Huatai Securities' Wang Weiguang: The AI industry narrative is not yet over, and the market will enter a "midfield breather"
Wang Weiguang, Co-Chief Strategist at the Huatai Securities Research Institute, judged at the 2027 Annual Investment Summit that the AI industry narrative is not yet over, but the market will move from broad-based gains into a "midfield breather," with the investment focus shifting from computing power investment to return verification, and attention can be paid to directions such as physical AI, on-device AI, AI applications and power. He expects the net profit attributable to parent companies of all A-share non-financial enterprises to grow by about 5.1% in 2027, and recommends grasping three main lines: improvement in the supply-demand landscape, urban renewal and the construction of the "six networks," and high-quality overseas expansion leaders.
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At the Huatai Securities 2027 Annual Investment Summit, Wang Weiguang, Co-Chief Strategist at the Huatai Securities Research Institute, shared his outlook for the A-share market in 2027. His annual strategy centers on the core judgment of "style rotation in progress," holding that the foundation for the A-share market's medium-term upward trend remains solid, that the overall profitability of all A-share non-financial companies has already passed the bottom inflection point, and that improvements in industry competitive dynamics, companies going global, and gains in operating efficiency will continue to support earnings recovery, with future market gains expected to rely more on improvements in corporate earnings.
Wang Weiguang expects that in 2027 the net profit attributable to parent companies of all A-share non-financial companies will grow by about 5.1%, and that the differing development stages and prosperity rhythms of various industries will bring more structural opportunities, with domestic-demand consumption and pro-cyclical sectors expected to see bottom reversals. In terms of style, large-cap value and low-ROE recovery plays are expected to be relatively favored in the first half; in the second half, if the US dollar weakens and domestic credit and liquidity conditions improve, the small-cap growth style is expected to see a recovery.
Regarding market attention on whether AI can continue as the main theme, Wang Weiguang believes that the AI industry narrative is not yet over, but the market will move from broad-based gains into a "mid-game consolidation," with the investment focus shifting from computing power investment to return verification, and particular attention can be paid to areas such as physical AI, on-device AI, AI applications, and power. On allocation, he recommends grasping three main investment themes: improvement in supply-demand dynamics, urban renewal and the construction of the "six networks," and high-quality leading companies going global.
(Source: 21st Century Business Herald) Middle of the article Embedded advertisement