Financial Associated Press, May 27 - Yesterday, the market rebounded after hitting a low, with the ChiNext Index and the Shenzhen Component Index turning positive one after another. The trading volume of the Shanghai and Shenzhen stock markets reached 3.24 trillion yuan. In terms of sectors, concepts such as PCB, electricity, non-ferrous metals, robotics, and advanced packaging performed actively. On the downside, concepts like computing power leasing and storage chips showed signs of weakness. By the close, the Shanghai Composite Index fell by 0.17%, the Shenzhen Component Index rose by 0.12%, and the ChiNext Index increased by 0.54%.

In today's brokerage morning meeting, Huatai Securities noted signs of a certain rebound in allocation-type funds; CITIC Construction Investment believed that domestic and foreign demand for construction machinery was strong, making it a good time for layout; CITIC Securities suggested allocating a new barbell structure of AI + energy and chemicals.

Huatai Securities: Signs of a certain rebound in allocation-type funds

There are signs of a certain rebound in domestic and foreign allocation-type funds: 1) High-frequency calculations of fund positions show that active equity funds reduced their positions in TMT at the beginning of May, but since mid-May, funds have slightly increased their positions in TMT again, showing signs of a certain rebound; 2) Net inflows of allocation-type foreign capital rose to 9.31 billion yuan, of which passive allocation-type foreign capital had a net inflow of 9.75 billion yuan, while active allocation-type foreign capital only slightly outflowed 440 million yuan. The marginal improvement of foreign capital is clear, but the dominant force still comes from passive funds, and active funds have not yet turned; 3) The net redemption of equity ETFs narrowed month-on-month but still remained at the central position since the rise in May, being the main outflow item in terms of funds.

CITIC Construction Investment: Strong performance of domestic and foreign demand for construction machinery, making it a good time for layout

On May 1, Sany Heavy Industry issued a "Customer Notice," clearly stating that starting from May 15, the prices of excavator products would be increased by 5%. On May 8, XCMG Excavators issued a notice regarding the price adjustment of XCMG excavator products, announcing a price increase of 3-5 percentage points for different models starting from June 1. On May 8, LIUGONG issued a notice regarding the price adjustment of LIUGONG excavator products, announcing a price increase of 5% starting from May 20, 2026. The reasons given for the price increases by the three companies were due to rising raw material prices, with an increase of about 5%, reflecting a slowdown in the industry price war since the beginning of the year, shifting towards healthy development. After exceeding expectations in excavator sales in March, both domestic and foreign sales continued to exceed expectations in April. In April, various types of excavators sold reached 28,745 units, a year-on-year increase of 29.8%. Among them, domestic sales were 16,920 units, a year-on-year increase of 34.9%; exports were 11,825 units, a year-on-year increase of 23.2%. Domestic growth has accelerated, and exports have maintained a high growth rate. This year, domestic excavator sales have shown a noticeable shift in peak season, as the Spring Festival was later this year compared to last year. Since March, domestic excavators have resumed a high year-on-year positive growth, and it is expected that growth will continue. Exports have maintained strong performance and have not been disturbed by international situations, tariff changes, or interest rate cuts; the high growth trend of China's construction machinery remains intact.

CITIC Securities: Suggest allocating a new barbell structure of AI + energy and chemicals Looking ahead to the second half of the year, we should continue to view China from a global perspective, replace bull-bear thinking with K-shaped thinking to analyze the market, and shift from "building AI" to "adapting to AI" in our understanding of technology. These are three underlying frameworks for responding to market fluctuations; the new barbell structure of AI+ is the allocation strategy. From the perspective of A-share corporate earnings, aside from industrial factors, the two most significant influences are the continuous appreciation trend of the RMB exchange rate and the scissor difference between CPI and PPI during the inflation rebound process, with one affecting the profit realization of external demand and the other impacting the smooth transmission of prices in internal demand. From the perspective of market liquidity, in the AI era, broader public participation in the capital market is an inevitable trend, but the costs of missing opportunities and making mistakes are rising, which means that both aggressive and conservative funds coexist and grow simultaneously, and the barbell structure will persist in the long term.

(Financial Associated Press)