Nomura Orient International Securities: Balanced allocation of technology and cyclical sectors to benefit from the recovery and growth of the Chinese economy.

On June 17th, Nomura Orient International Securities held the 2026 Mid-term Strategy Meeting in Shanghai. Nomura Orient International Securities stated in its latest research viewpoint that in the short term, attention should be paid to the potential impact of changes in US bond yield expectations on emerging markets. Due to strong US non-farm payroll data in May, the strengthening of US bond yields has attracted more investors' attention. The marginal changes in inflation resilience among the three fundamental characteristics mentioned above have impacted global stock markets, coupled with the high-crowded trading characteristics accumulated in the field of AI, leading to a significant increase in global market volatility. From a more medium to long-term perspective, the scale advantage and policy advantage of Chinese assets are expected to enable investors to achieve strategic excess returns through more diversified A-share allocations. The technology and cyclical sectors are the core driving forces behind the improvement in A-share earnings. This trend is expected to continue, and investors can share in China's economic recovery and growth by balanced allocation to technology and cyclical sectors.