Huatai Securities' mid-2026 outlook says an AI-led tech cycle, global
manufacturing recovery and limited scope for further large central-bank hikes
support continued risk-asset preference in H2. Under a K-shaped economic
divergence, it expects AI supply chain and commodities to outperform
consumption, manufacturing to outperform services, and silicon-based sectors to
outperform carbon-based. With global liquidity peaking and receding and limited
room for valuation rerating, fundamentals (the numerator) will be the decisive
driver; the firm retains a preference: AI chain > commodities > gold > bonds.
For equities, A-share trends remain intact, with stock and sector selection and
timing more important than index exposure. After extreme market dispersion,
capital may stage short-term rotations from winners to laggards; Huatai
recommends flexible positioning and keeping some cash to weather high
volatility.
