CSC Financial says divergent Fed rate-hike expectations have unsettled
investors; a confirmed Fed hike would consolidate consensus and could kick off a
new market leg. A-shares staged a V-shaped rebound on Friday after four negative
shocks; combined with an expected Fed hike, Thursday's sharp volume contraction
and a relatively complete pullback in the tech sector, CSC sees a potential
market turning point and the prospect of a counteroffensive. Portfolio guidance:
maintain a balanced base with flexible tilts — increase exposure to
communications and electronics as the offensive core; hold banks and insurers as
defensive, low-valuation core positions; monitor oil & gas extraction, coal
chemicals, coal, oilfield services and shipping/ports for upside from sustained
high oil prices.
