Guojin Securities' Mou Yiling: The market has entered a high volatility state, suggesting active defense, focusing on dividends and technology upstream.

The two-day Guojin Securities 2026 Mid-term Strategy Conference was held in Shanghai from June 10th to 11th. Guojin Securities Chief Strategist Mou Yiling stated that this round of AI capital expenditures accounts for a rapidly increasing share of global GDP, with real economic support. It is comparable to the market trends of growth cycle stocks in China's urbanization construction after joining the WTO from 2005 to 2007. Currently, funds are focusing on embracing AI hardware. In terms of valuation, there is still room for growth in the global Philadelphia Semiconductor Index, and the valuation expansion of A-share growth stocks has been faster than that of US stocks. Some profit pricing is close to the most optimistic levels of the 2005-2007 cycle stocks, but valuation is not a reason for the market to peak. The market is not yet ready for a switch in fundamentals. However, under the pressure of the AI narrative, global non-US growth is slowing down, and although A-shares are hitting new highs, the proportion of rising individual stocks is continuously decreasing. Mou Yiling believes that the market is currently in a high volatility state similar to early 2007. In terms of allocation, it is recommended to focus on active defense, with a preference for dividends and attention to technology upstream. After the AI suppression factors fade, the mid-term focus should be on industrial metals, general equipment, special equipment, and overseas markets.