A-shares are expected to fluctuate and rise in the second half of the year. Institutions suggest focusing on the science and technology innovation main theme supported by industrial trends.

Last week, there was intensive sector rotation in the A-share market. In addition to the continued strength of the banking sector, other sectors showed a volatile trend, and technology stocks, which had been leading in the previous period, have retreated to some extent. In the view of institutions, short-term overseas disturbances have significantly increased, constituting factors that suppress the risk appetite for A shares. However, looking ahead to the second half of the year, with the gradual advancement of a series of capital market reform measures, the overall market activity in 2025 is expected to improve. With policy catalysis, the technology sector, which has industry trend support and good performance in the semi-annual report, is worth paying attention to.