Qualcomm(US:QCOM) Huachuang Securities·2025-10-12 12:45Group 1 - The report highlights the re-emergence of US-China trade tensions since October, with key areas of focus including shipping port fees, semiconductors, rare earths, and tariffs. The market response has seen initial pullbacks in risk assets and a rise in safe-haven asset trading [2][10][12] - The report identifies five key differences between the current trade tensions and those from April, including a shift from generalized to targeted measures, the active role of China in leveraging its strengths, a transition from multi-front to single-front US strategies, resilience in both economies, and greater monetary and fiscal space for both parties [10][19][20] Group 2 - The impact of trade tensions on the market is expected to be limited in terms of fundamental economic effects, primarily affecting risk appetite in the short term. The report suggests that the current market may reflect profit-taking behavior following a six-month rise in global risk assets, predicting that the magnitude and duration of the pullback will be less severe than in April [3][35][41] - The report emphasizes the necessity for structural rebalancing in the market, indicating that the current industry differentiation has reached a significant level, with leading sectors showing an average increase of 51% since April, while lagging sectors have seen no growth [5][11][17] Group 3 - The report recommends focusing on two main investment opportunities post-rebalancing: the technology sector, particularly in hard tech areas such as AI applications and quantum computing, and cyclical sectors with tight supply conditions, including non-ferrous metals and chemicals [6][11][12] - It notes that the trade tensions will not alter the fundamental recovery and bull market dynamics, which are shifting from liquidity-driven to fundamentals-driven, suggesting that adjustments in the market present opportunities for strategic asset allocation [6][11][12]