Institution: Waller's Nomination as Fed Chair Represents "U.S. Version of Shifting from Virtual to Real" Policy Intent

Odaily News According to a CITIC Securities research report, it is judged that this round of concentrated ETF redemptions has basically ended, with heavyweight stocks entering a recovery window; a style shift within the larger cycle dimension is underway, moving from small-cap to large-cap, and from thematic to quality; Waller's nomination as Fed Chair represents the policy intent of the "U.S. version of shifting from virtual to real." Regardless of whether this concept can be successfully implemented, it will have a significant impact on the style of global risk assets. The underlying commonality of cyclical sectors is the large room for profit margin recovery, underpinned by China's policy shift from expanding scale to gradually improving quality and efficiency. The underlying logic for allocation should still revolve around the revaluation of global pricing power in industries with competitive advantages, but caution should begin to be exercised towards the precious metals sector, whose speculative nature is becoming increasingly apparent; the agitated recovery in consumption and the real estate chain should logically occur in the spring, which is not in opposition to manufacturing and technology. (Jin10)