AI TRENDS | China Securities Analysts Outline Factors Shaping Third-Quarter Market Trends

CITIC Securities analysts said a mix of fundamentals, liquidity conditions, and risk appetite will determine market performance in the third quarter, with AI computing power remaining a key area to watch. According to Odaily, the report said AI computing demand remains strong, and investors should pay attention to corporate earnings releases and overseas financial reports. It added that with macroeconomic pressure persisting since April, measures to support the economy discussed at the July Politburo meeting are important. On liquidity, the report said external disruptions have increased while domestic conditions remain neutral. On risk appetite, it said geopolitical events and listings by major industry companies could cause short-term market volatility. The report also noted that due to linkages among global technology stocks, overseas computing power trends in markets such as Japan, South Korea, and the United States should be monitored. For sector allocation, the report said the underlying positive logic for AI computing remains unchanged but volatility has increased, recommending caution about chasing rallies and suggesting positioning on pullbacks. It said lithium battery-related sectors may enter a peak season and that energy storage demand continues to recover, creating a potential opportunity for a phased valuation rebound in new energy. The report also said high-dividend sectors may see a rebound after declines and currently offer relatively attractive allocation value. It highlighted areas including banks, coal, utilities, AI, optical modules, storage, chips, industrial metals, and lithium battery materials.