Huatai Securities' mid-2026 outlook says an AI-led tech cycle, global manufacturing recovery and limited scope for further large central-bank hikes support continued risk-asset preference in H2. Under a K-shaped economic divergence, it expects AI supply chain and commodities to outperform consumption, manufacturing to outperform services, and silicon-based sectors to outperform carbon-based. With global liquidity peaking and receding and limited room for valuation rerating, fundamentals (the num

Huatai Securities' mid-2026 outlook says an AI-led tech cycle, global manufacturing recovery and limited scope for further large central-bank hikes support continued risk-asset preference in H2. Under a K-shaped economic divergence, it expects AI supply chain and commodities to outperform consumption, manufacturing to outperform services, and silicon-based sectors to outperform carbon-based. With global liquidity peaking and receding and limited room for valuation rerating, fundamentals (the numerator) will be the decisive driver; the firm retains a preference: AI chain > commodities > gold > bonds. For equities, A-share trends remain intact, with stock and sector selection and timing more important than index exposure. After extreme market dispersion, capital may stage short-term rotations from winners to laggards; Huatai recommends flexible positioning and keeping some cash to weather high volatility.