Gelonghui January 1 | Guojun's strategy points out that the recent high level of market fluctuations, and the profit effects have narrowed. The main reasons behind the adjustments and fluctuations are: 1) the full downgrade since December was compounded by the 1-year LPR reduction, and the phased implementation of easing expectations; 2) rising expectations of overseas interest rate hikes, where global inflation and the spread of the epidemic intersect in difficult situations; 3) phased factors such as “counterfeiting” foreign investment have put great pressure on growth sectors such as new energy, which are crowded with transactions and high valuations. Disturbances aside, new momentum is still brewing, and the transmission chain of “policy base → valuation bottom → profit bottom” will be relayed. Looking ahead to the future market, we maintain the judgment that “agitation is not achieved overnight” and believe that the pace of this round of the New Year's Eve offensive is more moderate. As specific policies for steady growth in the first quarter of 2022 are gradually implemented, and loose expectations once again open up room for imagination, the New Year's Eve market will continue to be further interpreted.