Shanghai Silver Fund: Market correction does not change the medium-term upward trend; focus on three major opportunities: AI, domestic innovation going overseas, and more

Xinhua Finance Shanghai, February 3rd (Reporter Wei Yutian) — Recently, the A-share market has experienced continuous fluctuations, with sectors showing significant differentiation. Shanghai Silver Fund believes that the medium-term upward trend of the A-share market has not fundamentally changed. The core logic supporting this judgment includes three aspects: First, the global “asset scarcity” backdrop continues, coupled with frequent geopolitical conflicts worldwide, and the long-term trend of “patient capital” flowing into the stock market remains unchanged; second, domestic policies to “counteract involution” are being steadily advanced, with improving corporate profitability expectations gradually heating up, providing a support for the capital market; third, the current sector’s rapid adjustment is more a reaction to short-term market sentiment and trading levels, and has not shaken the medium- to long-term upward trend.

Regarding medium- to long-term investment opportunities, Shanghai Silver Fund indicates that three types of opportunities can be focused on: First, AI-related industries. Under the policy guidance of technological independence and controllability, domestic support policies for the AI industry chain continue to be implemented, and it is expected that global capital expenditure in the computing power sector will further expand, with AI edge device penetration steadily increasing. Future investment opportunities include domestically produced computing power chains, AI + gaming, and other areas. Second, the enhancement of Chinese brand competitiveness. Chinese manufacturing brands have evolved from “cheap goods” to “high-quality, affordable, and profit-stable,” and have achieved “leapfrog development” in multiple fields. Among them, the outbound sectors of domestic brands, especially in innovative drugs, electrical equipment, engineering machinery, and other segments, have achieved overtaking or continuous increase in independent market share, which warrants close attention. Third, resource commodities. Copper, minor metals, and other resource commodities possess genuine scarcity and anti-inflation properties, and are easy to form stable supply alliances. Related assets have stable cash flows and highlight long-term allocation value.

“Industries such as non-ferrous metals have experienced significant gains and high congestion earlier, and currently require some time for adjustment and digestion,” Shanghai Silver Fund believes. The recent adjustment in this sector is more driven by trading factors rather than fundamentals. Coupled with the actual impact expected after the new Federal Reserve Chair takes office being better than market pessimistic expectations, the sector may present more attractive buying opportunities after the adjustment.