CICC mid-term strategy: grasp structural themes in the context of differentiated recovery, focus on four major sectors to capture segmented investment opportunities.

CITIC Securities released its mid-term investment strategy report for 2026, stating that the first quarter of 2026 saw a solid start for the Chinese economy, with the PPI turning positive marking an important macro turning point in the industrial cycle and signaling the official start of domestic economic recovery process. While the geopolitical conflict in the Middle East has caused temporary disruptions to the global economy, it does not change the core trend of mild economic recovery domestically. Looking ahead to the second half of 2026, the macro economy will present characteristics of "differentiated recovery, policy support, and structural optimization." Monetary policy easing can still be expected, fiscal policy will focus on implementing existing measures, and policy direction will revolve around expanding domestic demand, self-reliance in innovation and technology, energy and resource security, and optimizing industrial structure. The implementation of the "15th Five-Year Plan" will lay the foundation for long-term development. The moderate appreciation of the renminbi and corporate profit recovery will resonate, creating a systematic re-evaluation of the value of Chinese assets. Investors need to grasp the structural main themes in the differentiated recovery, focusing on investment opportunities in consumption, technology, resource security, and thematic dividends in the four major sectors.