Huatai Securities says China’s technology market is now closer to a "trading bottom emerging." Rationale: 1) correction space has become ample, with core themes retracing into oversold ranges typical of high-elasticity sectors; 2) domestic and offshore leveraged trading funds have largely cleared out, reversing all Q2 inflows, and US hedge funds and Korean leveraged positions have contracted from extreme levels; 3) recent selling pressure remains heavy and no major new buying has appeared. The c

Huatai Securities says China’s technology market is now closer to a "trading bottom emerging." Rationale: 1) correction space has become ample, with core themes retracing into oversold ranges typical of high-elasticity sectors; 2) domestic and offshore leveraged trading funds have largely cleared out, reversing all Q2 inflows, and US hedge funds and Korean leveraged positions have contracted from extreme levels; 3) recent selling pressure remains heavy and no major new buying has appeared. The critical window for a sustainable rebound is late August, when interim results, NVIDIA’s earnings and redemption pressures will jointly determine whether tech can start a new primary advance. Positioning: keep dividend names as base holdings; in a tech rebound prioritize semiconductor equipment and other names with high earnings certainty; for non-core exposure focus on stocks with mid-year report improvement, such as brokerages and innovative drugmakers.