Chinese Brokerages Flag Oversold Sectors with Strong Q3 Earnings Prospects

The notable shift here is tactical rather than structural: brokerages are calling the liquidity spiral over and pivoting to a barbell of oversold cyclicals plus dividend defense, which signals they see the rebound as tradable but not yet a durable regime change. The emphasis on Q3 earnings expectations matters most — it ties the bounce to fundamentals rather than flows alone, and it puts sectors with visible earnings momentum, not the broad index, at the center of the story. Whether ETF inflows keep pace and whether Q3 preannouncements actually validate the improving-earnings thesis is the open question.