East Money Securities deputy head of research Chen Guo said the Shanghai
Composite has corrected from prior highs and, irrespective of external
volatility, he no longer adopts a structural bearish view on A-shares. He
expects index upside to materially exceed downside over the next quarter and
advises actively seeking structural long opportunities. Chen says the next
market phase will be more balanced; in tech he prefers selective China AI
supply-chain names that meet four criteria: revenue and profit growth that won’t
peak this year, market cap not overstating their industrial/economic position,
H1 results likely to beat optimistic expectations, and no expected downward
revision to next-year earnings. He is especially bullish on carbon-related large
caps in H2 and highlights A-share and Hong Kong-listed leaders in new and legacy
energy, financials and property, new consumption, and internet as candidates for
systemic re-rating.
