[Brokerage Focus] CICC: With the further strengthening of stable growth policies, the Consumer sector is expected to gradually welcome a trend market.
According to the report by China International Capital Corporation and based on Wind Statistics, since the beginning of the year, the Consumer and CSI Consumer 360 index have risen by 0.5% and 1.4%, respectively. In the context of significant attention in the Technology growth sector, their overall performance is relatively mild, slightly better than the overall market (CSI 300 Index declined slightly by 0.5% during the same period). The bank indicated that recently, with the policy dividends in the consumer sector and marginal improvements in China's economic growth expectations, attention to the Consumer Sector has increased, but market volatility remains high. Considering the current macro environment, the overall allocation for the Consumer Sector may still be in a left-leaning phase, and there may still be periodic structural opportunities in the short to medium term (3-6 months).
New narratives in the travel market, a duet of OTAs moving downward and outward.
From this point, looking back at the CSI Consumer 360 index in 2024, the tourism Industry shows explosive growth, making it a leader and gradually establishing an important strategic position for the tourism Industry in the national economy.
Can the AI boom driven by Baidu's open-source large models and Tencent's chip purchases in the Hong Kong stock market continue?
① How does Baidu's strategy of freely opening up and planning to open source large models affect its long-term competitiveness in cloud business and ad monetization? ② Tencent's increased procurement of H20 chips to support the implementation of large models, does it mean that the domestic computing power infrastructure still highly relies on overseas supply chains?
How to grasp the main line in a volatile market? Technology and Consumer dual-driven may be key.
Yesterday, the market fluctuated throughout the day, with a single-day transaction volume shrinking by over 200 billion. After experiencing last Friday's significant rise in volume, the Index's decline in volume and retracement is also reasonable, and the subsequent view will still lean towards a fluctuating upward structure.
The market rebound has opened a new pattern, with Consumer finance taking turns to make efforts, and Technology stocks may face a restorative opportunity.
Last Friday, the market saw a significant rebound in trading volume, with the Shanghai Composite Index climbing back above 3400 points. After experiencing violent fluctuations in the middle of last week, the market again showed signs of breaking upwards. Although this does not mean that a new round of index-driven market movements will immediately begin, it fundamentally alleviates the concerns over the previous breakdowns, and the subsequent view should still be focused on a structure of oscillation upwards.
East Asian Securities: The valuation of Hong Kong Technology stocks still has room for revaluation, raising the Target Price for the Hang Seng Index to 26,000 points.
According to Zhitong Finance APP, Hong Kong stocks have recently significantly outperformed A-shares. Regarding the large gap in the performance of the two, Chan Wai Chung, senior investment strategist at East Asia Securities, pointed out that Hong Kong stocks have a higher weight in Technology stocks, while A-shares are not dominated by Technology stocks, making Hong Kong stocks more beneficial when speculating on the AI Concept.
