CITIC Securities warns that rapid growth in A‑share offshore revenue does not
imply stable RMB profits. FX affects reported results through revenue, costs,
exchange gains/losses, derivatives and other comprehensive income (OCI). It
recommends incorporating FX into earnings models, flagging firms with high
offshore revenue and high FX sensitivity as sources of earnings‑surprise risk,
preferring high‑offshore/low‑sensitivity profit‑stable names, and warning of
firms with large foreign‑currency debt, material net FX exposures or inadequate
hedging.
