CITIC Securities: AI momentum pullback is not the dividing line between bull and bear markets

A CITIC Securities research report argues that the AI trend pullback is not the start of a bear market, and that non-AI sectors may instead face a more favorable environment, because in the short term the AI industry has produced negative externalities for other economic sectors such as sharp rises in materials and resource prices, surging interest rates, and crowding out of employment. The report judges that the main process of second-derivative valuation correction in AI sectors and valuation contraction in non-AI sectors is expected to be completed this year, with a higher probability afterward of narrowing divergence and broadening market breadth, but capital-side clearing will take time; at this stage, stable-return strategies represented by PB-ROE may be more advantageous.