Institutions Eye Oversold Sectors with Positive Q3 Earnings Outlook

Last week, China's A-share market rebounded from its lows, with capital flowing into ETFs at a notably faster pace. Combining indicators such as valuation pullbacks, chip clearance and bottoming sentiment, some institutional strategy outlook reports argue that market bottom signals are being released densely. The negative feedback loop in market liquidity seen since late September has eased significantly, and a short-term oversold rebound is supported by both fundamentals and policy. In terms of allocation, institutions recommend a "balanced offense and defense" approach: on the offensive side, focus on oversold sectors with positive third-quarter earnings expectations, clear industry trends and solid fundamentals; on the defensive side, investors can buy dividend assets on dips to weather market volatility. (Shanghai Securities News)