Huatai Securities A-Share Strategy: Rebound to Continue, Beware Pre-Holiday Volatility

Huatai's framing matters less for its directional call than for what it concedes: the rebound rests on an external catalyst, fading Fed-driven liquidity uncertainty, while the domestic leg — growth, credit and earnings breadth — is described as weakening. That split leaves the market's durability dependent on offshore conditions rather than local fundamentals, a fragile basis for anything beyond a tactical move. The pre-holiday caution and the explicit refusal to call a trend suggest positioning, not conviction, is driving flows. Whether domestic data stabilises before the holiday window is the open question.