CITIC Securities: Going abroad is still one of the strong clues of better-than-expected performance.

CITIC Securities research report stated that after Hong Kong stocks, A shares are gradually transitioning into an incremental market. The most important thing is to continuously search for new sectors with expected differences and the potential to form a consensus of funds in the future. The possibility of going global after the mid-term report season may be a new direction. From the mid-term report forecast, going global is still one of the strong clues of performance exceeding expectations; based on the experience of the past few years, going global has a significant impact on the increase of enterprise ROE and profit margin, and going global itself is also an active form of "anti-inner stratum" and increasing profit margin; looking at future trends, once the logic of explaining global revenue exposure is clear, it will bring stability to stock allocation and valuation premium, which is the necessary path for emerging markets to enter mature markets. This year, going global is one of the best clues for performance, but due to the trade war causing market volatility and always presenting a scattered bottom-up driven state, with the gradual stabilization of trade war expectations after August and the end of the mid-term reporting season, going global may once again form a sectoral market trend. In terms of allocation, from now until the end of the mid-term reporting season, it is still advisable to rotate around Hengke, non-ferrous metals, communications, innovative pharmaceuticals, military industry, and gaming, with a current bias towards Hengseng Tech.