ZHANG CHIU DONG: AUTUMN WILL BE A PROLIFERATION OF AI BULL CITY, EMBRACING A NEW LOGIC, TWO MAIN LINES

ON 10 AUGUST, THE CHIEF ECONOMIST OF HAITONG INTERNATIONAL WROTE THAT THE MONTH OF AUGUST HAD TURNED FROM A “SUMMER WINTER ADJUSTMENT” TO A BALCONIAN FALL, THAT IT WOULD BE POSSIBLE TO MOVE STRATEGICALLY TO LOOK AT MORE, THAT THE TACTICS WOULD HAVE TO REMAIN ON THE GROUND, THAT THE GAME WOULD NOT BE PURSUED, AND THAT IN DIFFERENCES, A NEW LOGIC WOULD BE SOUGHT, AND THAT A NEW MAIN LINE WOULD BE CHOSEN IN A DIVIDED FASHION. FOR THE CENTRAL AND AMERICAN STOCK MARKETS, NEW RELATIONSHIPS ARE BEING NURTURED, SO AUGUST IS MORE IMPORTANT IN LAYOUT THAN IN RUSH TO HARVEST. MARKETS CAN GRASP THE OPPORTUNITY FOR THE OLD LOGIC OF FINANCIAL OVERCROWDING IN THE PREVIOUS PERIOD TO SPREAD TO THE NEW FUNDAMENTAL LOGIC. IN PARTICULAR, THE INCREASING ATTRACTIVENESS OF THE CURRENT PORT STOCK ALLOCATION IS ALREADY AHEAD OF THE BOTTOM OF THE OVERSEAS STOCK MARKET. FOR VALUE INVESTORS, MARKET VOLATILITY CAN BE EXPLOITED, AND THERE IS NO NEED TO WORRY ABOUT SHORT-TERM HIKING, MUCH LESS TO CATCH UP WITH A QUICK REBOUND. AUTUMN PERFORMANCE WILL BE A PROLIFERATION OF AI BULLS, EMBRACING THE APPLICATION-LED NEW AI LOGIC, AND WILL BE STRUCTURED ALONG TWO NEW AXES: FIRST, THE TMT LINE FOCUS “DIVISIVE”, 1) MOVING FROM THEMATIC INVESTMENT TO PERFORMANCE VALIDATION, AND (2) THE AI INDUSTRY LOGIC MOVING FROM AN AI INFRASTRUCTURE TO AN AI APPLICATION. THE SECOND IS THE SPREAD OF NON-AI TECHNOLOGY ALONG THE MAIN LINE OF "AI+", WITH HARD NUCLEAR ASSETS IN THE NON-AI TECHNOLOGY INDUSTRY BEING “FROWNING AND REVALUED”. AI-ENABLED BENEFITS WILL EXTEND TO INDUSTRIES SUCH AS PHARMACEUTICALS, ESPECIALLY INNOVATIVE MEDICINES, NON-FERROUS METALS, COUPONS, AND SEA-GOING CHAINS (ELECTRICITY, MECHANICAL EQUIPMENT, NEW CHEMICAL MATERIALS)。