CITIC SEC: Independent Technology, European Capital Expenditure, purely domestic essential Consumer, stable dividends, and some themed materials will outperform.

CITIC SEC's Research Reports point out that during the deadlock phase of the trade war, unexpected stimulus and compromise-based trade agreements are unlikely to occur; what matters during the deadlock is the economic resilience of both countries. China has more policy options, greater space, and longer energy consumption. For the USA, the large-scale maturity of national bonds before July may be the first tipping point for Trump's tariff policy; the A-shares are also a key element in boosting confidence in China's trade war, and there should be full confidence in the country's determination to maintain stability in the Capital Markets. The Hong Kong market may be a relatively weak link in this phase, but it's also important to recognize that mainland funds still significantly underweight the Hong Kong market overall. In terms of allocation, from the perspective of avoiding uncertainty, Independent Technology, sectors benefiting from the expansion of European Capital Expenditure, purely domestic essential Consumer, stable dividends, and themed materials that do not rely on short-term performance will outperform.