Zhongtai Securities: Tech Still the Key Theme as July Earnings Windows Open

Zhongtai Securities said the disclosure window for July interim earnings pre-announcements and results from major overseas companies is approaching, and it expects more short-term opportunities in equity markets that could improve overall profitability for investors, according to Jiemian News. The brokerage said market leadership could broaden within the tech theme while non-tech sectors may see a bottoming recovery in parallel. Zhongtai Securities added that the tech rally is not yet over. Its multi-asset team said it modeled major cloud providers’ capital expenditure against the total market capitalization of tech hardware, and found that pricing of core U.S. tech stocks such as Nvidia remains highly aligned with capex; after sentiment improves, tech is still expected to be the most important main theme.