Shenwan Hongyuan Strategy Chief Wang Sheng: The selling pressure has already been concentrated and released, and the rebound is not far away

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ME AI message. Wang Sheng, Chief Strategy Analyst at Shenwan Hongyuan, said that the selling pressure has already been concentrated and released, and the rebound is not far off. First, the negative feedback loop between absolute-return funds and small- and mid-sized investors is limited; the microstructure’s stability is expected to naturally recover; with the “steady progress” policy gaining momentum, it is easy to see that it will take effect; and the listing of storage sector leaders also provides a rebound opportunity. Second, an oversold rebound across the AI industry chain is imminent, but a major catalyst is still needed to kick off the medium-term trend. The compute-power theme’s cycle has already been divided into phases; for those whose supply bottlenecks have eased, valuations may be adjusted downward. However, storage price increases are meeting resistance, and profit transmission is not smooth—future market action needs to go through a “slow-paced” phase. Finally, during the rebound stage, AI will have the edge. For the medium term, catalysts will be needed to challenge the prior highs, and tech-led outperformance across the broader market will remain unchanged. The sources of fundamental improvement will be more diverse, incremental capital will be larger, and the market structure will blossom in all directions; opportunities within technology will increase. Non-tech is likely to favor non-financials and non-bank sectors—watch for Alpha in strategic resources, new consumption, and the export/going-overseas chain. Wang Sheng also said that after tech stocks pull back, the overall market is likely to see a synchronized rebound; the A-share market’s earnings resilience is very apparent, and in technology directions driven by domestic substitution that are independently controllable, the future imagination space is huge. (CailianShe) (Source: Eastmoney)
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