CLSA: A-share and H-share industry and earnings cycles still diverge; differentiated allocation recommended.

CLSA released a research report stating that A-shares and H-shares have gradually synchronized in the short term, but style, industry, and earnings cycles still diverge, and investors are advised to adopt differentiated strategies for A-shares and H-shares. The bank noted that earnings verification in the A-share market is more concentrated and solid, while H-shares offer greater recovery optionality. The bank recommends allocating to companies with fundamental support in the A-share market, balanced with defensive low-volatility and value exposure; for H-shares, it recommends retaining exposure to profitable companies and financial leaders, while selectively positioning for earnings recovery opportunities in the healthcare and consumer sectors. In terms of industry performance, A-share consumer and healthcare, financial, and cyclical stocks rebounded in the third quarter from a weak first half, while H-share leading sectors were concentrated in financials, real estate, and infrastructure, with manufacturing and technology stocks reversing.