CITIC Securities: Focus on Growth and Import Substitution Opportunities in China’s Powder and Fluoropolymer Materials

CITIC Securities said it is watching the growth pace of domestic Chinese targets in powder materials and fluoropolymer materials, as well as opportunities from faster import substitution. According to Jin10, the firm said AI-driven inflation has reached the materials segment, where targets are more dispersed and many leading companies are in Japan. It added that since the second half of 2025, bilateral relations have shown signs of accelerating tension. CITIC Securities said supply-side “de-Japanization” and demand-side AI inflation form an almost ideal combination. It judged that the “de-Japanization” theme has more room to develop and said it will continue to focus on “de-Japanization” trades, while tracking the growth of domestic Chinese targets in powder materials and fluoropolymer materials and the acceleration of import substitution.