Cai Xin Securities: It is estimated that the upward market trend in A-shares will continue this year, and it is recommended to lay out in the service consumption sector at the right time.

On March 5th, the government work report made a comprehensive deployment of the economic work in 2026. Yuan Chuang, Chief Economist of Caixin Securities, analyzed that 2026 is the starting year of the "14th Five-Year Plan". The Government Work Report continues the work principle of seeking progress while maintaining stability, adjusting the GDP growth target for 2026 to 4.5%-5%. Fiscal and monetary policies will remain loose, and developing new quality productivity and promoting high-quality economic development will be the focus of the policies throughout the year. It is expected that the upward trend in the A-share market in 2026 will continue to fluctuate, and external conflicts may affect the pace of market operation but are unlikely to change its direction. In terms of style, it is expected that the rising price sector and the technology sector will still be the two major themes of the market. At the same time, there may be opportunities in the service consumption sector: firstly, the report maintains the CPI target at 2% and emphasizes cracking down on "involution" competition, sustainable attention can be given to rising price sectors such as non-ferrous metals, chemicals, petroleum, and coal; secondly, the report points out that by the end of the "14th Five-Year Plan", the proportion of the value added of the core industries of the digital economy to the GDP will reach 12.5%, and the cumulative reduction of unit GDP carbon dioxide emissions during the "14th Five-Year Plan" will be 17%. It is expected that the artificial intelligence and new energy industries will usher in a golden period of development, so attention can be paid to AI applications, domestic computing power chains, and the new energy sector. Finally, the report emphasizes "implementing the action to improve the quality of service consumption and benefit the people" and "unlocking the potential of consumption in areas such as culture and tourism, events, and health preservation". Therefore, attention can be paid to the direction of service consumption in cultural tourism, travel, movies, and elderly care.