CITIC Securities: Four allocation approaches to navigate the current market.

CITIC Securities proposes four allocation approaches to navigate the current market. First, a steady-return strategy, centered on industries with high dividend yields or supply-clearing potential, focusing on supply changes when demand signals are chaotic. Second, an expectation-mapping strategy, similar to "airlines and hotels in 2022" identifying sectors where the market is uniformly bearish on fundamentals and positioning is extremely low, then cashing out at the point of eventual policy change, playing only for valuation repair. Third, an overseas interest rate decline strategy, taking the correction of North American AI investment and financing expectations and the corresponding decline in overseas long-end rates as the macro premise, and after the market revises EPS expectations, watching whether non-AI manufacturing going global and resource stocks can break out of short-term demand suppression. Fourth, a sector heat + chip clearing strategy, similar to finding "household energy storage and inverters in 2022," using the unexpected surge in demand from new areas as the timing to bottom-fish tech, seeking areas where institutions and active capital can resonate, rather than simply betting on "inorganic" themes. CITIC Securities believes all four strategies have the potential to generate relative returns and suit capital with different return-risk preferences, with the market's funding-side pressure determining which strategy prevails at any given stage.