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On November 3, 2026, CITIC Securities released a research report stating that the market adjustment has already occurred earlier this year and that structural turning points will increase next year. The report forecasts that in 2027, trends within the technology sector will diverge, with broad structural recovery opportunities in non-AI sectors, and that the main process of valuation contraction was completed in 2026; it estimates that in 2026 and 2027, the net profit attributable to parent companies of all A-share companies will grow by 15.5% and 9.5% year on year, respectively, while the net profit attributable to parent companies of all non-financial A-share companies will grow by 20.1% and 14.7%. On allocation, CITIC Securities recommends moderate diversification around four themes: steady returns, excellent overseas-expanding manufacturing, domestic demand recovery, and new AI technology topics. On the same day, the A-share AI hardware sector fell sharply, with the CPO concept index down 6.77%, Zhongji Innolight down 12.69%, and Cambricon down 10.81%, as funds rotated into the Moutai Index and the Ning Combination. The views in the research report have currently been relayed by sources such as East Money.
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Nov 3
Yicai
AI hardware financing positions retreat sharply; Moutai Index and Ning Combination strengthen against the trend
On November 3, the A-share AI hardware sector fell sharply, with the CPO concept index dropping 6.77% to a new low since late March. Zhongji Innolight fell 12.69% and Cambricon fell 10.81%. Of 650 stocks in the electronics and communications sectors, 391 had pulled back 50% from their intra-year highs. Margin financing balances fell from about 2.52 trillion yuan at the end of September to 2.30 trillion yuan on November 2, with Zhongji Innolight's margin financing balance down nearly 40% during the month. Capital shifted to the Moutai Index and Ning Combination, with Kweichow Moutai up 2.84% and CATL up 3.80%.
East Money
Brokerage Morning Meeting Highlights: CITIC Securities Says Non-AI Sectors Have Broad Structural Recovery Opportunities
CITIC Securities believes that AI is still in the early stage of development; if AI investment slows, non-AI sectors are expected to see a turnaround, with broad structural recovery opportunities, and the main process of valuation contraction was already completed in 2026. China Securities noted that the explosive growth of AIDC combined with incremental demand from new energy vehicles is driving up prices for power semiconductors, and it is expected to bring incremental demand for SiC power devices on the scale of tens of billions by 2030. CICC believes that the full-scale explosion of Agents must wait for a "breakthrough point" in technologies such as AI and in costs.
East Money
CITIC Securities: Trends within the technology sector are diverging, and non-AI sectors present broad opportunities for structural recovery
A CITIC Securities research report forecasts that in 2027, trends within the technology sector will diverge, non-AI sectors will present broad opportunities for structural recovery, and the main process of valuation contraction was already completed in 2026. The research report estimates that in 2026 and 2027, the net profit attributable to parent companies of all A-share companies will grow by 15.5% and 9.5% year on year, respectively, and the net profit attributable to parent companies of all non-financial A-share companies will grow by 20.1% and 14.7% year on year. In terms of allocation, it is recommended to moderately diversify around four threads: steady returns, excellent overseas-expanding manufacturing, domestic demand recovery, and new AI technology themes.