Group 1 - China Galaxy Securities believes that the A-share market is expected to show stronger resilience in the long term, reflecting a "self-centered" approach [1] - The report suggests three key investment directions: 1) Defensive attributes of dividend sectors with stable returns amid increasing external uncertainties [1] 2) Clear logic in the "technology narrative" of the A-share market, with potential catalytic opportunities in future industrial trends [1] 3) Investment opportunities in the large consumption sector supported by intensive policies to boost service consumption [1] Group 2 - Huatai Securities indicates that the implementation of public fund reforms is likely to drive valuations in the banking sector [2] - The recent release of the "Action Plan for Promoting High-Quality Development of Public Funds" by the CSRC strengthens the constraints on performance benchmarks, suggesting future fund allocations may align more closely with these benchmarks [2] - The report highlights that there is significant room for increased allocation to banks, with a nearly 10 percentage point deviation from the CSI 300 index expected by Q1 2025 [2] Group 3 - Huatai Securities expresses optimism for the airline industry during the summer travel peak, anticipating airlines will realize ticket prices and profit elasticity [3] - The report notes that the supply growth rate in the airline industry will remain low, combined with effective revenue management by airlines, leading to an expected increase in annual revenue levels [3] - Additionally, a year-on-year decline in oil prices is expected to further enhance airline profitability [3]

Core Viewpoint - The article discusses the impact of tariff shocks on global capital markets, particularly focusing on the Chinese A-share market and the perspectives of major financial institutions like UBS, Goldman Sachs, and Morgan Stanley regarding investment strategies in the current environment [1][2]. Group 1: UBS Insights - UBS analyst Meng Lei suggests that the recent movements in the A-share market may have already priced in potential negative impacts from tariffs, referencing historical data from 2018 where major indices experienced about a 3% decline on the first day of tariff news but stabilized thereafter [3][4]. - Current valuation levels in the A-share market provide a cushion against downside risks, with the Shanghai-Shenzhen 300 Index and all A-shares having static P/E ratios of 11.7x and 13.8x, respectively, both below their five-year averages by 0.7 standard deviations [4]. - The market's stability requires significant net inflows of capital, with institutions like Central Huijin increasing their holdings in ETFs to support market stability [4][5]. Group 2: Goldman Sachs Perspective - Goldman Sachs' chief strategist Liu Jinjun emphasizes that U.S. tariffs affect the fair value of Chinese stocks through multiple variables, including direct income shocks to exporters and potential policy responses [6]. - Liu anticipates that the market may experience downward pressure until trade and policy uncertainties are resolved, suggesting a cautious approach to investment in the short term [6]. Group 3: Morgan Stanley Analysis - Morgan Stanley's Laura Wang indicates that the A-share market is more resilient and should be viewed as a hedging or diversification option amid ongoing market volatility [7][8]. - Wang notes that the sensitivity of A-share investors to policy changes is lower due to the predominance of retail investors, which may lead to more stable performance compared to offshore markets [8].