CITIC Securities: Market Aims for Recovery After Short-Term Factors Subside Post-Holiday

CITIC Securities believes that the recent decline in China's A-share market was driven by a convergence of multiple short-term factors ahead of the holiday, with expectations of a recovery once these factors are digested. Looking ahead, the firm highlights three key drivers: short-term earnings validation in October; medium-term policy stimulus potentially arriving soon; and long-term liquidity considerations as interest rate hike probabilities recede despite elevated 30-year U.S. Treasury yields. CITIC Securities forecasts that following the post-holiday recovery, the A-share market will likely continue its oscillating pattern, recommending a balanced allocation strategy. Offensively, focus should be on AI computing power (PCB, CCL, electronic cloth, etc.) and innovative drugs. Defensively, dividend-paying sectors such as banking, non-bank financials, coal, and utilities should serve as core holdings. (Jiemian News)