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On October 25, 2026, CITIC Securities released a research report putting forward the judgment that a pullback in the AI industry trend does not equal a turn from bull to bear and is not the dividing line between bull and bear markets. Its research holds that in this round of AI-hardware-led market, non-AI sectors had already declined, and AI was merely the last to catch up on the drop; since July 1, the aggregate-method PE (TTM) of the electronics and communications sectors has compressed from 74.0x to 42.4x, a decline of 42.8%, comparable to the 45.7% of the first round of adjustment in new energy in 2022. As of October 21, the margin financing balance in the two markets had fallen back to 2.45 trillion yuan, down 560 billion yuan from this year's high, and the clearing of funds is nearing its end. Another report on the same day said CITIC Securities believes 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 of subsequent divergence narrowing and market breadth expanding, but the clearing of funds will take time, and at this stage a stable-return strategy represented by PB-ROE may be more advantageous. At present, this judgment remains a brokerage research view, with no subsequent developments yet.
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Oct 26
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Oct 25
East Money
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.
Yicai
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; 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 soaring 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, and that subsequent convergence of divergence and expansion of market breadth are more likely; however, clearing of funding conditions will take time, and at this stage steady-return strategies represented by PB-ROE may be more advantageous.
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This post contributes to heat; it is not a formal report or confirmed fact.
Wallstreetcn
CITIC Securities: The AI Momentum Pullback Is Not the Dividing Line Between Bull and Bear Markets
CITIC Securities Research believes that a pullback in the AI industry trend does not equal a turn from bull to bear. In this round of AI-hardware-led market, non-AI sectors had already declined, and AI was merely the last to catch down. Since July 1, the aggregate-method PE (TTM) of the electronics and communications sectors has compressed from 74.0x to 42.4x, a decline of 42.8%, comparable to the 45.7% of the first round of adjustment in new energy in 2022. As of October 21, the margin financing balance in the two markets had fallen to 2.45 trillion yuan, down 560 billion yuan from the year's high; the clearing of funding conditions is nearing its end, and a low-valuation quality strategy based on PB-ROE may be more advantageous.
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