GEMS FIRST TO MARKET

研报英文原文证据摘录

GEMS FIRST TO MARKET

could be introduced after the July Politburo meeting if June activity data and 3Q momentum remain

soft. JPM China AI ecosystem top picks are Zhongji Innolight, Victory Giant-H, JCET-A and Weichai-H in the global supply

chain, and NAURA, AMEC-A, Baidu, Zhipu and Iluvatar CoreX as localization plays. We think China’s AI ecosystem can

reassert leadership during the earnings season, outperforming on both 2Q results and 2H guidance.

India Equity Strategy (Rajiv Batra/Rushit Mehta), India

Flows & Positioning in Jun’26 Q - FIIs trim Financials; DMFs add Discretionary/Healthcare; US

$115bn potential foreign inflows

Foreign investors aggressively reversed course in the second half of June, injecting around $3.3bn over the last 27 trading

sessions driven by tactical rotation to non-AI cohort, falling oil prices in 2Q, policy measures to stabilize INR and robust

earnings expectations (ex-energy sector). Consumer services, including e-commerce and hotels, attracted the highest foreign

buying during the first half of July, followed by Metals and Mining and Healthcare ( Figure 80 FPIflows-FinancialsandAutosfacethebruntofforeignselingthisyear). We believe the selling pressure

will continue to ease as foreign ownership has come down to 15.8%, which is a 15-year low ( Figure 2 DIownershipcontinuestoincrease,whileFIownershipcontinuestofal). At the same time, FIIs

appear to be maintaining a preference for mid- and small-cap segments to capitalize on higher-growth sectors and longer

runway for expansion. If foreign LO investor groups were to neutralize their underweight in Indian equities, this could translate

into potential net inflows of around $115bn. During the Jun’26 quarter, FIIs trimmed their OW in Financials and UW in