Fidelity: Optimistic about China's integrated retail, interactive media, and communication equipment.

Recently, Fidelity published an article stating that Fidelity is committed to seizing opportunities where the value within the value chain is underrated and benefiting from long-term structural trends. As the market begins to expand, Fidelity is also looking for opportunities in various industries and regions. At the regional and industry levels, based on bottom-up stock selection factors, Fidelity is bullish on China's comprehensive retail, interactive media, and communication equipment sectors, more than on the US semiconductor/ semiconductor equipment and technology hardware sectors. The technology industry relies on global trade. Many technology sectors involve cross-border operations. If the United States proposes to implement high tariffs to encourage production reshoring and reduce dependence on overseas supply chains, investors should pay attention to the related impacts. However, given that many technology hardware companies have gradually moved their operations out of China in recent years, the impact of high tariffs should be limited, and companies intending to establish operations in the US may receive exemptions. Investors need to understand that the market's response to events is usually quick, so the volatility after the election results are announced is unlikely to last long. In addition, during times when most investors are confused by market rotations and short-term profit impacts caused by macro factors, such volatile market conditions may also bring some investment opportunities for disciplined and long-term focused investors. Fidelity has always adopted a bottom-up approach, so it will not spend too much time trying to assess the impact of macro or political variables, but instead focus on discovering fundamental factors, risk-return levels, and well-valued companies within the dynamic technology industry.