CICC: Still recommend holding low volatility dividend as a core asset.

CICC pointed out that looking ahead, in the short term, the market still faces a lot of uncertainty, but in the medium term, we hold a more positive view on the market for the second half of the year. On the fundamental level, financial data is often a leading indicator for the market, with improvements in indicators such as money supply growth indicating that policies are in action. The recent high-profile meetings once again emphasized "anti-internal competition," showing concern for issues such as weak prices. On the financial side, after 10 months of market volatility, the chip structure has been optimized, and our calculations show that current market levels are significantly higher than the average funding costs of the past 1 and 3 years. The profit effect is improving, and in the current "asset shortage" environment, A-share dividend yields are significantly more attractive compared to long bond yields, providing a strong underlying logic for the market to improve. In terms of allocation, in uncertain environments, it is still recommended to retain low volatility dividend assets as core assets. On the other hand, it is suggested to focus on the combination of economic recovery and industry trends, and pay attention to industries such as AI computing power, innovative pharmaceuticals, and non-ferrous metals.