This Friday, global equity markets experienced significant volatility, with the technology and growth sectors seeing notable corrections and market risk appetite cooling. The nature of this adjustment and its subsequent trajectory have become the focus of market participants.

According to the latest institutional analysis, the heightened volatility in equity markets is more a repricing driven by crowded trading in the early stages and short-term changes in the AI hardware industry landscape, rather than the end of the market trend. The market may use this volatility to complete a structural rebalancing. Institutions recommend focusing on a balanced strategy of “technology rotation plus defensive allocation,” with sectors such as cyclical and dividend stocks seeing increased asset allocation value.

Institutional Investment Outlook: Market may leverage volatility to achieve structural rebalancing

The adjustment in U.S. stocks on Friday appears to be a change in macroeconomic and industry logic, but it is essentially a capital behavior, affecting sentiment and structure. Looking ahead, amid a series of global liquidity events, high volatility in tech stocks may persist, and the market may use this to complete a round of structural rebalancing. In the short term, the market enters an earnings vacuum period, and by July, a new round of earnings resonance from domestic and international tech companies is expected, potentially reigniting the tech sector’s rally.

China Galaxy Securities: Balanced allocation focusing on three main themes

Going forward, it is recommended to adopt a balanced strategy of “technology rotation plus defensive allocation,” focusing on three main themes: first, sectors benefiting from product price increases and earnings recovery, with key allocations in basic chemicals, petroleum and petrochemicals, non-ferrous metals (minor metals), building materials, and steel; second, the value of defensive base positions, focusing on coal, coal chemicals, finance (banks), public utilities, and new energy; third, within the current tech rally, sub-sectors with earnings support may have sustained performance, but caution is needed against short-term concentrated trading and external sentiment volatility risks.

Kaiyuan Securities: Tech growth remains the main market theme

This week, heightened volatility in equity markets is more a repricing due to crowded early-stage trading and short-term changes in the AI hardware industry’s interest pattern, rather than the end of the trend. Looking forward, tech growth remains the main market theme, but not simply pursuing high prosperity: the computing power theme is not over, but internally, more emphasis should be placed on domestic computing power, driven by industry trends and order slope improvements; AI prosperity is spilling over along the “computing power – electricity – resources” chain, with focus on power equipment, power operators, and some energy metal sectors; in the second half of AI, attention should be paid to internet platforms as entry assets, which may carry users, scenarios, traffic, and commercialization.

Zhongou Fund: Focus on opportunities in tech, cyclical, and dividend sectors

The scale advantages and policy advantages of Chinese assets may allow investors to achieve strategic excess returns through more diversified allocations. Investors can share the dividends of domestic economic recovery by balancing allocations in tech and cyclical sectors. Specifically, in the tech main line, focus on computing power hardware directions, as well as domestic computing power sectors benefiting from policies and high prosperity; in cyclical sectors, focus on high-quality enterprises in China’s energy and chemical sectors with scale effects; in dividend sectors, focus on bank stocks with limited capital consumption and potential to maintain high ROE and dividend yields.

Guojin Fund: The development trend of the tech industry is expected to continue

The development trend of the tech industry has not been broken; the phased adjustment is mainly due to changes in trading-side capital expectations and profit-taking by some funds. Before the tech industry trend turns, market investment opportunities still exist, but after a rapid rebound, it is necessary to find sub-sectors with more sustained earnings performance.

GF Fund: Market trends may shift to earnings-driven

Looking ahead, repeated external conflicts may periodically affect risk appetite but will not change the overall trend. Market trends may shift from valuation-driven to earnings-driven. In terms of industry allocation, against the backdrop of accelerating AI industry evolution, it is still recommended to focus on optical communications and power infrastructure sectors, which have high prosperity and relatively low crowding in the AI chain, as well as the engineering machinery industry benefiting from the logic of Chinese manufacturing going global.

Major Events Impacting Future Investment: CSRC Chairman Wu Qing: Firmly crack down on illegal activities such as market manipulation and disrupting market order

CSRC Chairman Wu Qing stated at the 4th Member Representative Conference of the Asset Management Association of China on June 6 that, for the current and future period, the entire industry should thoroughly implement the “15th Five-Year Plan” outline, fully implement the new “National Nine Articles” and the capital market “1+N”

AI hardware

AI hardware refers to the specialized physical components, such as GPUs, TPUs, and neural processing units (NPUs), designed to accelerate artificial intelligence computations. Its history began with early attempts in the 1980s using parallel processing, but modern AI hardware surged in the 2010s with NVIDIA’s GPUs enabling deep learning breakthroughs and the rise of custom chips from companies like Google and Apple. Today, AI hardware continues to evolve with innovations in neuromorphic computing and energy-efficient designs to support increasingly complex AI models.

basic chemicals

“Basic chemicals” is not a specific place or cultural site, but rather a category of industrial raw materials. Historically, the production of basic chemicals like sulfuric acid and ammonia began during the Industrial Revolution, enabling modern manufacturing and agriculture. Today, these chemicals are central to global economies, produced in large-scale plants worldwide.

petroleum and petrochemicals

Petroleum and petrochemicals are not a single place or cultural site, but rather a vast industrial sector with roots in the 19th century, when the first commercial oil wells were drilled. The modern industry began with the refining of crude oil into kerosene for lighting, later expanding to produce gasoline, plastics, and synthetic materials that transformed global economies and daily life. Key historical sites include the world’s first oil refinery in Ploiești, Romania, and the Spindletop gusher in Texas, which launched the modern petroleum age.

non-ferrous metals (minor metals)

“Non-ferrous metals (minor metals)” refer to a category of metals that do not contain iron, such as copper, aluminum, zinc, lead, nickel, and tin, as well as rarer metals like cobalt, tungsten, and molybdenum. Historically, the extraction and use of these metals have been central to technological advancements, from the Bronze Age (copper and tin) to the Industrial Revolution (zinc and lead) and modern electronics (rare earth elements). Their production often involves complex mining and refining processes, and their strategic importance has influenced global trade, conflicts, and economic development.

building materials

“Building materials” is not a specific place or cultural site, but rather a general category of resources like stone, wood, and brick used in construction. Historically, the choice of materials has been shaped by local availability, climate, and technology, evolving from ancient mud-brick and timber to modern steel and concrete. This evolution reflects human ingenuity and cultural priorities, with materials often defining the style and durability of iconic structures worldwide.

steel

Steel is not a specific place or cultural site, but rather a man-made alloy of iron and carbon that has profoundly shaped human civilization. Its large-scale production began in the 19th century with the Bessemer process, fueling the Industrial Revolution and enabling the construction of skyscrapers, bridges, and railways. As a material, steel symbolizes modern industrial strength and economic development, with historic centers of production like Pittsburgh, USA, and Sheffield, UK, becoming iconic cultural landmarks of the steel industry.

coal

Coal is not a single place or cultural site, but a fossil fuel formed from ancient plant matter over millions of years. Its history is central to the Industrial Revolution, powering factories, trains, and ships from the 18th century onward, and it fueled global economic growth while also causing significant environmental and social impacts. Today, many former coal mining regions, such as those in Wales, Pennsylvania, or the Ruhr Valley, have become cultural heritage sites, preserving the history of mining communities and the transition to cleaner energy.

finance (banks)

The history of finance and banking dates back to ancient civilizations like Mesopotamia and Rome, where temples often served as early banks for storing grain and valuables. Modern banking emerged in Renaissance Italy, with institutions like the Medici Bank pioneering double-entry bookkeeping and credit systems. Today, banks form the backbone of global economies, facilitating loans, savings, and international trade through complex financial networks.