Goldman Sachs: Chinese equities show 'rotation signals,' with A-share hard-tech stocks still favored and H-share internet firms seeing earnings recovery.

Goldman Sachs’ latest China strategy maintains its tactical preference for A-shares over H-shares and hard tech over soft tech, but has started paying attention to the recovery potential of large-cap H-share internet stocks following their valuation adjustments. The key to sustained H-share rebounds lies not in valuations but in earnings: losses from internet subsidies and AI-related capital expenditures continue to weigh on profits. China’s AI sector as a whole is not viewed as a bubble, though signs of localized overheating have emerged in semiconductors and certain A-share hard tech segments.

wallstreetcn10:34

Hong Kong Market Snapshot | The three major indices moved mixed, with the Hang Seng Tech Index down 0.96%; most PCB concept and semiconductor stocks declined, with Kingboard Group falling over 19% and GigaDevice dropping more than 15%; auto stocks weakene

Technology and internet stocks were mixed, with SenseTime Group down 5.67% and JD.com up 2.72%; smartphone supply chain stocks weakened, with Kingboard Holdings falling 19.18% and Hua Hong Hongli declining 7.12%; solar and photovoltaic stocks mostly declined, with JinkoSolar Holding down 18.53%, while Times Digital rose 8.64%.

Futu News16:23

Express News | Li Qiang chaired a symposium with experts and entrepreneurs on the economic situation: comprehensive policy measures should be implemented to unlock the potential of domestic demand and accelerate the cultivation of new drivers of consumption.

Breakings19:43

Zhang Yidong’s Latest Insights Following Silicon Valley Research Trip: The AI Era Is Far From Over, and Opportunities Will Radiate Outward from 'Light'

In Zhang Yidong's view, the current Chinese equity market—including the AI-related rally—has undergone sufficient adjustment and is now entering a window for left-side positioning. Going forward, investment opportunities in AI will continue to expand from the 'light'-based computing power segment into a broader range of related fields.

Smart Investor16:34

Hong Kong Market Midday Review | Hong Kong stocks rose sharply before retreating; the Hang Seng Tech Index fell 0.81%. Memory storage, PCB, and optical communication stocks continued to adjust, with CSOP Twox Leveraged SK Hynix dropping over 26%, and KB G

Technology and internet stocks were mixed, with Meituan-W down 2.03% and JD.com-SW up 1.54%; solar photovoltaic stocks weakened, with Junda Shares falling 10.00% and Times Digital rising 6.17%; most automotive stocks declined, with Seres down 11.30% and GAC Group down 6.39%;

Futu News12:14

Futu Morning Brief | U.S.-Iran tensions escalate over the weekend! Strait passage in question; Samsung's Yongin chip plant starts production ahead of schedule; SK Hynix CEO: memory supply will remain tight through 2030; GigaDevice's Hong Kong-listed share

OpenAI, Meta, and SpaceX are competing to develop more cost-efficient AI models; Silicon Valley tech giants are borrowing aggressively, triggering a sell-off in the bond market.

Futu News08:09