In the first half of 2026, the A-share market showed an overall upward trend amid fluctuations. The Shanghai Composite Index rose by 8.3%, the Shenzhen Component Index increased by 11.2%, and the ChiNext Index gained 14.5%. As we move into the third quarter, how will the market evolve? Our investment research team has conducted a thorough analysis.
Macroeconomic Environment
China's economy continues its recovery, with Q2 GDP growing 5.2% year over year and the manufacturing PMI staying above the 50 threshold for three consecutive months. Consumption, investment, and exports are driving growth in tandem, further strengthening the economic fundamentals.
Key Focus Areas
For Q3, we recommend focusing on the following investment themes:
- Artificial Intelligence Industry ChainAccelerating Large Model Deployment: Growing Compute Demand
- New Energy Energy StorageEnergy storage technology breakthroughs accelerate commercial deployment
- Semiconductor EquipmentAcceleration of domestic substitution; continuous rise in equipment localization rate
- Consumption RecoveryWith the summer consumption peak coinciding with policy stimulus, the consumer sector is poised for valuation recovery.
Risk Warning
Investors should monitor potential risks such as global economic slowdowns, geopolitical uncertainty, and market liquidity shifts. We recommend a balanced allocation strategy, position control, and robust risk management.
Recommended Configuration
We recommend a "core-satellite" strategy: allocate the core to high-quality blue-chip and growth leaders, use the satellite portion for selective thematic opportunities, and maintain a moderate-to-high overall position.
