CICC: The dividend yield of A-shares is significantly more attractive compared to long-term bond yields. We recommend focusing on industries such as AI computing power, innovative pharmaceuticals, and non-ferrous metals.

The research report from Zhongjin stated that from a fundamental perspective, financial data is often a leading indicator of the market. Improvement in indicators such as monetary growth indicates that policies are in action. The recent high-level meetings once again mentioned "anti-internal competition," reflecting the attention to issues such as weak inflation. From a perspective of fund, after experiencing 10 months of fluctuation, the chip structure has been optimized. Our calculation shows that the current market level is significantly higher than the average cost of funds in the past 1 year and 3 years, and the profitability effect is improving. In the current environment of "asset shortage," the dividend yield of A shares is significantly more attractive compared to the long-term bond yield, which is the underlying logic for the market to improve. In terms of allocation, it is still recommended to hold low-volatility assets as a core asset in uncertain environments. On the other hand, considering the rebound in the economy and industrial trends, it is recommended to focus on industries such as AI computing power, innovative medicine, and non-ferrous metals.