Brokerage Morning Meeting Highlights | Impact of Tariff Increases is Complex, Focus on Two Investment Themes

The market rebounded with volatility yesterday, with the ChiNext leading the gains and the SSE 50 Index rising by over 2%. The total turnover of the Shanghai and Shenzhen markets was 1.63 trillion yuan for the whole day, an increase of 37.8 billion yuan compared to the previous trading day. In terms of sectors, agriculture, pork, retail, and food sectors were among the top gainers, while Apple concept, non-ferrous metals, auto parts, and PCB sectors were among the top losers. By the end of yesterday's trading, the Shanghai Composite Index rose by 1.58%, the Shenzhen Component Index rose by 0.64%, and the ChiNext Index rose by 1.83%. At today's morning meeting of securities firms, Guotai Haitong proposed that the impact of additional tariffs is complex and recommended focusing on two investment themes; Huaxi believes that the equity market is likely to show oversold rebound in the future; CICC suggested focusing on Chinese stocks that are temporarily overallocated in high dividend and policy benefiting targets, with technology stocks showing oversold rebound. Guotai Haitong: Impact of additional tariffs is complex, focus on two investment themes Guotai Haitong stated that recently, the US has extensively imposed "reciprocal tariffs", exceeding expectations in magnitude; subsequently, China/EU/Canada and other countries have imposed retaliatory tariffs against the US to varying degrees. The increase in global trade tariff disputes has raised concerns about shipping export demand and aerospace aircraft material import taxes, and the actual impact in the future still needs to pay attention to tariff policy changes and industry responses. The firm recommends focusing on two investment themes: 1) Downward trend in oil prices: reiterating that aviation and oil shipping have the option of a downward trend in oil prices. 2) Focus on domestic demand: focus on the high-speed highways with confirmed dividends under the theme of domestic demand. Huaxi: Equity market is expected to show oversold rebound in the future Huaxi pointed out that the equity market has experienced a significant correction mainly due to the impact of reciprocal tariff policies. The logic of the rise in "policy + technology" since 924 has not been refuted, and the future market is expected to unfold an oversold rebound, facing big winds, big waves, and big opportunities. In the face of uncertainties such as the impact of tariffs in April and performance announcements, utilities or relatively stable holdings may be considered, while environmental protection, non-bank, food and beverage, and communication sectors can also be appropriately focused on. CICC: Focus on Chinese stocks that are temporarily overallocated in high dividend and policy benefiting targets, and consider oversold rebound in technology stocks CICC stated that under the impact of tariffs, the US may be heading towards recession or stagnation, while China may continue with an M-shaped recovery, and countries with a large trade deficit are facing economic headwinds. The firm recommends overweighting gold and Chinese bonds, underweighting US stocks and commodities, temporarily overallocating Chinese stocks in high dividends and policy benefiting targets, focusing on oversold rebound in technology stocks, with significant changes in US bonds. This article is reprinted from Caishixin, GMT8 editor: Liu Xuan.