External disturbances eased, A-shares rose across the board. Institutions suggest to focus on rebalancing as the core of their layout.

With important changes in the Middle East geopolitical conflict, on June 15, the A-share market saw a general uptrend, with most of the 31 Shenwan first-level industries closing higher. The previous trend of differentiation in the technology sector has now converged. According to recent institutional research on listed companies, there has been a significant increase in attention towards non-technology sectors. Companies in cyclical style sectors such as machinery and equipment, basic chemicals, and power equipment have been intensively researched since June. In the view of industry insiders, the market style rebalancing has already begun, and it is recommended to focus on short-term rebalancing in terms of allocation. Meanwhile, it is important to pay attention to sub-sectors with stronger fundamental certainty in the prosperous industry track, such as resources, non-bank financials, and new energy sectors. As for gold, which has been experiencing continuous adjustments this year, its spot price may maintain a weak and fluctuating trend in the short-term. However, considering the continued global high-debt environment and the trend of diversification of foreign exchange reserves, it is advised to allocate a certain proportion of gold-related assets in major asset classes for the long term.