The latest strategic insights from ten major brokerages have been released, summarized as follows:
**CITIC Securities**: Focus on sectors with overlapping opportunities—those with overseas exposure as a foundation and potential catalysts from domestic demand. While export-oriented sectors have already been validated this year, their upside in 2026 may be limited to earnings growth rather than valuation expansion. Domestic demand sectors currently show limited upward momentum, but low investor expectations and positioning could lead to valuation elasticity if surprises emerge. Key overlapping sectors include resource and traditional manufacturing industries where China holds global market share advantages, such as non-ferrous metals, chemicals, and new energy. Companies expanding overseas remain a critical theme, with attention on engineering machinery, biotech, power equipment, gaming, and defense. For lower portfolio volatility, domestic consumer sectors like aviation, duty-free retail, hotels, beverages, IP-related industries, and gold jewelry are worth monitoring.
**CITIC Construction Investment**: A year-end rally is brewing. After prolonged adjustments since September, investor sentiment has turned cautious. However, recent key events and data have met or slightly exceeded expectations, reinforcing the bullish case driven by structural opportunities and capital market reforms. Mid-term sector picks include non-ferrous metals and AI computing, with themes like commercial aerospace, controlled nuclear fusion, and humanoid robotics. Hong Kong stocks, particularly internet giants and biotech, also present opportunities.
**Huaxi Securities**: Market sentiment is recovering, entering a second phase of rebound. The pre-correction levels now act as support, with investors viewing dips as buying opportunities. However, structural risks loom as high trading concentration (44.42% in top 5% stocks) and elevated valuations (14.91% of stocks at 95% historical highs) may pressure sustained rallies. Despite this, capital is selectively targeting niches like the Beijing Stock Exchange 50 Index (+3.84% on Dec 11) and thematic plays (commercial aerospace, nuclear power).
**Guojin Securities**: The Central Economic Work Conference emphasized domestic demand expansion and anti-internal competition, clarifying China’s path out of deflation. Policies will shift toward endogenous drivers (e.g., income growth plans) over government stimulus, with manufacturing profit recovery expected to boost employment and wages—mirroring the 2016–2017 cycle.
**Everbright Securities**: Policy tailwinds support a year-end rally, with TMT and advanced manufacturing as core focuses. Defensive and consumer sectors may outperform if external volatility persists. Historical trends suggest strong market performance in the first year of new five-year plans (e.g., 2026).
**Dongwu Securities**: AI industry developments highlight full-stack capability races and cross-sector applications. Domestic players like Lenovo and Huawei are advancing in heterogeneous computing and smart scheduling, boosting demand for high-spec data centers.
**Xinda Securities**: Style rotation favors undervalued sectors. Financials (especially non-bank), power equipment, and machinery (export-driven) offer upside, alongside metals/defense (geopolitical resilience) and high-dividend assets (oil, utilities, transport).
**Huabao Securities**: Post-policy meeting, growth sectors (tech) are primed for spring rallies. Short-term risk appetite may dip, but corrections present entry points.
**BOC International**: Focus on AI computing (optical modules, chips) and commercial aerospace, bolstered by China’s new industry action plan and funding initiatives.
**Galaxy Securities**: Policy-driven themes (AI, energy tech, aerospace) and manufacturing profit recovery are key for 2026. Domestic demand and corporate globalization remain auxiliary lines. Near-term, expect continued rotation amid year-end volatility.
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