China Merchants Securities released a research report stating that after the market rebounded, the core of the allocation was the molecular boom premium under high interest rates. In the short term, it was bottomed out with the technology leaders with the strongest profits and clean chips plus dividends, waiting for the technological breadth to be repaired after interest rates on US bonds were changed. This week, the market experienced a moderate rebound underpinned by microliquidity, with net inflows of broad-based ETF volumes and pulsed net purchases on the afternoon of October 9, pointing to market stabilization. On the external side, the US-Iran negotiation window has reopened, trade frictions between China and Europe have substantially eased, and geopolitical risks have declined in the short term; however, interest rates on 10Y US bonds are still high at 5.2% to 5.3%. The Fed's September records are hawkish and interest rate hikes were suspended in October, making it more difficult to determine interest rates on term premiums. Industrially, the AI boom has not deteriorated systematically, and capital is further concentrated on the leaders with the strongest profit and cash flow; combined with the three-quarter reporting window, allocation standards should shift from long-term space to be implemented in the current economy. In the short term, priority should still be given to areas where the three-quarter report performance is expected to increase or improve, such as the AI industry chain, resource products, middle and high-end manufacturing, pharmaceuticals, securities, textile manufacturing, etc.

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