Huatai Securities: Long-term funds' attention to low-priced domestic demand products in the second quarter is starting to rise.

Huatai Securities research report indicates that in the second quarter of 2025, long-term funds will continue to follow a high dividend strategy in their basic asset allocation strategy, with a holding structure adjustment showing the characteristic of "technology as the spear, consumption as the shield": 1) High dividends are still the main basis for stable income for long-term funds, but funds are shifting from high to low within the dividend, with insurers, sovereign wealth funds taking profits in the second quarter of 2025 and crowding into the banking sector; 2) Funds are increasing their holdings in technology sectors with strong industrial trends to enhance portfolio returns elasticity, with insurers and sovereign wealth funds increasing their holdings in TMT and defense-related ETFs in the second quarter, while QFII focusing on increasing positions in AI and other specific sectors; 3) In addition, long-term funds are starting to pay more attention to low-value domestic demand varieties with low expectation betting, with sovereign wealth funds investing in liquor varieties and insurers and social security funds increasing their holdings in mass consumption goods.