#2024.12.24 Morning Strategy# Yesterday was another brutal day, with nearly 200 stocks hitting the daily limit-down and nearly 2,000 stocks falling more than 7%.

The main reason for the panic is the new delisting regulations, which are part of the previously mentioned 'New Nine Articles' set to officially take effect in January.

However, yesterday's sell-off was clearly overdone. From a sentiment perspective, there is an expectation for a rebound today, especially given the positive news last night.

1. Rumor of 36 Companies Facing Delisting; CSRC Responds

Q: Today, rumors circulated online that 36 companies will be delisted, 66 companies will be placed under delisting risk warnings (*ST), and several others will face other risk warnings (ST), misleading the market.

The CSRC clarified that the 66 companies mentioned in media reports as potentially facing *ST after their 2024 annual reports are disclosed does not mean they will all be delisted. These companies still have a year to improve operations, enhance quality, and mitigate delisting risks. Additionally, ST refers to other risk warnings, which are different from *ST and mainly serve to alert investors to risks related to corporate governance and operations. Companies under ST will not be directly delisted and can apply to remove the ST designation after rectifying issues.

Two key points here: First, this response was issued after 11 PM last night, with the CSRC working late to address the issue, indicating dissatisfaction with yesterday's market plunge and a desire to stabilize the market. Second, who fabricated the list of 36 and 66 companies? This must be thoroughly investigated!

Therefore, thematic stocks are expected to rebound today!

2. U.S. Stock Market Rises; Apple Hits New High

The three major U.S. stock indices closed higher, with the Nasdaq up 0.98%, the S&P 500 up 0.73%, and the Dow Jones up 0.16%. Large-cap tech stocks generally rose, with Nvidia and Intel up over 3%, and quantum computing stock Rigetti Computing surging more than 40%.

Although the U.S. market had declined for several days, the Nasdaq has nearly recovered its losses over the past two days. In short, the U.S. market always manages to bounce back after declines—this is the hallmark of a slow bull market. In contrast, when A-shares fall, they tend to stay down. Last night's gains in the U.S. were led by tech stocks, which could signal a rebound for A-share tech themes today.

Technically, yesterday's heavy sell-off suggests the market may retest the 60-day moving average. However, individual stock movements are now less tied to the broader market. The general advice remains to exercise caution. The year-end rally is likely to begin in the last two days of the month, but we are still in a period of institutional selling pressure, so timing is crucial.