CITIC Securities: Investors' risk appetite is expected to remain high, and the pattern of favorable stock performance is expected to continue.

CITIC Securities stated that the significant stock and bond seesaw market since the second quarter is due to the current complex macro environment: the economic cycle has bottomed out, but economic recovery mainly relies on policy driving. Therefore, the current stock and bond seesaw market is to some extent similar to that of 2015. The bull market in global emerging markets, the accelerated entry of medium and long-term funds into the market, and the rapid increase in market risk appetite have catalyzed this round of stock and bond seesaw market. Looking ahead, investors' risk appetite is expected to remain high, and the dominance of stocks in performance is expected to continue. The market's high valuation is not necessarily an obstacle to its rise, and investors should pay more attention to whether inflation will rebound in the fourth quarter. Bond yields have returned to a reasonable level corresponding to policy rates under the driving force of the stock and bond seesaw, and it is expected that bonds will gradually become desensitized to the seesaw effect with stocks. However, it may be difficult for interest rates to quickly return to a downward trend in the short term, and short-term rates may remain volatile. Waiting for clearer guidance from the central bank on rate cuts may be a better choice.