Huatai Securities A-share Strategy: Continue to Seek Value Along Profitability and Growth Trends

36Kr reports that Huatai Securities released an A-share strategy report stating that the market saw increased volume last week, with coal, media, and petroleum & chemical sectors leading gains, while electronics, communications, and mechanical equipment adjusted. Trading activity improved compared to pre-holiday levels; ETF support and policy signals help stabilize expectations, with attention next turning to further expansion in trading volume and profit-making effects. Oversean interest rates remain volatile at high levels, with a roughly 20% probability of rate hikes in October, though expectations for additional hikes within the year remain high, leaving valuation constraints on long-duration assets unresolved. Fundamentally, certain tech sub-sectors still benefit from growth trends and earnings support, while some materials and consumer sub-sectors show marginal improvement; Q3 reports will test the quality of this recovery. In terms of allocation, continue to seek value along profitability and growth trends, balancing tech hardware, select cyclical sectors, and infrastructure chains, while maintaining dividends as a core holding.