CICC pointed out that the current global macro environment and innovative industry trends are still relatively favorable to the growth style, but after experiencing an increase in the growth sector for more than a year, valuations have also increased quite a bit. We believe that the A-share market style may be more balanced in 2026, mainly due to the promotion of reduced production capacity. It is recommended to focus on three main lines: 1) Booming growth: The field of AI technology has experienced 3 years of rapid development, and is expected to gradually enter the industrial application implementation stage in 2026. There are still opportunities at the level of computing power, optical modules, and cloud computing infrastructure, but it may be more in the domestic direction; the application side focuses on robots, consumer electronics, intelligent driving, commercial space, and software applications. In addition, innovative drugs, energy storage, and solid-state batteries are also entering a boom cycle. 2) Breakthrough in external demand: Going overseas is still a definite growth opportunity. Combined with the trend of going overseas and exposure to the US, it is recommended to focus on global pricing resources such as household appliances, construction machinery, commercial buses, power grid equipment and games, and non-ferrous metals. 3) Cycle reversal: Based on the position of the production capacity cycle, it is recommended to focus on supply and demand issues close to an inflection point or policy support areas, and focus on chemicals, aquaculture, new energy, etc. Furthermore, the current real estate chain and general consumer market may still be on the left, and macroeconomic changes and policy reform dividends in 2026 are expected to balance the “temperature gap” between the old and new economies. The high dividend style may still be mostly structured, phased opportunities.

CICC pointed out that the current global macro environment and innovative industry trends are still relatively favorable to the growth style, but after experiencing an increase in the growth sector for more than a year, valuations have also increased quite a bit. We believe that the A-share market style may be more balanced in 2026, mainly due to the promotion of reduced production capacity. It is recommended to focus on three main lines: 1) Booming growth: The field of AI technology has experienced 3 years of rapid development, and is expected to gradually enter the industrial application implementation stage in 2026. There are still opportunities at the level of computing power, optical modules, and cloud computing infrastructure, but it may be more in the domestic direction; the application side focuses on robots, consumer electronics, intelligent driving, commercial space, and software applications. In addition, innovative drugs, energy storage, and solid-state batteries are also entering a boom cycle. 2) Breakthrough in external demand: Going overseas is still a definite growth opportunity. Combined with the trend of going overseas and exposure to the US, it is recommended to focus on global pricing resources such as household appliances, construction machinery, commercial buses, power grid equipment and games, and non-ferrous metals. 3) Cycle reversal: Based on the position of the production capacity cycle, it is recommended to focus on supply and demand issues close to an inflection point or policy support areas, and focus on chemicals, aquaculture, new energy, etc. Furthermore, the current real estate chain and general consumer market may still be on the left, and macroeconomic changes and policy reform dividends in 2026 are expected to balance the “temperature gap” between the old and new economies. The high dividend style may still be mostly structured, phased opportunities.