STOCKS | Galaxy Securities Recommends Focusing on Earnings to Capture Structural Opportunities Amid Volatility

China's A-share market has continued to trade in a wide range, with stock selection driven by event-based themes and faster sector rotation. According to Jin10, a Galaxy Securities research note said the market showed clear characteristics of a battle over existing liquidity, and was in a phase of style rebalancing as crowding eased and expectations were tested. In the short term, Galaxy Securities said the market was likely to remain range-bound, with structural features continuing to dominate. It noted that July 15 is the mandatory disclosure deadline for A-share listed companies to release preliminary guidance for their semiannual reports, and said the market’s main focus would tilt toward fundamental verification. The note recommended prioritizing leading companies in niche segments that have real orders and earnings expectations. Galaxy Securities also said that SK Hynix’s Nasdaq listing, together with progress in Changxin Technology’s IPO, had strengthened the investment logic for the memory-chip industry and lifted attention on segments such as memory chips, advanced packaging, and semiconductor materials. After earlier valuation digestion, it said a window for positioning in these tracks had become more apparent. Overall, the note recommended using earnings as an anchor and seeking structural opportunities amid volatility.