The A-share market is expected to continue its oscillating upward trend after the start of the year. Market sentiment is relatively optimistic, which is crucial—because the true source of the expectation gap lies in the balance between external demand and internal demand. Under external pressure, internal demand subsidies have become the trend, and with policy support, the probability of market upward movement is indeed higher.

From a medium-term strategic perspective, sectors that are not overly hot and have relatively dispersed holdings are worth paying attention to—especially when their attention begins to rise and catalytic factors increase. Fields like chemicals, engineering machinery, electrical equipment, and new energy still have room for long-term ROE growth, and many institutions have not fully followed suit. Additionally, new industry themes like commercial aerospace may still present opportunities for repeated plays.

It is also important to keep an eye on the RMB appreciation trend. It could trigger a logical shift in the entire policy framework. From this perspective, the sectors of securities firms and insurance can both attack and defend, making them relatively balanced allocation options.