CSC Financial says July saw a broad A-share pullback and deep correction in
growth: China's Shanghai Composite Index fell 6.4% and the ChiNext -23.0%, with
small-cap growth notably pressured; coal, oil & petrochemicals and banks
outperformed. With interim results disclosure and overseas tech shocks abating,
market pricing is reverting to fundamentals, creating valuation-repair
opportunities in tech growth. Cyclical beaters include tech manufacturing and
industrial metals: memory prices continue to rise amid higher cloud-provider
capex guidance; industrial-robot output was up 28% YoY and automation capex is
being realized; industrial-metal inventories remain low alongside supply
constraints, supporting prices. Recommended positioning: target rebounds in
July-oversold but still uptrending tech-growth names, while keeping exposure to
cyclicals and manufacturing names with clearer earnings improvement.
