CITIC Securities: the game of frequent adjustment of stock funds will continue to dominate the market in June, closely following three main lines

CITIC Securities believes that the game of frequent position adjustment of stock funds will continue to dominate the market in June, the short-term impact of fundamental factors will weaken, and valuation is still the main driving force. It is suggested that we continue to seize the opportunities under the short-term market rotation. First of all, the incremental funds did not enter the market substantially, and the institutional capital inflow was slow. Behind the trillions of transactions, there were more stock funds frequently adjusting positions. The valuation elasticity was played in a short, flat and fast trading style. With the disclosure of the Chinese daily news approaching, the structural game will slow down. Secondly, the short-term impact of fundamental factors on the market is weakening, and a shares are still in a quiet period, still in the valuation driven stage. Finally, we should grasp the short-term market rotation opportunity, short-term trading cycle and theme, and focus on the main line of growth and manufacturing in the medium term: 1) upstream resource products with high performance certainty in the interim report are more favored by capital in the short term; 2) In the short term, the themes of policy catalysis, including Hengqin concept plate and military industry, are also worthy of attention; 3) With the tide of trade driven recession, it is suggested that we should stick to the main line of growth and manufacturing in the medium term and continue to allocate new energy, national defense and security, intelligent manufacturing and other sectors.