Northeast Securities Liao Bo: Spring Layout Strategy "Energy Transition First, Agricultural Products Second"

How to finely explore the driving forces of the energy and chemical sector?

Southern Finance, 21st Century Business Herald Reporter Yuan Sijie, Hong Kong Report

“From the historical cycle of commodity rotations, after precious metals and industrial metals gain momentum, agricultural products often serve as the final phase of the cycle. Coupled with potential climate phenomena this summer impacting supply, and the strategic importance of agricultural products under the geopolitical landscape, the elasticity on both demand and supply sides will amplify the potential for price increases in agricultural products,” said Liao Bo, Chief Macro Economist at Northeast Securities Research Institute, during the ‘Bay Area Financial Experts Conference.’ His investment strategy for spring is to “focus on energy and chemicals first, then agricultural products.”

On March 11, the ‘Bay Area Financial Experts Conference’ hosted by Southern Finance Media Group was held in Hong Kong. The event, themed “Vision 2026—Policy Interpretations of the Two Sessions and Spring Investment Outlook,” gathered chief economists and market strategists from several leading financial institutions for a high-level, in-depth dialogue.

Liao Bo warned that the current market performance of the energy and chemical sector is very complex, involving risk premiums from geopolitical conflicts and deep-rooted logic such as Europe’s capacity exit and reshaping of global market shares. In this field, different commodities are driven by entirely different forces, requiring investors to conduct detailed analysis to identify opportunities truly driven by profit improvements.