China International Capital Co said September sector allocation should focus on
structural opportunities signalled by industry momentum. Tech growth is likely
to diverge, requiring selective names: AI infrastructure segments such as
optical communications and PCBs remain in a clear upcycle this year and could
rebound after recent sell-offs; semiconductors and compute firms need closer
alignment of fundamentals and valuations; innovative drug developers entering
clinical data validation merit bottom-up selection. Weighing geopolitics and
capacity-cycle positions, prioritize industries with improving earnings and
tightening supply-demand such as construction machinery, power-grid equipment
and petrochemicals/chemicals. Purely domestic-demand sectors show slower
recovery and require further observation.
