A-Shares Enter Second Round of Recovery Amid Eased External Headwinds
CITIC Securities predicts that China's A-share market has entered its second round of recovery. The market had been impacted by rising oil prices and U.S. Treasury yields, but this pressure has eased in recent weeks as oil prices have declined.
The easing of external headwinds has led to a shift in focus back to earnings momentum, creating opportunities for capital to flow into high-prosperity sectors.
CITIC Securities recommends a balanced approach with tiered positioning: allocating to segments experiencing supply constraints and price hikes, such as optical chips, PCB manufacturing, CCLs, and complete server systems; holding industrial metals like copper, aluminum, and tin; and using dividend-yielding assets as a core holding to hedge against volatility.