Zhongjin: If US inflation and liquidity shocks cause a pullback in Chinese and American stocks, gold, US Treasury bonds and other assets, it is recommended to increase positions on dips.

China calculates the statistical error of US inflation and predicts that there will be compensatory increases in the CPI data for December 2025, January 2026, and April 2026. If recent US inflation is stronger, it may lead to the Federal Reserve slowing down the pace of interest rate cuts, tightening global liquidity on the margin, and increasing uncertainty in domestic and foreign asset classes. It is recommended to increase commodity allocations to hedge risks. If US inflation and liquidity shocks cause a pullback in assets such as Chinese and US stocks, gold, and US bonds, it is recommended to increase allocations on dips.