June 17 — Nomura Orient International Securities said market volatility creates
a window to raise defensive dividend exposure but warned overseas macro shocks
could extend the adjustment. Near term it recommends boosting dividend-yielding
sectors, prioritizing banks with limited capital consumption and sustainably
high ROE and dividend yields, and central SOE property leaders that benefit from
faster supply-side concentration. Under its base case the recent high/low
rotation is temporary; medium- to long-term A-share returns will be driven
mainly by the technology theme. Within tech it favors compute hardware
constrained by capacity — notably storage, optical communications, AI power
systems and liquid cooling — plus supporting infrastructure such as gas
turbines, and domestic compute suppliers that benefit from policy support and
strong demand.
