Key Points from Brokerage Morning Meetings: Lujiazui Forum Expected to Drive Capital Market Reforms, Three Main Themes May Benefit

The market bottomed out and rebounded yesterday, with the three major indices rising slightly. The total trading volume on the Shanghai and Shenzhen stock exchanges was RMB 1.19 trillion for the whole day, a decrease of RMB 16.1 billion from the previous trading day. In terms of sectors, PCB, CPO, military equipment, AI glasses, and other sectors led the gains, while beauty care, glyphosate, rare earth permanent magnets, brain-computer interfaces, and other sectors led the losses. As of yesterday's close, the Shanghai Composite Index rose by 0.04%, the Shenzhen Component Index rose by 0.24%, and the ChiNext Index rose by 0.23%.

At today's morning meeting of securities firms, Huatai Securities believed that the Lujiazui Forum is expected to drive capital market reforms, with three main lines potentially benefiting; CICC stated that the US Fed will not act rashly in the face of inflation; China Securities proposed that the future of IP-driven new consumption is promising, and AI applications are just beginning to spark.

Huatai Securities: Lujiazui Forum Expected to Drive Capital Market Reforms, Three Main Lines May Benefit

Huatai Securities stated that the Lujiazui Financial Forum was held in Shanghai from June 18-19. On the 18th, People's Bank of China Governor Pan Gongsheng announced eight financial opening-up measures, and CSRC Chairman Wu Qing and others delivered important speeches. Huatai Securities believes that the forum is expected to drive capital market reforms and development, providing a favorable environment for the medium and long-term improvement of the equity market. It suggests focusing on three key areas: 1) Building Shanghai into a financial center, establishing a Shanghai-Hong Kong linkage mechanism, and leveraging synergies; 2) Setting up an international digital RMB operations center, with digital currency and cross-border payments potentially accelerating the internationalization of the RMB; 3) Deepening reforms of the Science and Technology Innovation Board and ChiNext through multiple measures to support high-quality financial services for development. In terms of allocation, the finance sector, digital economy/payments, and science and technology innovation may benefit, with a medium and long-term focus on core assets represented by A50, consumption, and finance.

CICC: The US Fed Will Not Act Rashly in the Face of Inflation

CICC stated that the US Fed held steady at its June meeting, in line with market expectations. Officials believed that policy uncertainty had decreased but still lowered growth forecasts and raised their assessments of the inflation path. The dot plot retained the forecast of two interest rate cuts this year, but with a marginal shift towards a "hawkish" stance in the details, reflecting cautious views within the US Fed. Powell remained cautious about inflation risks and stated that no one had strong confidence in the interest rate path they had written down. CICC believes that the US Fed has no intention of rushing to cut interest rates and that policymakers will not act rashly in the face of inflation as long as the economy can wait. CICC maintains its previous view that the US Fed's next interest rate cut may occur in Q4.

China Securities: The Future of IP-Driven New Consumption Is Promising, AI Applications Are Just Beginning to Spark

China Securities stated that 1) The future of IP-driven new consumption is promising: small sentiments, big opportunities. New consumption driven by content continues to thrive. China Securities believes that new consumption in a broad sense meets three conditions: fulfilling immediate emotional value, high-frequency and multiple consumption, and rapid growth in the sector. Therefore, from offline trendy toys and performances to online games and music, all are potential new consumption sectors with promising long-term growth prospects. 2. The AI application sector is showing early signs of growth, with AI Agent and multimodal advancements leading the way. As reasoning models, led by DeepSeek, accelerate their iterations, this year marks the first year of implementation for Agent and AI video.