China International Capital Co research says 1H 2026 A-share tech growth was
driven by AI supply chain and high-end manufacturing, sustaining a structural
rally. Since July, rising negative narratives around the global AI chain,
expectations of tighter overseas liquidity and increased Middle East
geopolitical risk have triggered a notable correction in previously strong
growth sectors. With growth-style volatility higher and risk appetite weaker,
the firm recommends re-evaluating the relative allocation to dividend-paying
assets. Given limited aggregate growth elasticity alongside pockets of
structural high growth and elevated risk-off swings, a "technology + dividends"
dumbbell allocation is seen as a way to balance earnings growth potential,
shareholder cash returns and portfolio stability. For implementation, it advises
targeting tech names with clear industry trends, durable competitive advantages
and demonstrated earnings delivery; and dividend names with stable earnings and
cash flow, sustainable payout policies and reasonable valuations.
