In recent times, the question has arisen—has the bull market truly returned? This query emerged following a significant uptick in Hong Kong stocks, which sparked optimism for a surge in the A-share market early this morningHowever, the excitement quickly met reality as the index touched 3499 before a swift retreat, leaving many investors caught off-guard as trading volume rose to a staggering 20 trillion, yet the day's momentum was markedly inconsistent.

What this illustrates is the fragile nature of market confidence, still heavily reliant on a restoration of confidence through policy measuresInsights from recent meetings indicate that economic strategies are on the brink of historic breakthroughs, signaling a pivotal shift in both fiscal and monetary policies toward fostering stability.

If these strategies can be expedited, they could catalyze a wave of upward momentum in the market direction

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Just as the economy evolves, so too does the bull market, moving away from the previous patterns of rapid rises followed by prolonged declinesThis evolution begs the question: how can investors strategically position themselves in today's market landscape?

The morning trading session revealed an interesting pattern—though stocks opened higher, they quickly fell backYesterday's favorable policy indications ignited a positive sentiment across the market, particularly benefitting sectors like real estate and consumer goodsThe major indices showed collective gains, with the Shanghai Composite up by 0.59% and the ChiNext closing with a 0.69% increase.

Real estate and brokerage stocks experienced a concentrated surge in pre-market bidding, yet the post-open trends reversed this momentum

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The recent guidelines emphasized the need for proactive macroeconomic policies aimed at boosting domestic demand and fostering a seamless integration of technological and industrial innovations while stabilizing both the real estate and stock markets.

There's a market expectation for the introduction of more targeted stimulus measures, but clarity on specifics will likely emerge following further discussions later in the weekThe recent meeting's focus on enhancing domestic consumption appeared to have stimulated strong interest in consumer-related sectors today, underscoring the urgency for robust fiscal intervention.

The call to significantly boost consumption levels and improve investment efficiency has led to an all-encompassing push for expanding domestic demand

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The Ministry of Commerce has advocated for increased development of digital, green, and health-related consumer initiatives, aiming to create favorable conditions for consumption.

Anticipation has grown within the market regarding next year's expansion initiatives focusing on consumptionConsequently, sectors such as retail, dining, tourism, cosmetics, dairy, and liquor witnessed substantial collective gainsNoteworthy performers included companies like Yiming Food with an impressive successive rise, and stocks such as Xiyang Lou, Xi’an Food, and Yonghui Supermarket hit the upper trading limits.

Technology stocks also showed resilience, bolstered by two major updates from the previous dayThe strategic responses emerging from China have matured significantly over the past four years, with technological advancements offering robust backing for the market

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Recent examples include the Huawei Mate 70 series achieving complete localization in both chips and operating systems.

Furthermore, regulatory actions have also made headlines, as the State Administration for Market Regulation launched an investigation into NVIDIA concerning bundled sales practicesFollowing this move, NVIDIA saw a dip in the U.Sstock market, reinforcing the significance of these measures in shaping market sentiment.

Earlier this month, the Ministry of Commerce intensified export controls, leading significant industry associations within semiconductor, automotive, internet, and communication sectors to collectively call for increased utilization of locally produced chips from both domestic and foreign enterprises manufacturing in China

Additionally, a proposal to grant a 20% price evaluation preference for domestic products in government procurement showcases a strategic shift towards bolstering local industry.

Experts project that by 2025, a deepening of domestically controlled advancements will persist, with CPU developments such as Kunpeng, Haiguang, and Feiteng working to match international standardsFurthermore, the HarmonyOS achieving native integration in Mate 70's launch signifies strides in AI chip performance improvements, as various manufacturers are rallying to enhance their outputs amidst a continually evolving trade landscape.

In recognizing the critical nature of self-sufficiency in technology, policies now envision a favorable environment for capital flowing into the tech domain, with initiatives to accelerate the establishment of aggregate acquisition funds.

Measures like the proposal to effectively leverage a 10 billion yuan integrated circuit design fund alongside establishing a 10 billion yuan biomedical industry acquisition fund enhance the government's capacity to assist in acquisitions through diverse financial instruments.

These developments pose a significant directional influence on China's domestic chip industry, augmenting the market sentiment towards local computing power and semiconductor sectors

Currently, the chip and software segment has demonstrated notable performance today.

Beyond domestic alternatives, sectors related to AI, humanoid robotics, and low-altitude economies are thriving, further energizing the technology market.

The wave initiated by OpenAI's recent intense promotional streak has catalyzed substantial interest in A-share AI investmentsSimultaneously, Google's introduction of its groundbreaking quantum chip, Willow, enhances computational efficiency at unprecedented rates, representing a pivotal advancement in technologyAdditionally, Tesla’s latest video showcasing its Optimus robot navigating complex terrains has reignited excitement around this sector.

It is essential to recognize that a fundamental shift in decision-makers' approaches towards reversing economic trends and supporting capital markets has become a solid foundation for the anticipated recovery in the stock market.

As we navigate dual transitions within both the economy and the stock market, the prospect of a sustained upward trajectory during the year's end looms large

Given the lessons learned from previous price movements, it is crucial to devise suitable strategies moving forward.

As we face this renewed investment landscape and potential economic bounce, employing an investment strategy that focuses on high elasticity stocks with solid growth potential should be an optimal course of action.

Such stocks, characterized by flexible volatility and growth metrics, typically thrive in times of ample liquidity, as evidenced by historical cyclesThese qualities make them appealing targets in a bull market, attracting capital that magnifies their price movements in favorable conditions.

Holding onto solid fundamentals provides a necessary cushion, reinforcing a safety net against the inherent risks of stock investments

Well-founded stocks afford some level of assurance amidst market fluctuations, where neglecting risk factors may culminate in adverse outcomes even during bullish periods.

In this light, examining the Sci-tech 100 Index becomes vitalThe underlying structure of its constituent stocks reveals strength across various sectors, including semiconductors and burgeoning industries such as new energy and biomedicine.

Notably, the Sci-tech 100 Index comprises a balanced distribution of industries, with semiconductors accounting for 24.8%, chemical manufacturing at 10.1%, and various innovative sectors stressing technology growth potential.

The prevalence of specialized "hidden champions" within these industries amplifies the index’s growth nature, supporting its momentum compared to major indices, especially in the wake of escalating market interest since September 2022.

Moreover, the Sci-tech 100 is home to numerous financially sound firms, boasting impressive performance metrics

For instance, revenues for the index constituents grew by 7.21% year-over-year in the first three quarters of 2024, with net profits climbing by 11.40%, placing them ahead of their peers in broader indices.

The mid-level research intensity among these firms stands at 16.1%, significantly surpassing the negligible average of 12.3% recorded across the Sci-tech board, suggesting robust commitments towards R&D and innovation within high-tech and strategic sectors.

Exploring the broader landscape, technological innovation appears to be the primary engine driving high-quality economic advancement in China, affirming its position as a crucial theme in future investment endeavors.

Historically, many have marveled at or felt envious of the sustained prosperity reaped by American technology companies, generating ongoing returns for their investors

As China's economy transitions and its capital markets mature, local investors are similarly poised to reap substantial returns akin to their international counterparts.

To buttress the idea, the bulk of companies within the Sci-tech 100 Index are relatively niche, with valuations hovering around 10 billion yuan, positioning them within lucrative growth regions—yielding promising outlooks for revenue and profit expansion.

Such characteristics underline the distinct advantages offered by the Sci-tech 100 Index, particularly in contrast to traditional value stocks and speculative smaller caps lacking substantive performance backing.

Looking towards the future, as voices indicating divergences regarding market prospects arise, the high-ranking meetings have sent clear signals reinforcing economic stimulus

Undoubtedly, achieving economic success has become a collective consensus.

In light of previous years' adjustments, both the economic fundamentals and capital markets are regaining attractiveness, drawing increased attention from investors.

Although there are still doubts surrounding the responsiveness of economic data, the continued stimulative policies imply that market movements will shift from being liquidity or policy-driven to fundamentally grounded.

The adage 'buy low, sell high' remains timeless wisdom for investors, particularly in anticipating that improved economic data may already be reflected in elevated stock prices by then.

While volatility persists in the stock market, maintaining attention on elasticity, growth potential, and underlying fundamentals allows for a balanced approach with both offensive and defensive elements.

In this context, the Sci-tech 100 Index ETF emerges as a well-rounded investment platform