CICC: The Current Stage May Represent a Relative Medium-Term Low Point for A-Shares, Deep Pullback Has Created Favorable Positioning Opportunity

China Financial News, March 24 — According to a research report from China International Capital Corporation (CICC), the current period may represent a relatively low point for the A-share market in the medium term, and the recent deep correction has created good opportunities for deployment. Although short-term trends still carry some uncertainty, after the adjustment, the risks in the A-share market have been further released, and valuations are at relatively reasonable levels. In the medium term, the macroeconomic environment remains fundamentally unchanged, and the logic supporting the “steady progress” of the A-share market still holds. The release of risks and the downward adjustments are expected to present good allocation opportunities. China’s manufacturing advantages are evident. Currently, artificial intelligence is in a stage of new technological iteration and application deployment. The demand for energy and costs in training new models is growing exponentially, supporting upstream demand, and driving related listed companies to raise product prices and improve profits. In terms of allocation, focus on several main lines: 1) Prosperity and growth: industries benefiting from AI technology deployment such as optical communications and storage; new energy-related sectors like batteries and energy storage. 2) Cyclical resource stocks: considering capacity cycle positions, focus on segments supported by supply and demand patterns that drive price increases and performance certainty, such as power grids and chemicals. 3) High dividend stocks may still show phased and structural performance this year, so attention should be paid to matching with cash flow.