STOCKS | Brokerage Says Market Style Faces Short-Term Test, Recommends Four Allocation Themes

CITIC Securities said market style is facing a short-term test and that capital positioning could drive a shift from high-priced sectors to lower-priced ones. According to Jin10, a CITIC Securities research note said that with low holdings and low valuations in the consumer sector, along with relatively higher dividends and potential policy expectations, the value of a temporarily balanced, sector-based allocation has become more evident. The brokerage recommended four main allocation themes: supply-side reversal opportunities in agriculture (breeding), long-term expansion in service consumption, valuation opportunities in essential consumer goods, and long-term structural opportunities in new consumption.