On April 20, Galaxy Securities released a report outlining strategic investment opportunities in China's A-share market. According to Jin10, the report emphasizes three main areas of focus. Firstly, it highlights the importance of technological innovation, self-sufficiency, and industry prosperity, with particular attention to sectors with high performance potential such as power equipment, energy storage, semiconductors, computing power, and communication equipment.
Secondly, the report suggests that investors should consider resource sectors benefiting from the positive year-on-year change in the Producer Price Index (PPI) and rising price levels. This includes non-ferrous metals, basic chemicals, oil and petrochemicals, building materials, and steel.
Thirdly, the report advises focusing on themes related to energy and alternative demand amid ongoing geopolitical conflicts, as well as defensive sectors like coal, coal chemicals, new energy, finance, and utilities.
Additionally, the report notes that the consumer sector is currently undervalued compared to historical levels, with certain sub-sectors offering potential for recovery. It recommends paying attention to agriculture, forestry, animal husbandry, fisheries, food and beverages, and household appliances.
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