Signs of global fund reallocation are emerging, Chinese assets may welcome overseas "liquidity"

Industry insiders believe that the weak US non-farm payroll data for July has raised concerns about the US economy entering a recession, coupled with a significant increase in the probability of a Fed rate cut in September, which may trigger a global fund rebalancing, causing US and Japanese stocks to accelerate their loosening of high-level chips. Currently, the Chinese stock market is severely undervalued, considering factors such as valuation, fundamentals, and policies, its attractiveness to global funds is significantly increasing. Morgan Stanley Fund stated that from an industry perspective, it is optimistic about sectors benefiting from the Fed rate cut, such as innovative drugs and gold. Sectors with stable fundamentals and policy support, such as home appliances and utilities, will maintain relatively good returns, while in the medium term, industries such as semiconductors and defense that are expected to see improved business conditions continue to be favored. (Shanghai Securities News)