2. The "barbell strategy" (especially dividends) is still not crowded; 3. Funds are increasing positions around three certainties related to the supply side: supply clearance, supply going overseas, and supply innovation. One month has already passed in 2024, and high dividend stocks and central SOEs continue to be strong performers at the beginning of the year, suggesting that the market style may not align with the direction of fund positions. However, looking back at history, it is rare for January to clearly indicate the main theme for the entire year (only in 2015 and 2017). The bank believes that the major industrial theme for this year is probably not yet clear. Based on the experience of the past 12 years, it is rare for January to clearly indicate the main theme for the entire year unless a very clear industrial trend has already been seen in the previous year (such as mobile internet & internet+ in 2013-2014, and supply-side reform in 2016). In the current context where the direction of total demand is unclear, it is still difficult to find a clear industrial theme, so it is likely that the main theme for this year has not yet emerged, and it is recommended to wait for the market to stabilize and risk appetite to recover before positioning. Risk warning: Geopolitical conflicts, liquidity easing not meeting expectations, growth falling short of expectations, etc.