CITIC Securities Qiu Xiang: Spring is a critical decision-making period for indices, steadfastly laying out the evaluation and positioning around China's advantaged manufacturing pricing power.

Ask AI · How can AI innovation accelerate China’s advantage manufacturing sector in gaining pricing power?

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Blue Whale News, March 19th (Reporter Wang Wanying)
Today, at CITIC Securities’ 2026 Spring Capital Market Forum, CITIC Securities’ Chief A-shares Strategist, Qiu Xiang, pointed out that geopolitical turbulence coincides with the index reaching a critical threshold. Spring is a period for rebuilding confidence and making decisive index moves. Against the backdrop of rising global energy costs and weakening financial conditions, low valuation and pricing power are the two most important factors. In terms of allocation, there is a firm focus on re-establishing China’s advantage in manufacturing pricing power.

Qiu Xiang noted that the current market faces three key issues:

1. The Middle East geopolitical conflict is gradually evolving into a sustained and intense disruption of global supply chains. After a year and a half of a bull market in A-shares, they are now at a critical juncture—what will drive continued upward movement?
2. Global financial conditions are beginning to weaken. Will market styles undergo significant changes?
3. Disruptive innovation brought by AI and the rapid expansion of code are accelerating, impacting economic structure and asset allocation directions. The answers to these questions will determine investors’ strategies.

From an index perspective, valuation repair space is limited. The key to the next phase of the A-share bull market is a rebound in corporate profit margins. The disruptions in global supply chains once again provide an opportunity to test China’s advantage manufacturing pricing power. From a style perspective, the Middle East conflict acts as a catalyst for style shifts this year. Under the background of rising global costs and weakening financial conditions, low valuation and pricing power are the two most critical factors. From an industry trend perspective, the expansion of code and physical scarcity—manifested in China as an increase in advantage manufacturing pricing power—are reinforced by disruptive AI innovation and global energy supply chain disruptions.

In terms of allocation, it is recommended to confidently focus on re-establishing China’s advantage in manufacturing pricing power (chemical, non-ferrous metals, electrical equipment, new energy). Price increases remain the core trading signal, while increasing exposure to low-valuation factors (insurance, securities firms, electricity).

(Blue Whale News, Wang Wanying, wangwanying@lanjinger.com)