CSC Financial says Q3 market direction will be driven by: fundamentals — AI
compute demand remains highly cyclical; company earnings and overseas results
are key, and policy actions from the July Politburo meeting matter given macro
pressure since April. Liquidity — external shocks have risen while domestic
liquidity is neutral. Risk appetite — geopolitical events and major tech
listings can produce short-term volatility; monitor compute trends in Japan,
Korea and the US due to global tech linkage. Sector view — AI compute’s bull
case intact but volatility has increased; advise against chasing rallies,
accumulate on dips. Lithium batteries should enter seasonal strength, energy
storage demand is warming, and renewables may see valuation repair. Dividend
plays look poised for oversold rebounds. Focus: banks, coal, utilities, AI,
optical modules, storage, chips, industrial metals, lithium battery materials
(VC).
