Zhongtai Securities Expects China A-Shares to Stay Rangebound for One to Two Weeks

Zhongtai Securities said it expects the market to remain in a bottoming, rangebound phase over the next one to two weeks, with clearer downside support and continued consolidation. According to ChainCatcher, the brokerage’s research note said that after a major IPO lists, the reduction of uncertainty and a recovery in sentiment could support a move toward prior highs or new highs. Zhongtai Securities added that the market’s style is likely to remain characterized by “technology diffusion” rather than a rotation into different themes. In technology, it highlighted storage and semiconductor equipment, as well as overseas computing-power supply chains, calling storage and semiconductor equipment the most certain direction at present. Outside technology, it pointed to new energy, AI-related new materials and minor metals, construction machinery, and brokerages. It said medium-term support for new energy could come from rising electricity demand tied to AI computing expansion and from overseas expansion. For AI-related new materials, it said a price-increase cycle for copper-clad laminate (CCL) has begun. It also said brokerages could benefit from IPO follow-on investment and active trading, leaving room for tactical opportunities.