China Galaxy Securities strategist Yang Chao said H2 investment conditions
should improve as oil prices ease, supporting a return to multi-theme, parallel
market rallies. Cap-style should become more balanced with a gradual tilt toward
mid- and large-cap leaders. Growth is likely to outperform, backed by earnings
and ongoing policy implementation, drawing resources to technology and high-end
manufacturing. Key structural plays: AI “infrastructure” — overseas AI capex
expansion combined with China’s new infrastructure should accelerate build-out
of compute, telecoms and power, sustaining sector cyclicality; cyclicals and
manufacturing — imported inflation is lifting price floors and, together with
new infrastructure and a pick-up in export-driven manufacturing demand, could
support a recovery in some commodities and cyclical manufacturing names; and
dividend sectors with expected earnings improvement and stable, sustainable
payouts.
