A shares opening express | Three major indexes collectively open lower, with lithium mining, precious metals, and aerospace equipment sectors leading the decline.

On May 20th, the three major A-share stock indexes collectively opened lower, with the Shanghai Composite Index falling by 0.4% and the ChiNext Index falling by 0.48%. On the market, real estate services, food and beverage, and coal sectors saw the biggest gains, while lithium mining, precious metals, and aerospace equipment sectors saw the biggest losses. Institutional outlook: Founder: The market may be brewing a rebound on the daily level, with a focus on 5 major directions in the future. Founder believes that the recent market divergence is severe, with hotspots concentrated in the high-growth TMT sector, particularly in AI hardware and semiconductor sectors with overseas exposure. Currently, the stocks in these two sectors have seen significant gains, and short-term volatility may intensify. External risks in May cannot be ignored: the impact of oil prices on inflation is evident, the US dollar index is strengthening, and US bond yields are rising, exerting some pressure on risk assets. The earnings season is often a time for thematic activity, and it is expected that the market will mainly consolidate in the short term. It is recommended to buy on dips and focus on medium to low-priced stocks with high earnings prospects, such as energy storage batteries, AI applications, Siasun Robot&Automation, and other low-priced themes. The current market is in a stage of "index setting the stage, individual stocks performing", and investors can focus on the following directions for allocation: 1. Energy storage and solid-state batteries; 2. AI application end; 3. Human-shaped Siasun Robot&Automation; 4. Intelligent driving; 5. Low-altitude economics. Huaxi: After consolidating, there will be a summer offensive market again. Huaxi stated that overseas inflation exceeding expectations has pushed up US and Japanese bond yields and monetary tightening expectations, which have exerted short-term pressure on global risk assets. However, A-share trading activity remains strong, and the short-term adjustment is a healthy consolidation. In this round of global tech market, benefiting from the strong AI and continuous profit realization, profit expectations for the US tech sector have been significantly raised since the beginning of the year. Currently, the valuations of the US and A-share tech indices are still in a reasonable range, indicating that the market has strong intrinsic resilience. After stress testing, funds are expected to further concentrate on high-growth areas. In terms of industry allocation, it is suggested to focus on: 1. High-growth technology growth tracks: computational hardware, new energy, Siasun Robot&Automation, etc.; 2. Upstream resources related to energy autonomy and control: chemical industry, etc. GF SEC: Earnings "vacuum period", switch or hold firm? GF SEC believes that the period from the end of April when annual reports/first quarter reports are disclosed until the mid-year report preview is typical "earnings vacuum period". After the quarterly report window closes, the market loses a short-term fundamental anchor for verification, and the marginal weight of valuation pricing shifts from profit up/down revisions to future expectations (looking for space), industry events (thematicization), and policy catalysts (narrativization). At the same time, the market's macro sensitivity will also increase. In summary, the current trading sentiment in the double innovation sector has entered the overheating zone, and the short-term volatility caused by this does not need to be overly concerned about: 1. After the high sentiment, there is still momentum within a month, transitioning from previous one-way uptrends to oscillating uptrends; 2. The industry trend in technology has not been falsified yet, and trend items are more important than volatility items. Within a healthy range of long-term moving averages, there is still positive expectation after sentiment overheats for 3 months; 3. In 2 months, the mid-year report window will be open (A-shares disclose mid-year report previews by mid-July, while US stocks start disclosing official mid-year reports in mid-July), which is an effective stage for earnings pricing, and technology is likely to continue in the high-growth direction. This article was reprinted from "Tencent Stock Selection", edited by GMTEight: Xu Wenqiang.