[CITIC Construction Investment: The key to subsequent bottom confirmation is whether multiple signals can gradually appear Stay patient and wait for long opportunities] November 1st, CITIC Securities believes that the recent market continues to be in the second round of deleveraging process since the end of September. This week, A-shares have turned from the previous unilateral decline to high volatility. The current market pressure mainly comes from three aspects: First, The geopolitical situation in the Middle East has repeatedly led to high oil prices, combined with local debt risks in economies such as France and expectations of subsequent interest rate hikes by the Federal Reserve, resulting in tight overseas liquidity; second, overseas third quarter reports were mixed; third, domestic liquidity pressure has not yet been fully digested, and concerns about reducing positions of absolute return funds are still there. The positive signal is that since October, market stabilizing funds have gradually entered the market. The key to subsequent confirmation of the bottom lies in the increment of market stabilizing funds, as well as whether signals such as stabilization of financing funds, continuation of ETF acceptance, and the fact that the negative sectors in the early stage will no longer hit new lows can gradually emerge. Historical experience shows that the formation of mid-term bottoms is often difficult, so stay patient and wait for long opportunities. In terms of allocation, it is recommended to give priority to defense, wait for bargain-hunting opportunities, and use dividend assets such as banks, coal, public utilities, and Hong Kong stock dividends as core positions; the offensive direction should focus on the rotation of growth themes such as physical AI and commercial aerospace, and follow the rhythm of market stabilizing funds, focusing on tracking the direction of significant increase in ETF volume.