Huatai Securities: July Market Style May Shift Toward Balanced Offense and Defense

Huatai Securities said in a July research note that market style may shift from an “extreme” structural approach to a more balanced offense-and-defense stance, with capital likely to keep concentrating on areas where fundamentals are improving and earnings are being delivered, according to Jiemian News. The brokerage said the transportation sector could be positioned around “improving fundamentals + mid-year report certainty + defensiveness,” citing easing cost pressure from falling oil prices and the start of the summer travel season as potential catalysts. It also said the express delivery industry’s anti-price-war progress has continued, with express prices improving year-on-year, and noted that fuel surcharges could help pass through oil-price costs during the interim-report window. Huatai added that lower oil prices may ease cost pressure for highway freight, while recovering traffic volumes could support road operators’ fundamentals.