Zhang Yidong: The autumn market will be the spread of the AI bull market, embracing a new logic and two main lines

On August 10, Zhang Yidong, chief economist of Haitong International, issued a document saying that the market turned in August, from defending against "adjustment of the summer cold wind" to laying out the autumn market. Strategically, we can gradually shift to being bullish, and tactically, we must still be down-to-earth. Don't chase up high games and rebound, but look for new logic in differences and select new main lines in differentiation. For the Chinese and U.S. stock markets, new main market trends are emerging, so August is more important than the layout, not the rush to harvest. What is worth seizing in the market is the opportunity for funds to spread from the old logic of early congestion to the new fundamental logic. In particular, the current attractiveness of Hong Kong stocks has already bottomed out before overseas stock markets have bottomed out. For value investors, they can take advantage of market fluctuations and layout against the trend. There is no need to worry about short-term losses, let alone chasing after a rapid rebound. The autumn market will be the spread of the AI bull market, embracing the new application-led AI logic and launching a structural market along two new main lines: First, the TMT market focuses on "differentiation", 1) moving from thematic investment to performance verification, 2)AI industry logic shifts from focusing on AI infrastructure to focusing on AI applications. The second is to spread along the main line of "AI" to the direction of "non-AI technology". The hard-core assets of the non-AI technology industry are "old trees blooming new flowers" and revalued. The benefits of AI empowerment will extend to industries such as pharmaceuticals, especially innovative drugs, non-ferrous metals, securities firms, and offshore chains (power equipment, machinery and equipment, and new chemical materials).