The organization predicts that the A-share market will see a strong but fluctuating trend, AI has not yet entered a bubble stage, and the Southern A500ETF has risen by over 1%.

On June 17th, the trading of A500ETF in Southern China was active, with a 1.19% increase in value and a trading volume of 27.81 billion yuan as of the time of writing. Changjiang Securities stated that in the context of accelerated global AI capital expenditure and domestic corporate profit recovery, it is expected that the A-share market will fluctuate and strengthen, with AI infrastructure and energy security still being the main themes. In terms of investment direction, the focus should be on AI infrastructure and resources. Firstly, due to technology capital expenditure exceeding expectations, it is recommended to invest in AI hardware such as optical modules, storage, and chips, as well as new technology routes that improve computing efficiency - advanced packaging, with a focus on packaging testing and manufacturing, glass substrates, etc. Second, with the gradual easing of tensions between the US and Iran, attention should be paid to sectors such as non-ferrous metals, chemicals, machinery, and automobiles. Western Securities believes that this bull market cycle requires a change in thinking from the dichotomy mindset of AI and "rising prices" counter-cyclical, to considering both the high volatility of AI and the high probability of "rising prices" counter-cyclical. AI has not yet experienced a bubble, so growth investors need to accept the high volatility of AI computing hardware; PPI price increases will eventually be transmitted to CPI, so value investors need to grasp the chain of PPI price increases and patiently wait for the expected repair of the "balance sheet" in the second half of the year to drive the CPI price increase chain. Investors can use A500ETF in Southern China and its affiliated funds for easy investment positioning.