Markets may continue to trade within a broad range for now. With margin financing balances pulling back notably and turnover rates sitting at subdued levels, the room for further downside in indices has narrowed considerably. However, domestic demand recovery remains relatively weak, and the overall market lacks the conditions for a broad-based rally. Meanwhile, persistent volatility in US-Iran tensions and elevated long-end US Treasury yields are likely to keep stirring global assets. Taken together, a mix of factors points to short-term market fluctuations staying within a defined band.

When it comes to positioning, the focus should be on three promising growth tracks led by hard technology. During periods of range-bound trading, high-growth sectors are expected to remain the core of portfolio allocation, but the opportunity set is not confined to tech alone. Beyond technology, export-oriented chains and resource segments are seeing steady fundamental improvements and deserve closer attention. In the hard tech arena, sectors such as electronics, communications, and defense stand out. For export-driven industries, electrical equipment and machinery present notable prospects. In upstream resources, non-ferrous metals, coal, oil and petrochemicals, and basic chemicals warrant monitoring.

Banks
For banks, key metrics like net interest margins and asset quality at listed lenders are expected to hold steady in the second half. The upward trajectory of revenue improvement, earnings recovery, and balance-sheet strengthening is likely to persist. The longer-term narrative also continues to play out—amid a low-rate environment, capital is increasingly rotating into equity assets, with returns likely to show a structural tilt over time. Bank stocks, offering dependable baseline returns, are becoming more attractive from a positioning perspective, and the outlook remains constructive.

Insurance
On the liability side, premium growth at life insurers faced headwinds in July due to elevated base effects and the "bank-insurance alignment" policy, with pressure likely extending into August and creating some drag on new business in the third quarter. Value metrics at listed insurers may decelerate accordingly, though optimized business mix should keep growth in positive territory. On the asset side, despite equity market volatility, the five listed insurers posted a combined 78% earnings growth in the first half, providing solid support for the full year. With investment-side policy measures helping stabilize capital markets, insurers as "patient capital" are positioned to benefit over the long run. Key names to watch include Suzhou Bank, Bank of Hangzhou, and China Life Insurance.

Home Appliances
The secondary market is currently cautious on the home appliance sector, with a wait-and-see tone prevailing. This is largely driven by three practical factors: first, high base comparisons from last year may cap profit recovery in the first half of 2026; second, rising costs for copper and other raw materials are squeezing manufacturers; and third, the stimulus effect from earlier consumption policies is fading, with a new demand growth engine yet to emerge. On valuation, most sector names have already digested pessimistic expectations, making leaders increasingly defensive and attractive from a medium-to-long-term perspective. Investors are advised to build positions in batches during pullbacks and raise sector weightings. The sector's high-dividend profile continues to draw capital—top players boast strong cash flows, solid earnings foundations, and mature, stable payout mechanisms, with dividend yields that remain compelling within the A-share equity universe. Stocks to monitor include Gree Electric Appliances, Haier Smart Home, Midea Group, and Bull Group.

Transportation
In aviation, summer travel demand is proving steady, with fares ticking up on a month-over-month basis. In oil tanker shipping, Iran's fuel crisis is deepening, and regional conflicts continue to support risk premiums. Express delivery is showing clear signs of volume and price recovery, with anti-involution efforts yielding faster results. In logistics, Mongolian coking coal prices are recovering steadily, cross-border demand between China and the US is growing rapidly, and air cargo rates remain firm. For dividend assets, the focus is on allocation opportunities amid potential style shifts in the market. Key names include China Eastern Airlines, China Southern Airlines, Air China, SF Holding, JD Logistics, and Huntkey.

Computer & IT
Domestic internet giants are ramping up capital expenditures, and with homegrown models seeing improved performance, commercialization is accelerating. This is likely to drive domestic computing power into a long-term high-growth trajectory. Investment opportunities should center on domestic GPU, CPU, server ODM, and supporting switching network players. Recommended targets include Hikvision, iFlytek, and Kingsoft Office.

Risk Analysis
1. Significant volatility in overseas markets; 2. A notable decline in market sentiment; 3. Economic growth falling short of expectations.