{
  "id": 106814,
  "title": "Why Chinese brokers forecast an A-share tech and chip rebound",
  "url": "https://urgent.news/2026/08/03/why-chinese-brokers-forecast-an-a-share-tech-and-chip-rebound-106814",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-03T23:00:05.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/business/markets/article/3362812/why-chinese-brokers-forecast-share-tech-and-chip-rebound"
  },
  "original_language": "en",
  "account": "A number of prominent Chinese brokerages have expressed confidence in the prospects of domestic tech shares in the coming weeks, contrasting this outlook with the significant sell-off observed in South Korean financial markets. Citic Securities, the country's second-largest brokerage by total assets, indicated that the recent sharp decline in A-share tech stocks was primarily a correction rather than the devastating deleveraging shock experienced in South Korea. \"While some liquidity pressures persist in certain sectors, the impact on noncore AI shares has largely dissipated,\" stated the brokerage in a recent note.\n\nThe warnings came in the wake of a sell-off in semiconductor shares during July, as investors took advantage of the significant gains in chip stocks. Despite a recent rally, the Korea Composite Stock Price Index (Kospi) experienced a 22 percent decrease in monthly value, marking its steepest decline since the global financial crisis. China's CSI 300 Index also saw a 7.9 percent decline during the same period, while the S&P 500 Index in the United States fell by 0.1 percent, marking its worst July performance since 2014.\n\nAsian trading on Monday saw the Kospi fall over 5 percent, while China's CSI 300 Index dropped by 0.98 percent and the Hong Kong Hang Seng Index edged up by 0.48 percent. Looking towards the future, Citic Securities forecasted a high likelihood of a broad recovery in A shares, urging investors to concentrate on specific tech stocks and to increase their investments in energy, chemicals, non-ferrous metals, non-bank financials, and innovative pharmaceuticals. Similarly, China Securities, the nation's eighth-largest brokerage, suggested that irrational panic selling had likely concluded. They also pointed out that the congestion in the A-share market was easing, anticipating that trading would return to focusing on corporate earnings and company fundamentals in August. They recommended the AI computing power, semiconductor equipment, non-ferrous metals, new energy, and machinery sectors. Huatai Securities, another leading Chinese brokerage, also noted that tech shares might soon reach a floor, citing signs of US hedge funds and South Korean leveraged funds withdrawing from extreme positions. Although selling pressure had remained a factor recently, it had ceased to dominate, according to Huatai Securities. They identified the second half of August as a critical period to determine if the tech sector would undergo a significant rally, given the close attention investors are paying to the results of Nvidia and other semiconductor companies.",
  "summary": "Leading Chinese brokerages, including Citic Securities, are optimistic about domestic tech shares traded in August. They believe that A shares, which include tech and chip stocks, have only undergone a correction after investors piled into artificial intelligence-related sectors. This is in contrast to the sharp sell-off seen in South Korean financial markets.\n\nAccording to Citic Securities, the liquidity pressure in some industries remains, but its impact on non-core AI shares has largely subsided. The country's second-largest brokerage by total assets noted that global markets experienced a sell-off in semiconductor shares in July, as investors rushed to lock in profits following a strong surge in chip stocks.\n\nThe sell-off was more pronounced in South Korea, where the Korea Composite Stock Price Index suffered a 22 per cent monthly loss, its steepest decline since the global financial crisis, according to SCMP Business. In comparison, China's CSI 300 Index posted a 7.9 per cent fall, while the S&P 500 Index in the United States slipped 0.1 per cent, its worst July performance since 2014.",
  "key_points": [
    "Chinese brokerages foresee A-share tech and chip rebound.",
    "Citic Securities attributes recent decline to correction, not deleveraging shock.",
    "Huatai Securities predicts tech sector rally in second half of August."
  ],
  "editors_take": "Chinese brokerages' optimistic forecasts for a rebound in domestic tech shares signal a shift in sentiment, suggesting that recent sell-offs were overdone and setting the stage for a potential rally in August.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "SCMP Business",
        "title": "Why Chinese brokers forecast an A-share tech and chip rebound",
        "url": "https://urgent.news/2026/08/03/why-chinese-brokers-forecast-an-a-share-tech-and-chip-rebound",
        "published": "2026-08-03T23:00:05.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}