CITIC Construction Investment: Pricing returns to fundamentals, seizing the growth recovery window.

CITIC Securities' research report pointed out that in July, A-shares underwent an overall correction, with a deep adjustment in growth style. The Shanghai Composite Index and the ChiNext Index fell by 6.4% and 23.0%, respectively, significantly pressuring small-cap growth stocks; however, coal, oil and petrochemicals, and banks rose against the trend. The rolling monthly decline of the ChiNext Index reached 20%. As mid-year reports are disclosed and overseas technology events materialize, the market's pricing logic is returning to fundamentals, focusing on the valuation recovery opportunities in technology growth. In terms of prosperity, tech manufacturing and industrial metals outperformed: the price increase of storage continues, and capital expenditure from overseas cloud vendors continues to be revised upwards; the production of industrial robots increased by 28% year-on-year, with automation capital expenditure continuously materializing; industrial metal inventories are low, coupled with supply constraints, providing price support from both supply and demand sides. In terms of allocation, it is recommended to focus on the rebound opportunities of technology growth that have been oversold in July but still show improving prosperity, while also considering cycles and manufacturing sectors with strong performance improvement certainty.