Galaxy Securities: High Oil Prices, Continued Policy Support Driving A-Share Opportunities

Galaxy Securities research report stated that with high oil prices and continued policy support, China's Producer Price Index (PPI) turned positive year-on-year in March. The focus in the future will be on the recovery of industrial product prices driving A-share profit growth, with upstream profits expected to improve first. Investment opportunities include: 1. Continuing to focus on the energy sector and alternative demand sectors such as coal, coal chemicals, new energy, shipping ports, and oil and gas. Also keeping an eye on the recovery potential of non-ferrous metal sectors. 2. Defensive assets such as finance, utilities, and transportation should be considered. 3. Investing in technology innovation and self-controllable sectors, focusing on power equipment, energy storage, storage, semiconductors, computing power, and communication equipment. In the consumer sector, attention should be on agriculture, forestry, animal husbandry, fisheries, food and beverage, and home appliances. If there are signals of easing of future conflicts, it may be a good opportunity to focus on the recovery of previously oversold sectors.