China's three major stock indices opened lower collectively, with the Shanghai Composite Index down 0.43% and the ChiNext Index falling 1.01%.
In terms of sector performance, semiconductors, memory chips, communication equipment, CPO, and lab-grown diamonds were among the biggest decliners.
Boc International (China) Co.,Ltd. stated that as the half-year report disclosure window approaches, market focus will gradually shift from thematic trading to performance verification, with growth sectors remaining the primary investment theme.
Sectors that simultaneously demonstrate improving fundamentals, order fulfillment, and profit growth will likely be more favored.
Boc International (China) Co.,Ltd. believes that the computing power and semiconductor industry chains within the ChiNext and STAR markets remain the clearest growth themes with strong fundamentals, as AI adoption continues to drive investment in computing infrastructure, with orders and capital expenditures in multiple segments of the supply chain remaining high.
Furthermore, after previous adjustments, the new energy sector, including lithium batteries, could see profit recovery for leading companies with cost advantages and global competitiveness if overseas demand improves, energy storage scales up, and new technology pathways advance.
Beyond the AI and new energy themes, Boc International (China) Co.,Ltd. also highlighted three other areas worthy of attention: the metals sector continues to benefit from supply-demand mismatches driven by new industrial demand and global supply-side shocks, with the long-term logic for precious metals remaining intact; the machinery and equipment sector, particularly the robotics segment, is entering a new cycle of component innovation; and the securities sector, whose valuation remains at historically low-to-mid levels, may see a tactical trading window for expectation reversal as market activity stays high, mergers and acquisitions progress, and capital market reforms deepen.
Oriental Securities noted that the overall performance of non-tech stocks has strengthened, and the probability of the Shanghai Composite Index continuing to challenge the 4150-point area is very high.
From a technical perspective, Monday's strong bullish candlestick broke through the sustained downtrend channel since May 21st, and both indicators continued to operate outside the channel during yesterday's session.
This indicates that even as specific tech themes continue to lead the market, the overall performance of non-tech stocks has also improved, meaning the overall market sentiment is getting better for all investors.
Overall, the market is tenaciously maintaining a pattern of volatile upward movement, and the likelihood of the Shanghai Composite Index continuing to challenge the 4150-point area is very high.
Founder Securities suggested that the market is poised to begin trading on half-year report expectations, with investment opportunities focusing on the tech growth and high-growth sectors.
The technical correction driven by profit-taking and liquidity concerns may be nearing its end.
Following the conclusion of this phase of adjustment, the market is expected to start trading on half-year report expectations.
While the Shanghai Composite Index faces some pressure near the 4100-point level, trading volume remaining above 3 trillion yuan indicates the market is not lacking in buying support.
In terms of allocation, focus on investment opportunities in the tech growth and high-growth sectors.
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