CITIC Securities: The rally driven by price increases is expected to continue through March

CITIC Securities research reports indicate that narrative-driven and price-increase catalysts remain the main drivers of the market. CITIC Securities has developed quantitative indicators to distinguish whether recent market movements in different industries are driven by sentiment or fundamentals. Some industries with high gains are classified as sentiment-driven, such as precious metals, charging and power equipment, and bulk chemicals; some industries with modest gains are also classified as sentiment-driven, such as intelligent driving, media and gaming, humanoid robots, and white wine; some industries with very high gains are classified as fundamentally driven, such as rare earths and minor metals, wind power, and chip design; additionally, some industries with moderate gains but high discussion volume are classified as fundamentally led, such as North American AI computing power and cement building materials. From a market perspective, whether driven by event catalysts or signals from volume and price (CITIC Securities has built a quantitative monitoring framework), the clues from price increases and AI narratives remain within a safe zone. The outbreak of geopolitical risks in Iran and the rising expectations for policies related to “anti-involution” around the Two Sessions may continue to strengthen the price-increase signals. From an allocation perspective, AI exposure plus supply constraints equal price-increase expectations. It is expected that the market driven by price increases will continue through March. (People’s Financial News)