Style rebalancing sparks discussion, public funds re-embrace "dumbbell-type allocation"

In recent period, the A-share market has seen increased volatility, and style rebalancing has become a hot topic of discussion in the market. It is worth noting that many well-known balanced fund managers have already made preparations in their holdings in the third quarter. Stocks such as Ping An of China, Wanhua Chemical, Xugong Machinery, Sany Heavy Industry, Luoyang Molybdenum, and Industrial Bank are gradually entering the list of heavily held stocks or are being continuously increased in holdings. Many fund managers have indicated in their third-quarter reports that apart from the transformative opportunities brought by AI, there are also investment opportunities in industries such as engineering machinery, chemicals, and non-ferrous metals, where the prices of certain products in specific sectors are at a low level. In the coming years, with the gradual recovery of overseas demand, their income is expected to continue to grow. Following the market's full pricing of high growth in technology in the previous period, some institutions believe that there is a strengthening of market rotation expectations in the near future, and the strength in cyclical sectors is based on the market's assessment of performance and valuation. Therefore, a barbell-type allocation is still the core strategy for balancing risk and return in the current market environment.