Galaxy Securities: bullish on investment opportunities in the Chinese stock market in 2026.

Galaxy Securities research report stated that they are optimistic about investment opportunities in the Chinese stock market in 2026: firstly, the counter-cyclical policy remains strong, with low inflation rebounding and nominal GDP rising, leading to the recovery of corporate profits and consumer confidence, improving internal conditions; secondly, the focus of US policy is shifting internally, and China and the US are entering a valuable period of relaxation, with overall loose monetary policy and improved external environment; thirdly, the capital market as an important hub for new and old energy transformation is significant in terms of "riding the wave" and "taking advantage of the situation", with long-term funds entering the market and a positive cycle forming between the stock market and rising stock prices, thereby boosting household savings moving into the market. Fourthly, Galaxy Securities' "Galaxy Compass" indicates that with housing prices gradually stabilizing and the exchange rate steadily appreciating, investing in the Chinese stock market is expected to achieve excess returns. Although achieving "broad credit" may be difficult in 2026, the seesaw effect between stocks and bonds may continue to disrupt risk-free returns, with the 10-year treasury yield expected to remain between 1.6% and 1.95%, trending higher before declining.