Schroders Fund: Bullish on Emerging Market Equities, Focused on Technology and Cyclical Sectors

Recently, in its latest monthly asset allocation outlook, Schroders Fund stated that against the backdrop of a continuing global interest rate cut cycle, equity assets warrant attention, especially as valuations in emerging markets are attractive. Consequently, Schroders Fund maintains an optimistic view on the A-share market, particularly favoring cyclical and technology sectors. Regarding value versus growth styles, considering recent gains and changes in expectations, it suggests investors adopt a balanced allocation strategy.

Schroders Fund indicated that in the consumer sector, investment requires attention to whether improved capital market performance can drive its recovery. The overall valuation of the consumer sector is currently at a reasonable level, slightly above the median, but it is still possible to筛选出 some individual stocks with attractive valuations. Furthermore, from a fundamental perspective, the technology industry is in a phase of rapid and dynamic development. The most significant recent news worthy of attention is the rise of OpenAI, which is actively seizing computing resources and has launched more intelligent "AI + e-commerce" applications. Subsequently, OpenAI is expected to continue strengthening its computing power layout and accelerate its cooperation process with other enterprises.

"Although the optical module sector is currently in an adjustment phase, if foreign capital does not continue to increase its holdings, the concentration of positions held by domestic institutions may become more pronounced. Overall, we remain positive on the future performance of the technology sector," Schroders Fund said.