Sector Positioning Still Outweighs Long/Short Calls

After the National Day holiday, the A-share market opened higher but gave back gains on 8 October, finding notable support near key levels on 9 October. However, we see no material change in the market's underlying logic, and neither aggressive longs nor shorts are suggested in the near term. We continue to watch whether turnover can return to RMB2tn, the earnings quality of AI hardware names, the pace of Fed rate hikes, and the outcome of China-EU trade negotiations. We suggest staying neutral and focusing on sector selection. Meanwhile, tech names should be held; high-dividend names could be added modestly;