Institutions: Warsh's nomination as Fed Chair represents the US's policy intention to shift from virtual to real economy.

A research report from CITIC Securities suggests that the current wave of concentrated ETF redemptions has largely ended, and heavyweight stocks are entering a recovery window. A style shift is underway across the larger timeframe, moving from small-cap to large-cap stocks, and from thematic to quality stocks. Warsh's nomination as Federal Reserve Chairman represents the US's policy intention to shift from speculative to real-economy investment; regardless of whether this strategy is successfully implemented, it will have a significant impact on the style of global risk assets. The underlying commonality of cyclical sectors is significant room for profit margin recovery, reflecting China's policy shift from expanding scale to improving quality and efficiency. The fundamental allocation strategy should still revolve around the revaluation of global pricing power in industries with competitive advantages, but caution should be exercised regarding the increasingly speculative precious metals sector. The recovery in the consumption and real estate chains should occur in the spring, which is not contradictory to manufacturing and technology. (Jinshi)