CITIC Securities has identified increased market volatility since October, attributing it to changes in incremental capital structure and the influence of AI narratives. The firm's research report notes that stable absolute return funds have diminished the effectiveness of traditional aggressive strategies, with timing success rates remaining low. Key factors affecting the market include the stability of the overseas business environment and developments in AI, particularly in relation to U.S.-China relations and AI infrastructure. The report highlights that sectors such as technology, media, telecommunications (TMT), metals, chemicals, and new energy, which constitute over 60% of institutional holdings, are significantly influenced by AI narratives. CITIC Securities advises that while portfolio adjustments should not shy away from AI narratives, they should prioritize assets with upward trends in return on equity (ROE).