On May 20th, the three major A-share indices opened collectively lower, with the Shanghai Composite Index down 0.4% and the ChiNext Index down 0.48%. In terms of sector performance, real estate services, food & beverage, and coal sectors led the gains, while lithium mining, precious metals, and aerospace equipment sectors were among the biggest decliners.
Looking ahead, some institutions offer their perspectives. One securities firm suggests the market may be brewing a daily-level rebound, recommending attention to five key areas: energy storage and solid-state batteries, AI application sectors, humanoid robots, intelligent driving, and the low-altitude economy. It notes the current market is in a phase where indices provide the stage for individual stocks to perform.
Another securities firm indicates that after a period of consolidation, a summer rally is expected to resume. It highlights that despite short-term pressures from global inflation surprises, trading activity in A-shares remains robust, and the current adjustment is considered healthy. The firm advises focusing on high-growth technology sectors like computing hardware, new energy, and robotics, as well as upstream resources related to energy security, such as chemicals.
A third securities firm points out that the period following the earnings season, often referred to as the "earnings vacuum," typically sees market valuation shift from focusing on profit revisions to long-term expectations, industry events, and policy catalysts. It suggests that while short-term volatility in tech-heavy indices may increase due to elevated sentiment, the underlying positive trend for technology sectors, supported by strong industry momentum, remains intact. The firm expects technology to likely remain a high-growth focus heading into the mid-year earnings reporting window.
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