CICC's analysis reveals that since late July, market indices have demonstrated a consolidation trend, hinting at a potential recovery phase post-correction. Present investment strategies could center around two key themes:
Firstly, meticulously curate high-growth sectors. Following adjustments, the technology sector has witnessed a notable decrease in overvaluation. High-growth niches within the AI infrastructure domain, such as optical communications and PCBs, are anticipated to sustain robust growth throughout this year. Within the semiconductor and computing power sectors, it is crucial to scrutinize the harmony between fundamentals and valuations, as the trajectories of tech growth stocks are poised to diverge. Concurrently, several firms in the innovative pharmaceutical industry are approaching pivotal stages of clinical data verification, meriting selective focus.
Secondly, capitalize on cyclical upswings. The fundamentals of various sectors are rebounding from cyclical troughs. It is prudent to concentrate on industries exhibiting performance enhancements and refined supply-demand dynamics, taking into account geopolitical landscapes and capacity cycles. Noteworthy sectors include power grid equipment, petrochemicals, construction machinery, and non-bank financial sectors, all benefiting from a conducive capital market environment; the precious metals sector also presents investment allure post-adjustments. The fundamental revival of industries reliant solely on domestic demand remains sluggish and necessitates ongoing scrutiny.