Anxin strategy: this year's report and the second half of A-share fundamentals are more likely to be better than market expectations

The strategy team of Anson Securities believes that after entering June, the yield of domestic bond market has obviously rebounded, which restricts the short-term performance of a shares. The tight Interbank Funding at the end of June may also have a short-term impact on the market. At the same time, the history of five major meetings or celebrations in the past decade shows that there may be short-term fluctuations in market risk appetite in the first two to three weeks of major events and the second to three weeks after major events. In the medium and long term, this year's midterm report and the second half of the year's A-share fundamentals are more likely to be better than market expectations. Under the background of the significant dove of the Federal Reserve and the completion of domestic economic recovery, the upward space of domestic bond market yield is limited, the liquidity environment and risk preference factors are still favorable support as a whole, and the profitability and growth of enterprises will become the core logic of the market in the next stage. In terms of industry allocation, we can continue to hold the varieties with profit growth exceeding expectations in the core track, and the companies with reasonable valuation reporting exceeding expectations, focus on the emerging new main line in non core assets, and excavate the neglected opportunities in the process of economic recovery and transformation from bottom to top. There are three main directions to focus on 1) New growth track: artificial intelligence, intelligent cars, new materials, military industry, Xinchuang Wangan, etc; 2) The core track can continue to exceed the expected varieties: some semiconductor, photovoltaic, pharmaceutical companies; 3) Under the recovery, the China Daily News exceeded the expected industries: coal, chemical industry, banking, etc.