On June 17 at its 2026 mid-year strategy meeting in Shanghai, Nomura Orient
International Securities said near-term risks center on shifts in US Treasury
yield expectations and their spillovers to emerging markets. Strong US May
nonfarm payrolls have lifted US yields; a marginal rise in inflation resilience
has pressured global equities, and crowded AI positioning has amplified market
volatility. Over the medium term the firm says China’s asset scale and policy
support should enable strategic excess returns via diversified A-share
allocations. Technology and cyclical sectors are identified as the primary
drivers of A-share earnings improvement, and investors are advised to maintain
balanced exposure to both to participate in China’s recovery and growth.
