AI TRENDS | Noan Fund Says A-Share Pullback Reflects Structural Rebalancing, Not Systemic Risk

Noan Fund said the recent adjustment in China’s A-share market was more of a structural rebalancing driven by short-term negative factors, rather than systemic risk caused by a change in the market’s core logic. According to Jin10, Noan Fund released its latest view on the A-share market on July 9. The firm’s research team said volatility in global markets, especially technology stocks, has been rising. It said the moves essentially reflect a tug-of-war between bulls and bears as capital rotates around expectations for global capital expenditure and marginal industry changes, while long-term fundamentals remain positive. Noan Fund said fluctuations triggered by some “noise” recently may become an opportunity for medium- to long-term positioning. It added that the current disturbance is likely to be more sentiment-driven and structure-driven. On portfolio positioning, Noan Fund said it would continue to stick to the main theme of strong business momentum and wait for interim report results to provide confirmation. It said AI remains the area with the strongest consensus. It also said expectations have been revised upward for some advanced manufacturing segments, including AI upstream equipment, battery energy storage, and shipbuilding. In addition, it said upstream resource products such as minor metals, energy metals, and chemicals are also worth watching.