STOCKS | CICC Sees A-Share Market Holding W-Shaped Bottom Volatility as AI Remains Long-Term Theme

CICC said China's A-share market will likely maintain W-shaped bottom volatility in the short term, while AI remains the long-term main theme. According to Jin10, the firm said July margin financing funds exited quickly, short-term market liquidity has stabilized under regulatory support, and incremental on-exchange funds still have support. It also cited higher oil prices driven by the Middle East situation, rising U.S. Treasury yields, and renewed expectations of U.S. Federal Reserve rate hikes as external pressures on global risk appetite. CICC said the medium- to long-term logic of the AI industry remains solid, pointing to KimiK3 reshaping the performance-cost narrative, expanding workflow coverage, accelerating penetration into vertical sectors, and Google raising capital expenditure against the trend, which verifies the mismatch between AI computing supply and demand. It said the market is still suitable for waiting for external uncertainties to clear while advancing structural rebalancing, with focus on AI, midstream manufacturing export chains, and upstream resources and dividend defense.