CITIC Securities: Revaluation of China's Advantage Manufacturing Pricing Power
Currently, there are three key issues: First, the geopolitical conflict in the Middle East is gradually evolving into sustained and severe global supply chain disruptions, while the A-share index has experienced a bull market for 1.5 years and is now facing a critical juncture—what will drive it further upward? Second, global financial conditions are beginning to show signs of weakening; will market style experience significant changes? Third, AI-driven disruptive innovation and code bloat continue to accelerate—what impact will they have on economic structure and asset allocation direction?
At the index level, there is limited room for continued valuation recovery. The recovery in corporate profit margins is the key to sustaining the A-share bull market in the next phase. Global supply chain disruptions present another opportunity to test China's advantage manufacturing industry's pricing power. From a style perspective, the Middle East conflict has been a catalyst for style shifts this year, with rising global costs combined with tightening financial conditions