CSC Financial says A-share sentiment has firmed on overseas rebounds, but
domestic liquidity remains in a rebalancing phase; recovery is likely to be
measured as the market consolidates a bottom. The Fed remains cautiously hawkish
and reiterated its 2% inflation target, a short-term headwind for global risk
assets; the Fed noted that stabilising long-end yields and curve flattening
would help mitigate tail risks from overly tight financial conditions. NVIDIA’s
results and guidance materially beat expectations, confirming resilient AI capex
and compute demand and underpinning tech fundamentals. Recommended positioning:
rebalance to improve resilience in a volatile market—maintain exposure to
sectors with confirmed momentum, hold defensive core positions, and add low-base
catch-up names where cheap valuation, institutional underweight and marginal
fundamental improvement coincide. Key sector focuses: AI compute, nonferrous
metals, innovative pharmaceuticals, banks, non-bank financials, oil, coal, steel
and agriculture.
