The three major A-share indices opened with mixed performances: the Shanghai Composite Index fell 0.03%, while the ChiNext Index rose 0.48%. In the market, sectors such as AI PC and power showed active performance. Conversely, sectors like baijiu, duty-free shops, and real estate were among the decliners.

**Institutional Views on the Market Outlook:**

**Shenwan Hongyuan Securities:** In the short term, the market is still leaning towards an oversold rebound. It is recommended to continue focusing on opportunities in the AI industry chain and strategic resource allocation. Shenwan Hongyuan Securities believes that in the short term, the momentum in technology industry trends is narrowing and has begun to concentrate on specific segments such as PCBs and capacitors. The extreme structural divergence in the market continues, increasingly relying on new catalysts and verifications. With relative value-for-money repairs and a shift from high to low valuations, Shenwan Hongyuan Securities maintains that the short-term trend favors an oversold rebound. High-frequency trading funds participating in this shift may lead to rapid short-term movements but could increase volatility later. Meanwhile, investor confidence in extrapolating improvements in real estate and consumption remains insufficient, and the momentum for a broader recovery has yet to gather. Looking ahead, new growth directions should continue to focus on clues from the global industrial restructuring following the U.S.-Iran conflict. Key areas include those that can enhance global market share and effectively pass on costs overseas, leveraging China's energy security and supply chain security, such as new energy, new energy vehicles, and basic chemicals. In the medium term, the main assets driving this uptrend remain unchanged. It is advised to continue focusing on opportunities in the AI industry chain and strategic resource allocation. Optical communications, energy storage, memory, and gas turbines are still high-quality assets in the medium term. Strategic resources remain the growth assets of the era, with their scope potentially expanding further. Directions include non-ferrous metals, the oil industry chain, shipping, and new energy.

**CITIC Securities:** The short-term market has entered a critical juncture for capital rotation, with a likelihood of replicating an "M-shaped" volatile upward path. CITIC Securities notes that while volatility in the AI sector has increased significantly this week, the medium- to long-term industrial growth fundamentals remain intact. The short-term market is at a key point for capital rotation. There is a probability of replicating an "M-shaped" volatile upward path, where the index regains momentum after a process of "flushing out speculative positions → new capital stepping in." At the macro level, the U.S.-Iran memorandum is nearing completion, with international oil prices retreating to around $90 this week, significantly alleviating inflation concerns and potentially boosting global demand. Overall, it is recommended to adhere to the "growth-driven" investment strategy proposed in the medium-term outlook, focusing on the dual themes of "computing power growth" and "recovery growth." Key sectors to watch include AI (semiconductors, optical communications, electronic textiles, servers, etc.), non-ferrous metals (industrial metals such as copper and aluminum), and new energy (lithium batteries, sodium batteries, wind power, nuclear power, power grids, etc.).

**Industrial Securities:** From the perspectives of penetration rates, market evolution rhythm, and valuations, the globally synchronized AI supercycle is still in progress. Industrial Securities states that in the short term, with important technology conferences and industrial developments both domestically and internationally concentrated in June and July, along with the release of new corporate earnings and demand guidance, the global focus remains on technology. In terms of this broader cycle, whether viewed from penetration rates, market evolution rhythm, or valuations, the globally synchronized AI supercycle is still in its mid-stage. Short-term adjustments due to crowding should not be overly concerning, as sustained growth and industrial trends are key to the continuation of the market rally. In terms of allocation, with consensus on AI growth fundamentals strengthening and pressures such as crowding and liquidity remaining manageable, it is currently recommended to hold onto sectors with strong growth certainty and focus on internal rotations within the main themes, rather than reducing positions or systematically shifting from high to low valuations. Three strategies are suggested: First, adopt a long-term perspective while managing short-term risks, continuing to hold the most certain growth directions within AI. Second, rotate within strong main themes, using "crowding + overseas mapping + investor research" as core tools to explore niche opportunities within AI. Additionally, beyond AI, the export chain, especially in new energy and high-end manufacturing, is another noteworthy main theme.