Why Chinese brokers forecast an A-share tech and chip rebound

Leading Chinese brokerages have expressed optimism for domestic tech shares traded in August, distinguishing them from the sharp sell-off that has rattled South Korean financial markets.Citic Securities said it believed mainland-traded shares – also known as A shares – had only undergone a correction after investors piled into Artificial Intelligence-related sectors, rather than suffering the deleveraging shock seen in South Korea.“The liquidity pressure in some industries remains, but the impact on some noncore AI shares has now largely subsided,” the country’s second-largest brokerage by total assets said in a note.