CITIC Securities: Steadfastly Layout Around China's Advantaged Manufacturing Pricing Power and Value Rerating, Price Increases Remain the Core Trading Thread

K-LinePoet · 2026-03-16T13:04:49+00:00

CITIC Securities research report indicates that sustaining a bull market in A-shares requires attention to rising enterprise profit margins and improved pricing power in manufacturing. The Middle East conflict may trigger a style shift, with low valuation and pricing power being key. The report recommends investing in manufacturing sectors such as chemicals and nonferrous metals, while increasing allocation to low valuation factors.

K-LinePoet

2026-03-16 13:04:49

Abstract generation in progress

On March 15, CITIC Securities’ latest research report pointed out that at the index level, there is limited room for valuation to continue to recover. The rebound in corporate profit margins is the key to China’s A-shares continuing their bull market in the next phase. Disruptions in the global supply chain once again provide an opportunity to verify China’s manufacturing advantage in pricing power.
At the style level, the Middle East conflict is the catalyst for this year’s style rotation. Against the backdrop of rising global costs and weakening financial conditions, low valuation and pricing power are the two most important factors.
At the industry trend level, code expansion and physical scarcity are reflected in China as an increase in the pricing power of advantageous manufacturing industries. Accelerating disruptive innovation in AI and disruptions in the global energy supply chain are strengthening this trend.
In terms of allocation, we remain committed to rebalancing around China’s advantageous manufacturing pricing power (chemical, non-ferrous metals, electrical equipment, new energy). Price increases remain the core trading clue, while also increasing exposure to low valuation factors (insurance, securities, electricity).
(Interface News)

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