Zhitong Finance APP was informed that in July 1 1 day, the three major A-share indexes fluctuated downwards, and the Shenzhen Stock Exchange Index and the Growth Enterprise Market Index both fell more than 2% in early trading. In the afternoon, the index continued to slump, and the Shanghai Composite Index once fell below 3,300 points. Pharmaceutical business, COVID-19 therapy, traditional Chinese medicine and other pharmaceutical-related sectors rose strongly, but the fiery new energy industry chain in the early stage was greatly adjusted, and the sharp drop of lithium mining stocks triggered the collective adjustment of tracking stocks. Generally speaking, the market sentiment is relatively low and the effect of making money is weak. Where are the investment opportunities in the second half of the year in the face of domestic and international economic shocks and repeated epidemics? What direction do fund managers like? Is the new energy track worth raising?

Baoying Fund said that financial report and price were the core factors of A-share operation in July. In the second quarter, the domestic economy was disturbed by the epidemic, and the profits of A-share enterprises as a whole will drop sharply, and the performance of interim reports in many industries will be under pressure. Although the market has expectations for the downward trend of A-share earnings, it has rebounded to the present stage and the market risk premium has dropped a lot. The overall valuation of A-shares has returned to the middle of the past decade, and the valuation of some industries is at a historical high. In the follow-up, it is still necessary to consider the risk that some enterprises' profits will fall beyond expectations.

Follow-up focuses on the development of Shanghai epidemic situation, the trend of pig price and the disclosure of enterprise interim report. Under the premise that the epidemic situation is effectively controlled and there is no longer a large-scale recurrence like that in March-May this year, A-share operation has a bottom.

Jing Wong, assistant general manager of China Merchants Fund and director of the First Investment Management Department, said that the influence of the "steady growth" policy has gradually faded, and the most pessimistic moment of fundamental expectations has passed. Looking forward to the second half of the year, economic expectations will be revised upwards, risk appetite and risk evaluation will change positively, the market's judgment on A shares will turn to optimism, and the correction of the operating range of the Shanghai Composite Index will be a good opportunity to increase positions.

Jing Wong further stated that from the dividend discount model, the profitability of A-shares on the profit side will gradually improve in the second half of the year, and the upward adjustment of earnings expectations will be the active support of the market; The "steady growth" policy continued to increase and the epidemic prevention and control showed positive changes, and risk preference and risk assessment were also driven; Risk-free interest rate has downward space, but the range is relatively limited, which is not the core driver of the next stage of the market. With the gradual elimination of market negative factors, marginal improvement may bring better investment layout opportunities to areas with strong medium and long-term growth momentum, including new infrastructure, technological innovation, advanced manufacturing and other industries.

Jing Wong called for marginal improvement in the factors affecting the market in the near future, and more concrete measures to promote stable economic growth will be gradually implemented. In the future, corporate profits may be expected to be restored, accompanied by the recovery of market sentiment. Investors should have more confidence in the medium and long-term performance of the A-share and Hong Kong stock markets.

Ping An Fund: Optimistic about opportunities for reshaping new energy.

Ping An Fund said that with the gradual control of the epidemic in May and June, the affected cities began to resume work and production. From the microscopic data, we can see that the economy has picked up, such as the rebound of PMI in June and the improvement of automobile and real estate data. Although the data of Zhou Du in the first week of July is not satisfactory from the ring-on-ring data, it is undeniable that the economy is still in the trend of recovery. Of course, the market rebounded obviously in the last two months of the second quarter.

From the perspective of the sector, Ping An Fund is still optimistic about the opportunities of intelligent vehicles driven by new energy vehicles and reshaping the supply chain, the opportunities of technological manufacturing under the wave of digital development, the opportunities of industrial chain brought by energy reform, and the opportunities brought by consumption recovery in the post-epidemic era. If it is due to regular quarterly reports or late liquidity adjustment, it may be the second long-term layout opportunity after the first quarter.