China growth stocks outperformed cyclical in 2013，given moderate expansion in economy. We expect a mixed outlook for macro in 2014 due to shortterm pains in transition alongside long-term benefits of reform. Therefore，we are cautious on A-share market in 1H14. However，we may be slightly optimistic on China’s equities in the second half if the correction in 1H14 is deep enough. Four key themes will play central roles in our sector allocation in 2014. （1） Stability of Earning，such as consumer staples and medical services；（2） Positioning in the future growth cycle，pointing to environment protection，alternative energy，industrial automation and SOE reform；（3） Lower sensitivity to interest rate hikes，such as defense industry，information security and security & surveillance；（4） Certain sectors with lower overcapacity pressure，mostly in midstream industry.