Dahua Jixian released a research report stating that the MSCI China Index rose 0.8% in August, compared to a 3.7% increase in the Hang Seng Index, due to the former being dragged down by weak performance in utilities, materials, and consumer goods.

Looking ahead, the bank believes that the market has already reflected the expectation of a rate cut by the Federal Reserve in September and does not expect outstanding performance in interest rate-sensitive industries. The bank has included AIA Group (01299.HK), China Overseas Land & Investment (00688.HK), Galaxy Entertainment Group (00027.HK), Meituan Dianping (03690.HK), Ping An Insurance (02318.HK), United Laboratories International Holdings (03933.HK), and Huizhou Desay SV Automotive (002920.SZ) in its "buy" list. On the other hand, due to intense competition, the bank maintains a cautious stance on the electric vehicle industry and has given an "outperform" rating to Ideal Group (02015.HK), believing that the group is facing profit pressures that pose obstacles to profitability.