Meng Lei, a Chinese stock strategy analyst at UBS Securities, said that the global capital market has experienced sharp fluctuations recently. After the trade congestion in the technology sector was released, the technology sector and AI were still the main market lines in the second half of the year. The technology sector is expected to maintain strong profit growth, benefiting from the rapid development of global artificial intelligence and strong domestic policy support. Various types of capital, including industry-themed ETFs, technology track-based active public offering, financing, and private equity, are expected to continue to flow into the technology sector in a net manner. In response to the need to rebalance portfolios, Meng Lei suggested that in the second half of 2026, in addition to AI as the main line, there are three topics worth paying attention to. The first is related derivative sectors related to AI capital expenditure and which are expected to benefit from AI capital spillover in the narrow sense, including data centers, power equipment, physical AI, and commercial aerospace. The second is the profit recovery sector. While the market's attention is focused on AI topics, many sectors are also experiencing profit recovery, including lithium batteries, chemicals, brokerage, insurance, and innovative drugs. If the AI theme continues to loosen, some funds chasing marginal profit growth may choose to switch. The third is the overseas business sector. Companies whose share of overseas revenue is constantly increasing, and the profit margin of overseas business is significantly higher than that of domestic business, is worth paying attention to.

Meng Lei, a Chinese stock strategy analyst at UBS Securities, said that the global capital market has experienced sharp fluctuations recently. After the trade congestion in the technology sector was released, the technology sector and AI were still the main market lines in the second half of the year. The technology sector is expected to maintain strong profit growth, benefiting from the rapid development of global artificial intelligence and strong domestic policy support. Various types of capital, including industry-themed ETFs, technology track-based active public offering, financing, and private equity, are expected to continue to flow into the technology sector in a net manner. In response to the need to rebalance portfolios, Meng Lei suggested that in the second half of 2026, in addition to AI as the main line, there are three topics worth paying attention to. The first is related derivative sectors related to AI capital expenditure and which are expected to benefit from AI capital spillover in the narrow sense, including data centers, power equipment, physical AI, and commercial aerospace. The second is the profit recovery sector. While the market's attention is focused on AI topics, many sectors are also experiencing profit recovery, including lithium batteries, chemicals, brokerage, insurance, and innovative drugs. If the AI theme continues to loosen, some funds chasing marginal profit growth may choose to switch. The third is the overseas business sector. Companies whose share of overseas revenue is constantly increasing, and the profit margin of overseas business is significantly higher than that of domestic business, is worth paying attention to.