China Merchants Securities: A-share investor positioning styles may further balance, with a shift toward value, rising prices, and pro-cyclical directions

GateUser-bd883c58 · 2026-03-15T19:37:10+00:00

China Merchants Securities research report points out that due to geopolitical conflicts and rising oil prices, the core contradiction in the A-share market has shifted toward supply security and inflation expectations. In the short term, the market will mainly fluctuate, resource sectors will benefit, and investors' holding styles may shift toward a balanced approach between value and cyclical sectors.

GateUser-bd883c58

2026-03-15 19:37:10

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China Merchants Securities: A-share Investors’ Portfolio Styles May Further Balance and Shift Toward Value and Cyclical Price-Increase Sectors

March 15, 2024 — China Merchants Securities latest research report points out that geopolitical conflicts have shifted the market’s core contradictions toward supply security and strategic resources, driving the logic from risk aversion to concerns about re-inflation. Rising oil prices strengthen inflation expectations, suppress the outlook for interest rate cuts, and impact most assets. In the short term, ongoing oil price increases leading to re-inflation trades and delayed Federal Reserve rate cuts may influence market risk appetite, causing the A-share market to remain volatile with clear structural differentiation, benefiting resource sectors. Meanwhile, with PPI rebounding and expectations of turning positive, investors’ portfolio styles may further balance and drift toward value and cyclical sectors driven by rising prices.

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