Huafu Securities Chief Macro Analyst Chen Xing: Industrial Foundation Upgrading and Accelerated Domestic Substitution Make the Main Line of A-Share Medium- to Long-Term Structural Market Clear

Chen Xing believes that under the guidance of top-level planning, domestic substitution has entered a new stage of coordinated advancement of key technology breakthroughs and applications, with large-scale verification being implemented, and is an important mainline supporting the medium- to long-term structural market in A-shares. In his view, China has the world's most comprehensive and complete manufacturing system, and domestic substitution is not a short-term theme but a long-term industrial upgrading dividend that runs through the "15th Five-Year Plan" period, and is expected to continuously unleash the earnings elasticity of hard-tech growth stocks and open up upside space for related tracks in A-shares. At the same time, Chen Xing pointed out that the comprehensive investment and financing reform is moving from institutional design into a period of delivering results. In Chen Xing's view, from the investment side, in 2025 various medium- and long-term funds significantly increased their entry into the market, with actual new inflows exceeding 1 trillion yuan; and since 2026, medium- and long-term funds such as social security, annuities, and insurance have made combined net purchases of A-shares exceeding 600 billion yuan, with the market value of their holdings of A-share tradable shares increasing by 12.5% compared with the end of 2025. From the financing side, since the beginning of this year, the average review period for IPOs on the Shanghai and Shenzhen stock exchanges has been shortened to about 6 months, and the review for refinancing by some high-quality companies takes less than 1 month, with the inclusiveness and adaptability of the system clearly enhanced.