CITIC: the main market for valuation and repair is still in its infancy.

The rapid repair of the domestic economy and the obvious relief of external pressure have jointly promoted the recovery of investor confidence, active private placement, the adjustment of public funds, and the continuous inflow of foreign capital have brought incremental capital relay, which is still in the early stage of valuation and repair of the main market. it is expected that the four main lines of repair will be more balanced at the beginning of the reporting season.

First of all, investor confidence is recovering rapidly, the progress of economic repair is faster than expected, epidemic prevention and control and economic development are further coordinated, the global trade environment is gradually improving under inflationary pressure, and the cost pressure on the manufacturing industry is gradually alleviating.

Second, incremental funds began to form a relay effect. Private placement, which has been fully reduced in the market adjustment in May, has become the main body of active position increase and marginal pricing. The flow of public offerings from stable growth varieties to illiquid growth sectors has led to a sharp rise in the latter in a short period of time, and foreign capital has resumed sustained inflows after the domestic local epidemic has eased and the platform economic policy has become clearer.

Finally, from the stage of the mid-term repair market, which lasted for several months, the market has just passed the pessimistic calm stage. June to the mid-reporting season is the main market stage of valuation repair, and the current main line of work and production is the first to be repaired. It is expected that the four main lines of repair will be relatively balanced at the beginning of the reporting season.

In terms of configuration, it is suggested that we should adhere to the four main lines of balanced distribution of modern infrastructure, real estate, resumption of work and production and consumption restoration.

CSC FINANCIAL CO.,LTD: the market has entered a new concussion pattern, and the low position can be arranged.

From the perspective of the external environment, we believe that the market is about to enter a new shock pattern from the upward stage of repairing the "golden pit" proposed by us at the end of April: the revision of short-term economic repair progress expectations and the strengthening of US stagflation expectations have all suppressed the further uptrend of A-shares.

Of course, these factors are not completely unexpected new impact factors, at present, the market does not have the conditions to return to the bottom of the "gold pit".

Therefore, investors can consider based on the tone of the concussion city pattern, should not easily chase high, low can be layout, focus on growth stocks determined by performance growth and some of the resources and consumer goods with the ability to raise prices. Focus on: military industry, photovoltaic, automotive, lithium, coal, agriculture, food and beverage, securities firms and so on.

Guotai Junan Securities: the upward space of the index is expected to be further opened, and the callback will be selected for growth.

In the past two weeks, with the unsealing of many places, investors' expectations for the economy have significantly improved, risk assessment has declined, and risk appetite has rebounded at the bottom. We have revised upward an operating range for the Shanghai Composite Index and are optimistic about the growth direction of high profit growth. The economy is expected to improve, and the upside of the index is expected to open further.

Callback on car selection growth, investment style from the emphasis on performance certainty to demand to improve the flexibility of the profit-making high-growth sector.From January to April, due to the impact of various risk expectations, investors were in a state of panic, showing that the high-performance deterministic sectors within the stock market (dividend strategy, stable growth plate) significantly outperformed other sectors.

However, in the early stage of the market decline, investors have fully expected the downward pressure on the economy and profits, as well as the visible risk factors. With the gradual control of the national epidemic, the rationalization of epidemic prevention and control policies and the gradual recovery of the economy, we believe that investors' attention to the pursuit of single performance certainty has declined, and the measures, pace and intensity of steady growth are expected to be the same. Implying a reduction in excess returns in the stable growth sector.

On the contrary, in the process that economic growth has bottomed out and economic expectations have been revised up, but the recovery of the real economy is still slow, it benefits from policy support and marginal improvement in demand. in particular, the growth sector with greater demand elasticity brought about by the incremental economy will have better profitability and stock price elasticity.

China International Capital Corporation: the market continues to repair, focusing on "stability"

The short-term A-share market may still be expected to repair in volatility, but throughout the second half of the year, under the influence of internal and external uncertainties, the market path may not rise unilaterally, and the space for absolute returns in the market depends on whether China can achieve sustained stabilization and improvement in fundamentals as soon as possible. Structurally, we propose to give priority to "stability" in the second half of the year.

Recently, the growth style has been widely concerned by the market, and we believe that in the context of loose liquidity, some of the growth with large declines, gradual matching of valuations and profits, and high prosperity can be structurally laid out and repaired in stages, while the opportunity for strategic style to switch to growth needs to pay attention to the progress of overseas inflation and steady growth in China.

The current focus is on three directions:

1) areas where "steady growth" may have policy support: infrastructure (traditional infrastructure and some new infrastructure), building materials, automobile and housing-related industries have policy expectations or actual policy support

2) areas with low valuations and relatively low correlation with macro fluctuations, especially in some areas with high dividends, such as infrastructure, electricity and utilities, hydropower, etc.

3) some areas where fundamentals are bottoming out, supply is limited or the economy continues to improve: agriculture, some non-ferrous and some chemical sub-industries, coal, and photovoltaic and military industries.

Societe Generale Securities: cherish the deployment period of the "New half Army" under the overseas turbulence

Structurally, short-term focus on the dilemma reversal of big consumption (alcohol, duty-free, aviation, scenic spots and hotels) + the direction of continued prosperity in the "new half army" (photovoltaic modules / silicon wafers, automobiles, new military materials / structures, wind power units / upstream materials, semiconductor materials / equipment, 5G optical fiber cables).

In the medium to long term, the market style is expected to gradually return to technological growth. It is suggested that we should focus on the six directions of "specialization and innovation":

1) New energy (new energy vehicles, photovoltaic, wind power, UHV, etc.)

2) New generation information and communication technologies (artificial intelligence, big data, cloud computing, 5G, etc.)

3) High-end manufacturing (intelligent CNC machine tools, robots, advanced rail equipment, etc.)

4) Biomedicine (innovative drugs, CXO, medical devices and diagnostic equipment, etc.)

5) military industry (missile equipment, military electronic components, space station, space shuttle, etc.)

6) Food security (seed industry, biotechnology, chemical fertilizer, etc.).

China Merchants: a shares will still keep the upward trend of concussion, and adjust "without fear".

In May, social finance exceeded expectations, the current domestic liquidity is abundant, economic recovery expectations are relatively certain, coupled with higher-than-expected exports, the domestic situation continues to improve; global inflationary pressure increases, the monetary policy of the European Union and the United States may be tighter, and global stock markets tumble simultaneously. In this case, A shares have obvious "self-oriented" characteristics in the near future, and may even become a risk aversion market for global capital.

We believe that although overseas fluctuations may disturb A shares, due to the improvement of domestic factors, A shares will still maintain the upward trend of concussion and adjust without fear. Pay attention to the traditional periodic products, new infrastructure and partial consumption of the new construction and construction acceleration beneficiary sectors and the main line of post-epidemic economic activity recovery.

Anxin Securities: gradually out of the slump thinking, Longyue appeared in the abyss in the second quarter.

Although the current market trading sentiment has improved significantly, the positive signal of large inflows at the incremental capital level is not clear. For the market, it can be more clear that most investors gradually out of the plunge thinking, into the shock thinking after the slump, of course, the reversal still needs to wait for a more clear signal on the right. We have always believed that the inflection point of profit expectation of domestic fundamentals is the primary core signal of market reversal. For external factors, US stocks continue to tighten trading, A shares are expected to maintain "internal-oriented", the negative impact will be significantly weaker than before.

For the current four main lines of "steady growth, high prosperity, post-epidemic recovery, and global inflation", we suggest that the heart should be bright, and that the interpretation of the future market will still follow the transaction logic of "steady growth and a turn for the better".

It should be reminded that with the promotion of stable growth policies, boosting consumption, especially durable goods, such as cars, will become an important measure to stabilize growth. Industry configuration suggestions: automobile, regional bank, photovoltaic, military industry, coal, catering, chemical industry, infrastructure and so on.

GF Securities Co., LTD.: value first, strategically optimistic about small-cap growth stocks

A shares are neither humble nor arrogant, value comes first, and the strategy is optimistic about small-cap growth stocks. We have been reminding China since early May that the pessimistic moment of China's policy economy is over, with the US CPI hitting a 40-year high in May and European and American markets returning to "tightening" trading. We judge that the "bottom of domestic policy" has been consolidated, while the "bottom of overseas policy" still needs to wait, suggest neither humble nor arrogant, value first, strategically optimistic about small-cap growth stocks, and use the "comparative framework of the three major industries of the Guangdong Development Strategy." tap the structural highlights of the current market and recommend:

(1) "old-fashioned" steady growth & inflation benefit chain (real estate / consumer building materials / coal)

(2) wide credit: small-cap growth stocks such as semiconductor equipment that benefit from the gradual improvement of the credit environment of private enterprises, as well as economic-catalyzed oil and gas / new energy structural opportunities under the "energy security" strategy, such as photovoltaic cell modules, etc.

(3) the clue of "post-epidemic recovery": looking for supply and demand repair areas of manufacturing / export / consumer services, such as automobiles (including new energy vehicles) / trade and retail / medical beauty, etc.

Huaan Securities: both external inflation and internal epidemic are repeated, and the continuous increase in short-term risk appetite is restrained.

In the second week of June, although the market continued to rebound, there were obvious differences in rhythm and industry performance, with coal, petroleum and petrochemical upstream varieties performing better than growing varieties. Subsequently, the epidemic in Beijing repeated, the United States CPI rose again in May, and US stocks adjusted sharply, which may restrain the continuous improvement of A-share risk appetite in the short term. It is suggested that the consumption margin repair flexible food and beverage, stable growth of building materials, iron and steel and other two main line configuration, growth has rebounded strongly so far, differences have intensified, the medium-and long-term allocation value remains unchanged, but short-term recommendations are appropriate to avoid.

Yue Kai Securities: a shares are expected to continue to walk out of the independent market.

Marginal relaxation of external disturbances, resumption of work and production speed up after the epidemic, production and operation gradually return to normal, market sentiment has been greatly improved, superimposed northward capital continues to return, follow-up A-shares are expected to continue to come out of the independent market. Combined with our analysis of micro-profits, we can measure the prosperity of the industry through the two dimensions of expected improvement in profitability and continuous upward revision of expected earnings growth in the near future. It is recommended to pay attention to:

1) opportunities for post-epidemic repair: first, with the improvement of consumer demand, with the gradual decline of the impact of the epidemic, the local governments' measures to promote consumption have been effective, and the consumer demand of residents will be restored. Historical review shows that the profitability of the middle and lower reaches after the bottom of profits has improved obviously, focusing on the sub-areas where the performance is expected to be realized in the major consumer sectors, such as commerce and retail, food and beverages, cars, social services and so on. Second, the full resumption of work and production to speed up, external conflicts continue to disturb the commodity market, prices continue to operate at high levels, resumption of production is expected to gradually advance, upstream resource products are expected to maintain a high demeanor.

2) grasp the main line of steady growth: recent policies and financing tools to promote infrastructure investment continue to increase, under the current economic pressure, the importance of strengthening infrastructure is further enhanced, superimposing US tariff exemption for photovoltaic products is good, combined with the recent consensus forecast of continuous upward profit growth in industries, public utilities, machinery and equipment, power equipment and other new and old infrastructure-related sectors are expected to continue to benefit.