Guotai Junan Securities: Maintained tactical overweight view on A-shares and US stocks in August.

Guotai Junan Securities released a research report stating that in August, they maintain a tactical overweight view on A-shares and US stocks. Recently, market risk appetite has continued to dominate the pricing of major asset classes, with risk assets significantly outperforming safe-haven assets, with equities > commodities > bonds. They are highly optimistic about A-shares due to the continuous upward revision of economic growth expectations, strong support from the government for the development of the capital market, stable market liquidity, improving risk appetite, and solid micro trading structure. They are relatively optimistic about US stocks as it is difficult to confirm a short-term economic recession and the probability of interest rate cuts is increasing.