Peripheral disturbances are unlikely to easily shake the market’s medium-term upward foundation. Institutions suggest positioning for industry trends moving upward by buying on dips.

Ask AI · Why doesn’t volatility in overseas markets affect A-shares’ medium-term uptrend?

[Overseas disruptions are hard to shake the market’s medium-term upward foundation; institutions recommend building positions on dips in industries that follow the upward industry trend] Caixin Media April 7—A-shares saw their first trading day after the Qingming Festival holiday. During the holiday, overseas markets such as Japan and South Korea rose amid volatility. International oil and gold prices moved in different directions, and market risk appetite improved slightly. Against the backdrop of the continued geopolitical conflict in the Middle East and ongoing uncertainty in international oil price trends, how the A-share market will unfold next is drawing close attention. Industry insiders believe that in the short term, uncertainty surrounding the conflict between the U.S. and Iran—often referred to as the “U.S.-Iran conflict” — continues to suppress market risk appetite, but it has not undermined the long-term upward foundation of A-shares. With a series of positive signals gradually becoming more apparent, the market is expected to continue moving higher in the second quarter. For future allocation, in the near term, it is recommended to continue building positions on dips in industries that benefit from policy support and are moving along an upward industry trend. The growth direction remains the strongest main theme of this round of market activity. Sub-sectors such as AI computing power, semiconductors, memory/storage, and innovative drugs are worth watching. (Securities Times)