CITIC Securities says A-share smart-selection stocks endured a prolonged correction in 1H after HarmonyOS-driven ecosystem diversion and higher memory and lithium carbonate prices squeezed volumes, prices and margins, while AI-driven fund inflows drained liquidity. With interim-report headwinds largely priced in and capital rebalancing from AI into non-AI names, the rebound has exceeded expectations. CITIC views this as a right-side buying opportunity and expects August’s new-car catalyst window

CITIC Securities says A-share smart-selection stocks endured a prolonged correction in 1H after HarmonyOS-driven ecosystem diversion and higher memory and lithium carbonate prices squeezed volumes, prices and margins, while AI-driven fund inflows drained liquidity. With interim-report headwinds largely priced in and capital rebalancing from AI into non-AI names, the rebound has exceeded expectations. CITIC views this as a right-side buying opportunity and expects August’s new-car catalyst window to support performance.