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Why Chinese brokers forecast an A-share tech and chip rebound
As global investors pull money from South Korea, top domestic brokerages expect strong domestic fundamentals to drive fresh buying in China
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Leading Chinese brokerages have expressed optimism for domestic tech shares traded in August, distinguishing them from the sharp sell-off that has rattled South Korean financial markets.
Citic Securities said it believed mainland-traded shares – also known as A shares – had only undergone a correction after investors piled into artificial intelligence-related sectors, rather than suffering the deleveraging shock seen in South Korea.
“The liquidity pressure in some industries remains, but the impact on some noncore AI shares has now largely subsided,” the country’s second-largest brokerage by total assets said in a note.
The comments, published on Sunday, came after global markets experienced a sell-off in semiconductor shares in July, as investors rushed to lock in profits following a strong surge in chip stocks.
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