Dongfang Caifu's Chen Guo: The intensifying fluctuations overseas have not changed the direction of rebalancing within A-shares.

On August 3, the Chen Guo team from Dongfang Caifu Strategy released their latest research report indicating that the escalation of overseas volatility has not changed the direction of internal rebalancing in the A-share market. Since July, the distribution of stock returns in the A-share market has gradually shifted to the right, while the return distribution of active equity funds has somewhat shifted to the left. Industries that had previously experienced stagnation, such as coal, oil and petrochemicals, banking, and food and beverage, have shown significant recovery, and market opportunities are spreading to more carbon-based and silicon-based downstream sectors. The transaction proportion of silicon-based upstream remains high, and completing the rebalancing in terms of allocation is expected to take more time. In terms of asset allocation, the strategy of "rebalancing allocation and proactively positioning for a rebound" will continue to be maintained. Focus will remain on blue-chip value directions with growth logic in sectors such as new energy, non-ferrous metals, and non-bank finance, with particular attention to AI applications within technology, especially in Hong Kong stocks related to the internet, computer, and media sectors; finally, according to the principle of "rebalancing allocation," if silicon-based upstream allocations are at a low level, it is also viable to pay attention to domestic "true technology" leaders that have undergone sufficient adjustment, with reasonable valuations and clear competitive barriers.