CITIC Securities: The short-term tension between India and Pakistan may continue, but it is expected that the intensity and scope of the conflict will not escalate on a large scale.

CITIC Securities research report states that since the Kashmir shooting incident at the end of April, tensions along the India-Pakistan border have continued to rise. Looking back at history, the territorial dispute between the two sides over Kashmir has been longstanding, with conflicts occasionally occurring but usually quickly settling down. Currently, India and Pakistan are showing a tough stance, but neither side seems willing to escalate the conflict, and other countries are actively calling on both parties to exercise restraint. Looking ahead, in the short term, tensions between India and Pakistan may continue, but the intensity and scope of the conflict are unlikely to escalate on a large scale. The ongoing conflict may have some logical connections and catalytic effects on military, agriculture, and other related topics, but the probability of the situation further deteriorating is low, and the impact on other major asset classes is relatively limited.