According to a CITIC Securities research paper, as the Chinese manufacturing industry continues to increase its global pricing power and share of economic profits, the intrinsic value of assets also continues to rise, which will eventually lead to continued appreciation of the RMB. The CITIC Securities Research Department's macro team predicts that the RMB is expected to appreciate to 6.8 against the US dollar in 2026. In order to avoid damage to export-oriented manufacturing industries due to premature and rapid unilateral appreciation of the RMB, monetary easing that exceeds expectations is necessary. Monetary easing that exceeds expectations may drive real interest rates downward and leverage domestic demand to a certain extent, and a systemic boost in domestic demand is a necessary condition for the overall market to break the turbulent impasse and move to the next level in 2026. Until then, it is expected that fluctuations and the rotation of structural opportunities will be the norm for A-shares. We still recommend looking for a direction with global exposure in terms of allocation and a logical improvement in profit margins. 1) In the field of resources and traditional manufacturing, I am still optimistic about leading enterprises corresponding to industries where China has a share advantage in the world. He tells the story of “supply is internal and internal, demand is profit from abroad”, and continuously enhances global pricing power. The key industries include non-ferrous metals, chemicals, and new energy. 2) Going overseas is still an important way for companies to open up profit and market capitalization space. The transition of A-shares from an emerging market position with domestic exposure to a mature market position with global exposure is still a characteristic of the times. In the process, problems with the frequency of resonance with overseas risk assets and the economic environment will inevitably increase. This is the only way to go. The industries we focus on include construction machinery, innovative pharmaceuticals, power equipment, games, and military. 3) From the perspective of high and low, the rotation of non-crowded varieties is also an option to directly increase positions. Additionally, it is recommended to closely monitor policy changes at the year-end Politburo meeting and the Economic Work Conference.

According to a CITIC Securities research paper, as the Chinese manufacturing industry continues to increase its global pricing power and share of economic profits, the intrinsic value of assets also continues to rise, which will eventually lead to continued appreciation of the RMB. The CITIC Securities Research Department's macro team predicts that the RMB is expected to appreciate to 6.8 against the US dollar in 2026. In order to avoid damage to export-oriented manufacturing industries due to premature and rapid unilateral appreciation of the RMB, monetary easing that exceeds expectations is necessary. Monetary easing that exceeds expectations may drive real interest rates downward and leverage domestic demand to a certain extent, and a systemic boost in domestic demand is a necessary condition for the overall market to break the turbulent impasse and move to the next level in 2026. Until then, it is expected that fluctuations and the rotation of structural opportunities will be the norm for A-shares. We still recommend looking for a direction with global exposure in terms of allocation and a logical improvement in profit margins. 1) In the field of resources and traditional manufacturing, I am still optimistic about leading enterprises corresponding to industries where China has a share advantage in the world. He tells the story of “supply is internal and internal, demand is profit from abroad”, and continuously enhances global pricing power. The key industries include non-ferrous metals, chemicals, and new energy. 2) Going overseas is still an important way for companies to open up profit and market capitalization space. The transition of A-shares from an emerging market position with domestic exposure to a mature market position with global exposure is still a characteristic of the times. In the process, problems with the frequency of resonance with overseas risk assets and the economic environment will inevitably increase. This is the only way to go. The industries we focus on include construction machinery, innovative pharmaceuticals, power equipment, games, and military. 3) From the perspective of high and low, the rotation of non-crowded varieties is also an option to directly increase positions. Additionally, it is recommended to closely monitor policy changes at the year-end Politburo meeting and the Economic Work Conference.