Huatai Securities' analysis reveals that market risk appetite maintained a positive trend in June, with capital continuing to pour into growth sectors. Semiconductors, optical modules, and AI computing power chains remained the focal points of the market, while the high-dividend sector experienced relatively weaker performance. Nevertheless, the heightened volatility within the growth sector during this period underscored the risk-hedging function of dividend-based core holdings at specific junctures.
As we look ahead to July, considering the high degree of crowding in the growth sector, valuations reaching year-to-date peaks, unexpectedly high overseas inflation that has surpassed expectations, and growing anticipation of Federal Reserve rate hikes, the allocation value of the high-dividend sector becomes even more pronounced. It is advisable to concentrate on stable dividend sectors that possess defensive characteristics, such as banking, power, utilities, and transportation.