Group 1 - China Galaxy Securities predicts that the overall A-share market will show a震荡向上的行情特征 in the second half of the year, with current valuations at a historical medium level and lower than overseas mature markets, indicating high investment cost-effectiveness [1] - The firm emphasizes that policy support for long-term capital entering the market and the expansion of equity public funds will likely maintain a stable and improving capital environment for A-shares [1] - The focus on technology innovation as a core driver for new supply-side reforms in A-shares is highlighted, with specific attention to sectors like AI computing, AI applications, and innovative pharmaceuticals [1] Group 2 - CITIC Securities characterizes the upcoming mid-term report season as having a risk preference decline and weak fundamentals, suggesting a focus on the North American AI hardware supply chain despite recent pullbacks [2] - The firm identifies sectors with strong mid-term report performance certainty, including wind power, gaming, and rare metals, while also noting that some segments in new energy have reached reasonable valuation levels [2] - Recommendations include considering banks that continue to attract capital inflows as a relatively stable investment choice [2] Group 3 - Huajin Securities advises focusing on valuation cost-effectiveness and balancing investments between technology growth and undervalued blue-chip stocks, given the positive domestic policies and liquidity conditions [3] - The firm points out that sectors like media, automotive, and power equipment have low transaction volumes and turnover rates, indicating potential for sentiment recovery [3] - Short-term focus is suggested on industries supported by policies and trends, such as new energy vehicles and financial services [3] Group 4 - Hua'an Securities maintains a positive outlook for the second half of the year on high-dividend sectors like banking and insurance, as well as industries represented by new metal materials [4] - The firm notes that while loose liquidity supports the market, slow internal growth recovery and policy considerations may limit rapid upward movement [4] - The overall A-share profit forecast indicates a trend of improvement starting from Q4 2024, which could be a significant factor for market upward breakthroughs [4]

Core Viewpoint - China Galaxy Securities predicts that the A-share market will exhibit a fluctuating upward trend in the second half of 2025, supported by favorable valuation levels and policy measures aimed at increasing long-term capital inflow [1] Group 1: Market Valuation and Trends - Current A-share valuations are at a historical medium level and are relatively low compared to overseas mature markets, indicating a high investment cost-performance ratio due to risk premiums and dividend yields [1] - The overall market is expected to show a fluctuating upward trend in the second half of 2025, although attention should be paid to uncertainties from overseas and the pace of domestic economic recovery [1] Group 2: Policy and Capital Inflow - Policies are being implemented to encourage long-term capital to enter the market, alongside the expansion of equity public funds and supportive policy tools, which are likely to maintain a stable and improving capital environment for A-shares [1] Group 3: Sector Focus - Technology innovation is identified as the core driver for the new supply-side reform in A-shares, with the TMT sector experiencing a decrease in crowding and a recovery in first-quarter activity, leading to accelerated capital expenditure in specific sub-industries [1] - Investment opportunities are suggested in areas such as AI computing power, AI applications, embodied intelligence, and innovative pharmaceuticals [1] - Defensive assets like dividend stocks are highlighted for their protective attributes, with state-owned enterprises offering high dividend yields aligning well with medium to long-term capital allocation needs [1]