Galaxy Securities' Yang Chao: It is expected that the market will return to a multi-strand parallel market in the second half of the year.

Guotai Junan Securities held its annual mid-year strategy report meeting in Shanghai. Yang Chao, chief analyst of Guotai Junan Securities, presented the outlook for the second half of the year. Yang believes that the investment environment will improve in the second half of the year, with oil prices declining and the market expected to return to a multi-theme trend. In terms of investment style, the balance between small and medium-cap stocks is likely to tilt towards large and medium-cap leading stocks; growth stocks are more likely to outperform, with performance support combined with ongoing policy implementation, and resources are tilting towards growth tracks such as technology and high-end manufacturing. In terms of structural layout, there are three main focus areas: first, AI infrastructure, where overseas AI capital expenditure expansion resonates with domestic new infrastructure, accelerating the construction of underlying facilities such as computing power, communication, and electricity, and the industrial chain prosperity is expected to continue. Second, cycles and manufacturing, where input-driven inflation raises price levels, combined with the repair of new infrastructure and manufacturing demand going global, some resource and cyclical manufacturing sectors are expected to see recovery. Third, dividend sectors with expectations of improved performance and stable and sustainable dividends.